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Dec 01
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HOLIDAY FESTIVITIES: PROTECT YOUR GUESTS – AND YOURSELF!

By Your Employee Matters

Eggnog, latkes, old friends, new friends – and a whole lot of beveraging! Believe it or not, the holiday season is just around the corner. On behalf of everyone at HR That Works, let us be the first to wish you a safe and happy holiday!

We also want to remind you that as you plan your workplace holiday festivities, plan for the safe arrival home of every guest. For some time, it has been settled law that if a guest at a workplace event consumes alcohol, drives, and injures or damages someone or something (including themselves) the host employer can be held liable by the court any for damage. It’s not enough for a representative of the host employer to discourage guests from drinking and driving. Courts require more active intervention.

To protect your guests and others from harm, and your workplace from legal liability, consider these best practices:

  • Make sure that attendance at the party is voluntary.
  • Hire professional bartenders to serve alcohol; these people are trained to spot intoxicated revelers and how to handle them.
  • Provide non-alcoholic beverage options.
  • Avoid an “open” bar; instead provide each guest with a limited number of drink tickets.
  • Have food of substance – not just chips and pretzels – served whenever alcohol is available.
  • Stop alcohol service two hours before ending the function.
  • Confront intoxicated guests immediately and cut them off; don’t wait until they are ready to leave the party.
  • Don’t inquire of an apparently impaired guest whether they think they’re able to drive home. The worst person to ask is the intoxicated person whose judgment is impaired; if you suspect that someone is unable to drive, don’t allow them to do so.
  • Have a taxi service available for any guest who requires one.
  • Call a friend or family member to pick up intoxicated guests.
  • Arrange for discounted rooms at the event location (if possible) or a nearby hotel.
  • Never allow anyone who appears intoxicated to get behind a wheel; if necessary, contact police for assistance.
  • Contact your insurer to discuss appropriate coverage for your event.

Provided by Worklaw® Network firm Sherrard Kuzz LLP of Toronto.

Dec 01
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EMPLOYER’S SUSPICIONS ABOUT EMPLOYEE MISCONDUCT DON’T HAVE TO BE RIGHT, JUST REASONABLE

By Your Employee Matters

The U.S. Court of Appeals for the Fifth Circuit has ruled that if an employer terminates an employee based on a good faith, reasonable belief that an employee engaged in misconduct, which might later prove to be a mistaken belief, this mistake does not demonstrate that the employer’s reason for disciplining the employee was pretextual.

Facts of the Case: In Cervantez v. KMGP Services Co. the employer terminated the plaintiff after it discovered that his computer User ID and password had been used to access pornographic Web sites from one of the company’s shared computers in the break room. The company conducted an investigation and determined that the plaintiff had been at work on the dates that his User ID was used to access hundreds of these sites. When the plaintiff was told that he was being fired, he denied having visited any such Web sites, and then sued the employer, alleging that he was fired because of his age in violation of the Age Discrimination in Employment Act. During a subsequent unemployment hearing, the plaintiff was given a copy of the log of Web sites he allegedly visited with his User ID. The plaintiff conceded that the log showed attempts to access prohibited sites on dates that he was at work, but he also identified attempts made on dates that he did not work or at times long after his shift had ended.

The Court’s Ruling: The Fifth Circuit found that the employer’s reason for discharging the plaintiff – violation of its computer use policy – was a legitimate, nondiscriminatory reason, and that the apparent inconsistencies in the log detailing the Web sites the plaintiff allegedly accessed did not demonstrate that the employer’s reasons for firing him were pretextual. The Court held that “a fired employee’s actual innocence of his employer’s proffered accusation is irrelevant as long as the employer reasonably believed it and acted on it in good faith.”

Lessons Learned: Employers often think that they must prove their suspicions regarding employee misconduct “beyond a reasonable doubt” before taking any action. This case, which is consistent with the law in most federal circuits, shows that the law does not require the employer to have irrefutable evidence of misconduct to take action. Employers who conduct a thorough investigation of the alleged misconduct and rely in good faith on the facts discovered in the investigation to make employment decisions limit their potential liability for discrimination claims, even if the facts relied upon later prove to be incorrect. Of course, employers must ensure that their investigations are thorough and do not exclude or ignore evidence that would ordinarily be considered.

Article courtesy of Worklaw® Network firm Shawe Rosenthal (www.shawe.com).

Dec 01
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EDITOR’S COLUMN: SPIRITUALITY AT WORK

By Your Employee Matters

This is the “spiritual” season. What does it mean to be spiritual at work? To begin with, there’s a distinction between being religious and being spiritual. Religion is, of course, a way that we interpret our spirituality. It’s OK to communicate your religious beliefs, but only if you do so in a way that does not proselytize, intimidate, or constrict those who don’t see eye-to-eye with your religious beliefs.

Spirituality is a broader and more encompassing notion. You can be spiritual without being religious, and as presented in the daily headlines, many people practice their religion in a way that is far from the common notion of “spiritual.”

For me, spirituality at work means following these precepts:

  • Show extra caring – It’s very hard to show that you care when you’re running 75 miles per hour – and who isn’t?! One way to show that you care is to stop running for a few minutes and just “be there” with someone: Be a fellow employee, subordinate, client, vendor, etc.
  • Control less and inspire more – All great spiritual teachers teach through the use of stories. Today’s spiritual leader or boss will be an excellent story teller too. Since the “performance approach” has found its demise, the alternative is to inspire people toward greater productivity.
  • Identify the greater meaning in the work you do – All of us run 75 miles per hour with blinders on. Whether we realize it or not, our activities have a “precessional” impact. For example, I had a client who was so focused on how they could be more customer-friendly that they never engaged their customers in the conversation. Once the employees fully understood the impact their work had on their customers (learned primarily through customer stories) they realized the deeper meaning behind the work they do every day.
  • Be open, wide open – This is perhaps the most emotional time of the year. Hearts are wide open. Hopefully we allow our minds to be open as well. What are you and others feeling at your workplace?

Most people express a need to address their spiritual side. If we ignore this need in the workplace, we never address the whole person. If we don’t address the whole person, we can’t expect whole productivity. We run the risk of losing to competitors who do.

The holidays are a great opportunity for bring in spirituality. It is all about the heart: About connection, caring, and memories. Here are a few suggestions for getting the holidays right:

  • Try not to run right through them. Everyone knows how stressful the holidays can be. Make a conscious effort to keep them simple and reduce unnecessary stress.
  • Helping employees connect with each other through the holidays and beyond, not just at the annual holiday party. Have a potluck lunch where employees bring meals representative of their holiday traditions. Ask them to share some of their favorite holiday stories. Ask them to help decorate the company office.
  • Be inclusive. Allow all employees to celebrate the holidays that are meaningful to them.
  • Maintain the holiday spirit within yourself, just like old man Scrooge did when he got his wake-up call. That means you’ll be gentler, more caring, and more giving.
  • Give together, whether it’s jointly contributing blood to the blood bank, serving a Thanksgiving meal, supporting a child care facility, or whatever you can do.
Dec 01
Love0

RE-EVALUATE YOUR LIFE INSURANCE NEEDS ANNUALLY

By Life and Health

How long has it been since you last reviewed your Life insurance coverage? If you are like most, chances are you long ago filed your policy away and haven’t thought about it since.

But life is not static, and circumstances do change. Major life changes such as marriage, the birth of a child, the purchase of a new home, or even an increase in salary can shape how much financial protection you and your family needs.

Even if a year goes by without any major life events, it’s still a good idea to review your coverage. The amount of your Life insurance coverage should be sufficient to meet the current obligations and future needs of your loved ones. If you have taken advantage of historically low interest rates and recently refinanced, make sure you have enough coverage to satisfy your new loan obligations. If you’re single, consider the cost of a funeral, outstanding medical bills, credit card balances and ongoing financial assistance for elderly parents who might be dependent on you.

And while you’re reviewing your coverage, it’s also a good idea to confirm that your current beneficiary elections are still accurate.

If you’re uncertain whether your current coverage is meeting your family’s needs, contact us for a needs analysis to provide you the peace of mind that your family will be taken care of should the worst happen.

Dec 01
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DISABILITY INSURANCE COULD BE MORE CRITICAL THAN YOU THINK

By Life and Health

You likely already have Life insurance to protect your family against the financial adversity they could face after your unexpected death. And you’ve probably insured your home, cars, and other personal possessions against the financial loss that can result from fire, theft, or damage. But what have you done to protect yourself and your family against an injury or sickness that affects your ability to work? Do you have Disability insurance?

The reality of how long you and your spouse could stay afloat if one of you were to lose your income due to a disability is sobering. On one income you might no longer have the ability to pay your mortgage, car payments, and other bills. If you are without Disability insurance, tapping into home equity, retirement savings, or credit cards can offer a temporary solution with damaging long-term consequences. Disability insurance offers an affordable method to maintaining your lifestyle without creating additional debt for your family.

There are many different ways to obtain Disability insurance. You might have group coverage at work, through unions or membership groups, and depending on the nature and cause of your disability, you might also qualify for Workers Compensation, Social Security, and veterans’ benefits. Without the benefit of Group insurance, individual coverage is a must.

There are many different types of Disability insurance contracts and several definitions of disability. Consider whether you contract includes:

  • A favorable definition of total disability that is consistent with the risk of your occupation and, at a minimum, ensures the payment of benefits in the event you suffer a “loss of income.”
  • A non-cancelable, guaranteed renewable clause that states the insurance company cannot cancel the policy or increase the premium until a certain age (as specified in the policy).
  • Benefits that are payable until age 65 or later.
  • A waiting period consistent with your overall financial plan. The longer you wait to receive benefits after your disability, the lower your premium. You can purchase coverage that provides benefits on the 31st day of disability or up to two years later. Whichever option you choose, make sure you can handle the financial exposure.
Dec 01
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REPLACEMENT COST VALUE VS. ACTUAL CASH VALUE – UNDERSTAND THE DIFFERENCES

By Personal Perspective

Homeowners insurance policyholders usually have the option to insure to actual cash value (ACV) or replacement cost value (RCV). To make the best decision, the individual first needs to gain a clear understanding of the difference between the two policy options.

In a nutshell, the difference between RCV and ACV is wear and tear; otherwise known as depreciation. ACV considers that the lost property has most likely depreciated over time, and endeavors to insert depreciation into the equation. For instance, suppose the ruined property was a sofa that would cost $700 to replace. Even though the sofa was in good shape for a 10-year-old piece of furniture, it was definitely not brand new. In 10 years time, some wear and tear inevitably occurred. With ACV, the insurance company might determine that $30 of depreciation occurred each year since the sofa was purchased. In this case, the sofa would only be valued at $400 at the time of the loss. The company would pay you $400 minus any applicable deductible. In a sense, you would be paying an increased deductible in the form of the $300 of depreciation. To summarize ACV, the insured would pay the difference between the replacement cost, the amount the old sofa depreciated by, and any deductible. In essence, the policyholder is “co-insuring” that amount.

On the other hand, RCV is simply the cost of replacing the lost property with either an identical or similar piece of property. Using our sofa example, if it costs $700 to replace the sofa, the insurance company will pay you the $700 minus any applicable deductible. Even though the ruined sofa was showing its age, and could never be sold for $700, RCV allows the policyholder to recoup the value of a brand new replacement sofa.

Which option is best? This question cuts to the core of what insurance is all about: Making the insured whole again. In some cases, ACV falls short. Conversely, RCV can create an overly beneficial situation for the insured. Not including sentimental value, if the sofa is old and dilapidated, but the insurance covers RCV, it is obvious that the policyholder will benefit greatly by receiving enough funds to purchase a brand new sofa to replace the old one.

An old house that has been damaged severely by a fire could provide a more dramatic example of RCV. At the time of the fire, the house might have only been worth $200,000, because the components of the house (such as roof, flooring, HVAC etc.) were approaching the end of their life span. In this case, the house would increase in value as the old worn-out components were replaced with brand new ones. So the homeowner would be better off in terms of the value of their home, than if the fire had never occurred at all.

Some insurers stipulate that all repairs must be completed in order to obtain the full replacement cost of the property. They might decide to pay the ACV up front, and have the rest of the payment (the difference between RCV and ACV) contingent on all repair work being completed. This keeps the insured from pocketing the money and gaining financially from the loss.

There is at least one caveat regarding the benefits of RCV, however. Since the real estate market can fluctuate quite a bit, sometimes RCV turns out to be less than ACV. When the housing market is strong, and home prices are high, the actual cash value can be higher than the cost of replacing a home with one that has similar features and qualities. Therefore, the additional cost of purchasing RCV might be a bad decision. As always, consult with our agents to see which option is right for you.

Dec 01
Love0

AVOID CAR ACCIDENTS AT ALL COSTS

By Personal Perspective

On average, there are more than six million auto accidents on U.S. roads every year. Sadly, 34,017 of these crashes proved to be fatal in 2008, according to the National Highway Traffic Safety Administration (NHTSA). Based on these shocking statistics, it might seem inevitable that we’ll all suffer from an auto accident at some point. However, there are numerous precautions you can take when you’re behind the wheel to reduce your risk of having an accident. Auto insurance experts implore drivers to wear their seatbelts, drive defensively, closely follow driving laws and be considerate to other drivers. Read on for more driving safety tips that will help you steer clear of auto accidents.

Keep your eyes on the road.

When you’re behind the wheel, it’s extremely important to stay focused on the road at all times. The NHTSA reports that driving distractions cause up to 4,300 accidents every day in the U.S. That’s why you shouldn’t take your eyes off the road for even a moment, whether you’re changing radio stations or dialing a number on your cell phone. Safety experts say you should pull over to a safe place on the side of the road if you need to do any of the following:

  • Pick up an item you dropped
  • Change CDs
  • Look at a map
  • Eat or drink
  • Change radio stations
  • Dial a number, talk on the phone, or send a text message
  • Read a newspaper
  • Apply makeup, comb your hair, or take care of any other personal grooming

Just say no to road rage. Safety experts say drivers should also avoid aggressive driving. Be courteous to other cars on the road, and control your road rage. Although it might be tempting to yell and gesture at another driver who cuts you off on the highway, try to keep your cool. If you antagonize an aggressive driver, the situation could escalate quickly. If you fear that another driver is putting you at risk, call the police immediately

Try to remain polite on the road. There seems to be a common phenomenon where people who are generally well-mannered in every day life lose their sense of common courtesy when they’re behind the wheel. You probably see it every day during your commute. For example, when you turn on your signal to switch lanes, the driver in the next lane speeds up and blocks you in. Although it can be easy to lose your temper in this situation, you’re better off letting them pass than trying to cut them off. After all, countless accidents occur every day because of aggressive driving.

Top 10 safety tips. Follow these top 10 safety tips to reduce your risk of having an auto accident:

  1. Never drive after you drink alcohol, even if you’ve just had one or two drinks.
  2. Don’t give in to distractions, such as playing with your iPod, reading a text message, or picking up a toy your child dropped in the backseat.
  3. Avoid road rage. If you come across an aggressive driver, don’t antagonize or encourage them. Keep your cool and call the police if the driver is putting other motorists at risk.
  4. Keep a safe distance between your car and the vehicle in front of you. For every 10 miles per hour of your driving speed, leave at least one car length between your car and the car in front of you.
  5. Try to maintain a consistent speed. Don’t continually slow down and speed up unless the posted speed limit changes.
  6. Keep your car in tip-top shape. Get regular oil changes and tune ups and check the condition of your tires at least once a month.
  7. Stay alert when you drive through intersections. Most accidents occur in intersections, so be sure to look left, then right, then left again to make sure it is safe to pass through.
  8. Keep your side mirrors and rear-view mirrors adjusted properly. As you drive, check your side and rear-view mirrors every 15 seconds to make sure you’re in the clear.
  9. Be aware of road conditions and react appropriately. For example, turn on your lights if you’re driving at dusk or dawn or in the rain. If the roads are wet, snowy or icy and you feel your car starting to hydroplane, don’t brake suddenly or turn the steering wheel. This could send you into a skid. Instead, ease off the gas pedal slowly and steer straight until you feel your tires regain traction.
  10. Sign up for a defensive driving class. With the proper training, you’ll be able to react more quickly to potential accidents on the road.
Dec 01
Love0

RECENT STUDY CONFIRMS BIGGER CARS ARE SAFER

By Personal Perspective

When it comes to cars, is it true that bigger is always better — and safer? Based on an April 2009 study by the Insurance Institute for Highway Safety (IIHS), the answer to this longstanding question is a resounding yes. The study shows that larger, heavy-duty vehicles are fundamentally safer than smaller, lightweight cars.

Considering recent announcements, this revelation is more important than ever. This May, President Obama unveiled his massive fuel efficiency plan. Under the new standards, auto makers will be ordered to increase the fuel economy of vehicles sold in the U.S. to 35.5 miles per gallon by 2016. This means manufacturers will have to produce smaller, more lightweight, fuel-efficient vehicles.

Although supporters of the plan say it will help cut our nation’s greenhouse-gas emissions, opponents argue that the mandate will result in thousands more Americans dying or becoming seriously injured in auto accidents. Critics say that the number of auto fatalities could swell if hordes of “unsafe” subcompacts hit the road in coming years.

The physics behind car crashes

Why are bigger cars intrinsically safer? It all comes down to physics. According to the IIHS report, “These tests are about the physics of car crashes, which dictate that very small cars generally can’t protect people in crashes as well as bigger, heavier models.”

Based on the law of physics, when a large object crashes into a smaller object, the larger object creates a greater impact. This rule holds true for car crashes, as confirmed by the IIHS study.

For this study, the IIHS conducted three front-to-front crash tests, each involving a microcar or minicar colliding with a midsize model from the same manufacturer. The Institute did not use SUVs, pickup trucks, or even large cars to pair with the micros and minis in the tests. “The choice of midsize cars reveals how much influence some extra size and weight can have on crash outcomes,” the report explains.

Instead, the Institute chose pairs of 2009 models from Daimler, Honda, and Toyota because these auto makers have micro and mini models that have earned good frontal crash ratings in barrier tests.

According to the final IIIHS report, “In a collision involving two vehicles that differ in size and weight, the people in the smaller, lighter vehicle will be at a disadvantage. The bigger, heavier vehicle will push the smaller, lighter one backward during the impact. This means there will be less force on the occupants of the heavier vehicle and more on the people in the lighter vehicle. Greater force means greater risk, so the likelihood of injury goes up in the smaller, lighter vehicle.”

Real-world car crash statistics confirm this theory. In 2007, the death rate in one to three-year-old minicars involved in multiple-vehicle crashes was nearly twice as high as the rate in large cars.

Good engineering makes a difference

Despite the recent IIHS study, some experts point out that vehicle safety doesn’t come down to car size alone. They say that quality engineering and design are more important to vehicle safety than the actual car size. Added safety features, such as front and side airbags, seatbelts with pre-tensioners and force-limiters, rollover prevention mechanisms, head restraints, and crash avoidance systems can also improve a vehicle’s safety greatly.

Experts also say the size of a vehicle’s front end can determine how the car fares in a crash. If a lighter vehicle is engineered with a large front end, creating a bigger space between the front of the vehicle and the front seat, the car would be much safer. That’s because a car with a large “crush space” decreases the severity of an impact and reduces the force to the car’s occupants.

Plus, auto makers can also reduce a vehicle’s weight without losing too much structural integrity by using aluminum, titanium, or plastic. Unfortunately, most manufacturers steer clear of these materials because they carry a high price tag.

Dec 01
Love0

REALIZE SUBSTANTIAL SAVINGS BY REVISING YOUR INSURANCE COVERAGE WHEN DOWNSIZING

By Business Protection Bulletin

In recessionary periods it is common practice for companies to downsize their operations. Downsizing would naturally include both your physical assets and personnel. Taking stock of your insurance requirements and re-evaluating your policy coverage should also be included in your downsizing strategy. And, even if you are not downsizing in the immediate future every business owner ought to take a close look and audit their insurance package anyway. If you are wondering why you should bother, the reason is simple: You could be missing out on some substantial savings!

Let’s elaborate further on the two main reasons you might want to audit your insurance coverage:

  • Paying for what you don’t need – If you are selling off assets then simply put, you don’t need to be paying for the insurance coverage. Similarly, if you’re reducing personnel then you don’t want to be paying for unnecessary Workers Compensation coverage, do you? If your policies are based on the value of your current assets then you will want to re-adjust your coverage and save on the premiums in the process. You might even use some of the premium savings to boost your EPLI coverage because laid off workers are not only disgruntled, but litigious minded when the pink slip lands on their desk.
  • There are bargains out there – Even insurance companies have to compete vigorously in a recessionary marketplace. Better deals can be obtained if you shop around. If you cannot find better competitive prices for your premium dollar, you will likely find alternative policies that offer better coverage for the same premium.

Start with an audit

Contact your insurance broker to help you perform a full insurance audit of your current situation. Think about your needs down the road by considering best and worst case scenarios. Don’t procrastinate and wait until the last minute when your policy is about to expire. An audit is best performed a few months prior to your policy expiration.

Ensure that your broker also comes back with other quotes from your insurance carrier’s competitors. This will at least prompt a very competitive bid from your current insurance carrier. They want to keep your business.

Remember to re-evaluate your insurance deductibles

When reviewing your policies don’t forget to review your current deductibles. If you are prepared to assume more risk then you can lower your premiums even further by increasing policy deductibles. Call us to arrange for a policy review with one of insurance professionals.

Dec 01
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LIMIT DURATION OF WORKERS COMP CLAIMS TO MINIMIZE COSTS

By Business Protection Bulletin

Workers Compensation claims are a major cost of doing business, and the length of time a claim remains open has a large effect. Claims that stay open for long periods of time are more likely to involve attorneys, high medical bills, and significant payments for lost wages. According to the Insurance Information Institute, between 2002 and 2007 the medical cost per lost-time claim (claims where the injured employee is unable to work) rose 50% faster than the annual rate of medical inflation for the economy as a whole. The institute estimates that attorney fees increase claim costs by 12% to 15% with no net gain in benefits to the worker. Most states index the maximum payment for lost wages to the state’s average weekly wage, a figure that generally rises each year.

Limiting the duration of Workers Compensation claims is an important strategy in the effort to hold down costs. To do this, employers have several options at their disposal:

  • Prompt notice of claims to the insurance company hastens the onset of medical treatment, speeds up the injured worker’s recovery and return to work, and reduces the likelihood that he will hire an attorney. Therefore, requiring workers to immediately report all injuries, however minor, and promptly reporting them to the insurance company can have a huge impact on the duration of a claim.
  • A prompt and thorough investigation of the incident is just as important. Interviews with the injured worker and witnesses, photographs, and other information gathered as soon as possible will help the insurance company to properly adjust the claim.
  • If the employee will be out of work for an extended length of time, the employer should keep in regular contact. An injured worker who gets the sense that his employer does not care will become a receptive audience for plaintiff attorneys. Employers might want to call the worker periodically to check on their condition, offer assistance with completing the paperwork, and generally to check on their emotional state.
  • The employer should have a good understanding of the state law pertaining to the waiting period for benefits covering lost wages. This is especially true if the employer operates in several states, as their laws might vary widely. Understanding how the law applies to the worker’s situation will help the employer set expectations properly. This reduces the chance of misunderstandings that can lead to problems down the road.
  • Building relationships with the physicians treating the employee will keep the employer better informed as to his condition, treatments, medications, and expected duration of disability. This should eliminate surprises and help the employer get the employee back to work sooner.
  • Return to work programs can shorten claim duration and reduce costs significantly. These programs permit an injured employee to return to work in some capacity before he has recovered to the point where he can resume his previous duties. They reduce payments for lost wages, meet the worker’s need to feel productive again, and remove incentives for the worker to hire an attorney.
  • Employers should review loss reports with their insurance agents and claim adjusters and ask questions about losses that do not appear to be progressing toward closure. They should also look for patterns in the loss reports to identify correctible factors that raise the cost of lost-time injuries.

Employers owe it to their workers to provide a safe workplace and benefits to help them should they get hurt. With some extra care and attention, employers can meet those obligations and keep costs in check. Contact our office today to see how we can help!

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