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robintek

Feb 28
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Does Your Newborn Need Life Insurance?

By Life and Health

You’ve recently welcomed a baby into your family, and now you’re ready to plan for your child’s future. You already know that life insurance is a wise financial decision for you, but does your newborn need life insurance?

Lock in Affordable Rates

Compare rates for a newborn life insurance policy and one designed for senior adults, and you’ll see that the newborn policy costs less. Life insurance companies know that young customers typically live longer, which decreases their risk of payout. By purchasing a policy now, you snag affordable rates while your child is young and healthy.

Assure Your Child’s Insurability

Insuring your infant does more than secure the best life insurance policy rates. It also ensures your child’s future insurability. In the future, illnesses like heart disease, diabetes and cancer affect your child’s ability to buy affordable life insurance. That’s why families choose to insure their healthy infants and assure their future insurability.

Provide for End of Life Expenses

It seems a little silly to think about paying for your newborn’s funeral.  However, the Centers for Disease Control and Prevention found that 4,246 children under the age of four died in 2011 from birth defects, genetic disorders and accidents. Life insurance covers burial and funeral costs, which gives you peace of mind and financial protection.

Give Your Child a Financial Head Start

Life insurance is typically available as term or whole life coverage. Either option provides essential coverage, but term life insurance usually costs less.

*Term insurance covers the policy holder for a set time frame. For example, buy your newborn a 15-year term life insurance policy, and your child is insured until he or she turns 15. In cases, this type of policy can be renewed.

*Whole life insurance provides a lifetime of coverage and builds cash value. As an alternative to an IRA or 529 Plan, whole life insurance gives you a way to save for your child’s future while providing life insurance for him or her.

Life insurance is designed to replace the primary wage earner’s income as it provides for the survivors’ financial needs. Purchasing a policy for your newborn can be a good idea, though, especially after you purchase adequate life insurance for yourself. Then weigh the pros and cons of newborn life insurance and talk to your insurance agent as you make this decision.

Feb 28
Love0

Lessons from the Recent Major Computer Hacks

By Business Protection Bulletin

Recent computer crimes involving hacking major department stores, governments, banks, healthcare providers, credit card companies, even motion picture studios suggest no system is safe from cyber-attacks.

How can we risk manage this threat?

Updating computer systems can be tricky and often exposes data normally kept safe behind firewalls. When components are switched out, oftentimes doors are left open for outsiders to intrude.

For example, when you must lower your own firewall, be sure you’ve changed the factory provided password to the next firewall. Check your fundamentals. Implement strict protocols for employees to change any aspect, hardware or software, of their company computers. Centralize this function if possible.

Train employees to recognize phishing scams. Do not relay log-in information or passwords in response to an email. If an email seems poorly worded with misspellings, it probably did not originate from a major corporation.

Change passwords regularly. Request all systems users to change their passwords often. The company can protect passwords through thorough hashing and encrypting.

The company should back up all encryption software and password information.

Completing all possible due diligence helps move the criminals to an easier target, but determined hackers can find ways in. So, how does a risk manager deal with one of the fastest growing liability risks for companies?

First, understand the magnitude of the risk. For each client record exposed through your company website, your company will provide a year of identity theft protection and cyber security. At a reasonable $150 per account, you gasp at the 1,000,000 customer accounts like the large chains or credit card companies exposed to loss.

These claims are becoming more frequent, and more severe. The only risk management answer is transferring the risk, and most likely through insurance. What limit is safe? Depending upon your data base from outside your company, customer data, supplier data, bank information, and things you can’t remember, like old accounts, these claims can bankrupt companies and destroy reputations if an inadequate response is offered.

Consider that $150 per account. How many will you likely lose in a cyber-attack? Talk to your insurance agent and find the best fitting plan. It’s worth the conversation.

 

 

Feb 28
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Invest in a Disaster Contingency Plan for Real Property

By Business Protection Bulletin

Property risk management in this real estate climate offers tricky valuation issues. Start with the balance sheet: what is the book value of the real estate assets? This number is the primary concern.

The practical value, the operations value, represents the nuts and bolts of the business. If your real property suffers a major loss, how easily can operations be transferred, set back up, and continue? If the business requires massive machinery rigged and moved, the cost can be quite high. This extra expense to relocate, whether temporary or permanent, is an intangible asset, and may require special attention to insure properly.

Real property, buildings, depreciate. The book value, under normal real estate market conditions, is typically significantly lower than the replacement cost of the buildings. An actual cash value, replacement cost less depreciation, will theoretically equate to the book value. But, you may need a new location.

First Contingency Question: Is our current location perfect, or could we move to a new site?

As your business changes, needs change. Offices can be more remote, industry requires some ground transportation, usually trains and trucks, or do you ship by sea? These considerations may have changed since your current site was chosen.

In a perfect world, where would you locate your operation as a new start-up? If it’s where you are now, you need to assure you can replace the building you are currently in, or build the redesigned building you may need to keep up with current building codes.

If you could move or would desire a new location, consider the current market value of your land, and add to that the actual cash value of your buildings. Can you acquire new facilities at the more desirable location for that budget? If so, your contingency plan might include this move, or possibly a rent to own option in an existing building.

Think through the disaster response. Would we want to literally replace what we have, or would that be a good time to change the operations, even slightly. This thought exercise gets better results when you’re not under the pressure of an actual disaster.

Second Question: Does our funding, including insurance coverage, reflect our catastrophe plan?

An important step in risk management – funding the risk. Review your policies, building valuations, amount of coverage, and any extra coverage like extra expense or loss of income.

Feb 28
Love0

Do You Have to Buy Renters Insurance?

By Personal Perspective

Now that you found an apartment, it’s time to sign the lease. Before you move in, though, decide if you need to purchase renters insurance.

What is Renters Insurance?

Let’s say the roof leaks and floods your bedroom. Your landlord will pay for structural repairs, but you’re responsible to replace your personal property. That’s why you have renter’s insurance. It pays to repair or replace items that are damaged or stolen.

Is Renters Insurance Required?

Your lease may include a clause that requires you to carry renter’s insurance. It protects him or her from a lawsuit you may file if your personal property is damaged or stolen. Additionally, the building’s mortgage holder or insurer may require tenants to carry renters insurance. However, there is no universal law that makes renters insurance mandatory for all tenants.

Decide How Much Insurance Coverage You Need

Although you have the option to choose or decline renters insurance, it’s a wise investment. A small grease fire and the smoke and water damage that result can quickly ruin everything you own. If you can’t afford to replace your property, purchase renters insurance.

Determining how much insurance you need to buy can be tricky. First, decide if you want full replacement cost or actual cash value (ACV).

* Replacement Cost pays for you to buy new items at today’s cost no matter what you paid for the item. So even though your laptop is six years old, you can buy a new one with replacement cost renters insurance. This type of policy is a bit more expensive than actual cash value.

* Actual Cash Value (ACV) ACV covers the item’s current worth at the time it’s lost, stolen or damaged. This option is affordable, but if a fire damages your secondhand futon, you only receive a few bucks, which won’t be enough to buy a quality replacement. 

Next, figure out the value of what you own. Make a detailed inventory list and assign each item a fair value. With this list, you can decide on a coverage amount that provides the protection and peace of mind you need.

You’re now ready to choose a deductible. Higher deductibles usually mean lower premiums, but make sure you can afford the higher deductible.

Finally, talk to your insurance agent. He or she can help you find the coverage that fits your budget and needs. While renters insurance is usually optional, it’s a wise investment that you’ll probably be glad you made.

Feb 28
Love0

Do You Need Insurance For DIY Projects?

By Personal Perspective

If you’ve been working with your hands for any length of time, then you know that the difference between a professional job and a DIY project isn’t binary, it’s a spectrum. On one end, you’re taking your team out to build a house on a client’s property, and on the other end, you’re building a birdhouse in your garage just because it seemed like a fun way to kill an afternoon. In the middle, you’ve got storage sheds, home repairs, additional rooms, doghouses and so on. At some point along that spectrum, insuring your project becomes a necessity, either for legal or pragmatic reasons. But where exactly is that point? What kind of DIY projects do you need to get insured, and which ones can you afford to not worry about?

You have a few main concerns, here:

    1. Are you investing more than you can afford to lose?
    1. Is liability a concern?
    1. Will this affect any existing insurance policies you hold?

Take, for instance, building an additional room onto your home. This is going to have an effect on your existing homeowner’s policy, and if you don’t inform your insurer about your project, you may wind up invalidating that policy altogether.

On the other hand, spending a weekend erecting a doghouse in your backyard probably won’t affect your homeowner’s policy at all, and you’re probably not spending more than a hundred dollars on lumber and other materials. You may even be piecing it together from scrap wood left over from another project. The only concern here is liability, which might or might not be covered by your current homeowner’s policy. To play it safe you can always build a doghouse in the garage and wheel it out to the yard on a dolly to make sure you don’t wind up with barbecue guests stepping on a nail or something, but it’s generally worth checking your policy before starting any such project, just to be sure.

There are projects that may be covered by your homeowner’s policy in terms of liability, but wind up costing a little more than piecing a doghouse together out of scrap lumber. A shed, for instance, or costly home improvements. In these instances it’s down to peace of mind. Are you comfortable working without insurance, or would you like to have a safety net just in case?

If you’re bringing other people onto a project, then of course you’re probably going to want some basic liability coverage, but for more DIY projects than not, the rule of thumb is not to worry about insurance unless you feel uncomfortable without it, it’s required by law as with larger structures like guest homes, or it’s affecting a policy you already hold.

Feb 28
Love0

Home Insurance Facts for Your New Engagement Ring

By Personal Perspective

Did you buy or receive an engagement ring recently? Congratulations! Now, learn how to insure your valuable investment and protect your new heirloom.

Get an Appraisal

Before your insurance company will add your engagement ring to a policy, it needs to know your ring’s worth, brand, condition and description. If your ring costs under $5,000 and you bought it from a jeweler, the insurance company will probably accept the purchase invoice or receipt. Visit your jeweler for an official appraisal, though, if you bought the ring at an estate sale, inherited it from your grandmother or ordered a custom-made piece.

Purchase Insurance

After getting an appraisal, talk to your insurance agent about insuring it. You may be able to add your ring to your existing homeowners or renters policy. In cases, however, you’ll need  to purchase a rider that provides additional coverage.

Additionally, consider the coverage details. Does your policy cover the replacement cost of your ring if it’s stolen, damaged or lost? Do you have to use a specific jeweler for ring repairs or a replacement? Will you need an annual appraisal? These and other details help you choose the best policy.

Store Your Ring for Safekeeping

Of course, you or your fiancé plan to wear the engagement ring regularly. When you need to store it, though, implement a few safekeeping techniques that protect your ring’s value and deter theft and  damage.

First, use a sturdy case with a hard shell and a soft or padded lining. Then, store the case in a dry environment that features low humidity and a stable temperature.

Next, follow your jeweler’s guidance for your specific ring. Different gems and metals require different storage solutions. For instance, soft pearls are best protected when they’re placed in a soft bag that offers protection from dust, and silver retains its shine when it’s stored in a tarnish proof case.  Likewise, many gems crack or scratch easily, so separate your engagement ring from other items in your jewelry box as you protect it.

Finally, consider locking your ring in your home’s safe or bank’s lock box if you need to store your ring for extended periods of time.

Your engagement ring symbolizes your love. Protect it when you insure it. Your insurance agent will provide additional information as you care for your new ring forever.

Feb 28
Love0

New Year’s Resolutions for Risk Managers

By Construction Insurance Bulletin

New Year’s Resolutions for Risk Managers

Whether your business has downsized or grown over the past few years, the waters seem a bit calmer now; and it’s a good time to overhaul your risk management program.

Resolve to address the trends in liability claims:

•             Cyber liability is a rapidly growing source of claims.  These claims tend to be costly in terms of reputation as well as expensive to mitigate.  Spend some money avoiding these risks, particularly when you are on shared access on-site.
•             Building Materials and supplies.  The insurance industry is scared of finding the next asbestos claim.  Do not use known toxic products in construction.  Keep in mind environmental issues are an increasing source of claims.  Indoor air quality is a near-future catch-all vector for asthma, CPOD, and other respiration conditions lawsuits.  The formaldehyde sheet rock incident was quickly remediated; but use that as a lesson for mastic selection or supply sourcing.
•             Keep your work space dry.  Mold and mildew flourish at 15-18% moisture content.  Before buttoning up closed spaces, take time with a moisture meter and record the results.  This step is vitally important for new or replacement roofs.  Dry these areas thoroughly until moisture content is below 15%.
•             Employment practices.  With a greater number of women entering and thriving in the construction industry, resolve to treat these valuable employees on equal terms with their male associates.  And educate all employees about sexual harassment and bullying.  Zero tolerance is your best written policy for this liability.
•             The officers and directors of every public company are under attack from customers, employees, and regulators.  Review your D&O coverage thoroughly.

Resolve to be more proactive than in the past.  Check behind every delegated task.  Personally walk sites, shops, offices, and site trailers to assure fire and life safety equipment is available and properly functioning.  Verify OSHA logs and internal safety data is up-to-date and communicated properly.

Resolve to review your risk management program thoroughly and begin shopping your insurance coverage, including new insurance carriers early, at least 120 days before your preferred expiration date.  Get in sync with your agent or new agent on this matter.

The turmoil of the construction industry has sent shockwaves through the insurance industry as well.  Calmer times are ahead.  Just be sure your one of the first ones settled.

Feb 28
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Why Construction Companies Need a Safety Committee

By Construction Insurance Bulletin

Construction is the industry with the most injuries and fatalities in the United States. To make the industry safer and cut the number of employee injuries and fatalities, the federal government, state governments and even local government passed laws mandating safety committees, their make-up, and even meeting content. Nevertheless, there are many reasons why construction companies should embrace safety committees.

How Safety Committees Benefit Construction Companies

Talk to a safety professional and you soon realize that the most effective committees are committees that involve members from every level of the company or a company facility or job site.

When company executives and laborers and everyone between them participate, safety committees help prevent unsafe work practices and environments. Committees also cut employee exposure work-related injuries and illnesses. These accomplishments spur other employees to get involved in the company’s workplace injury and illness programs.

An active safety committee shows employees that the company care about employee health and safety; itself a motivator that improves productivity.

Another bottom line enhancer is that a strong safety record cuts workman’s compensation claims and in turn, reduces workman’s comp premiums.

When safety records are impressive, construction job sites are safer and accidents to visitors and passersby go down. In turn, premiums for commercial general contractor policies may plateau or even go down.

Moreover, a safe workplace record impresses project owners and makes a construction company a more attractive candidate for selection.

Measuring Safety Committee Value

Many companies mistakenly undervalue the value of environmental health and safety programs (EHS). Companies usually do not measure EHS correctly if at all. But, by using standard tools in the toolbox of business managers and in a way that executives understand company financial statements. Results of EHS can integrate and display as part of the overall EHS business strategy. Some popular tools used by EHS professionals to measure the return on investment (ROI) of EHS include:

  • Six Sigma
  • EMS/ISO 1400
  • Baldwin Measurement

OSHA offers a tool called Safety Pays that helps figure out the ROI for a company’s safety program.

No matter what tool a company uses, construction companies that are committed to safety almost always sees a higher ROI for its efforts when compared to companies for which the safety committee is simply a means for compliance.

Feb 28
Love0

The Worst Construction Mistakes Ever Made

By Risk Management Bulletin

Forgetting one hurricane tie before drywalling probably isn’t going to see a house going up in a tornado like in The Wizard of Oz. Some mistakes aren’t that big a deal. Others… well, here are some of the biggest mistakes ever made in construction, engineering and architecture:

The Aon Center

The Aon Center, completed in 1973, was known for its beautiful exterior made of Italian Carrara marble. A fetching addition to the Chicago skyline, it turns out that there’s a reason they don’t use Carrara marble on most buildings. It’s a very thin material. Just one year after the building was completed, pieces started to crack and fall off, one of them smashing through the roof of the nearby Prudential Center. Replacing the exterior with granite cost over $80 million. There’s something to be said for using the right materials the first time.

NASA and Lockheed Martin’s Mars Orbiter

Long story short: in 1999, Lockheed Martin used the English system of measurement on a project with NASA, while NASA used the metric system. The Mars orbiter was then unable to transfer its coordinates to the lab in California. Now there’s a $125 million chunk of useless metal floating around the galaxy. You might not be building a satellite any time soon, but it’s important to get on the same page with your crew and your client when it comes to how many inches are in a meter.

Vdara Hotel & Car Dashboard

The Vdara Hotel & Spa is a classic example of a designer putting form before function. All those reflective surfaces on the windows surrounding the pool looked absolutely stunning, but at mid-day, they created a sort of magnifying-lens-on-an-ant effect, scorching people in the swimming pool and turning the whole area into a car dashboard on a Summer afternoon. One man even claims to have had some hair singed right off his head while going for a swim.

Piper Bravo Oil Rig

The smallest mistakes can have major complications. The Piper Bravo Oil Rig exploded, killing 167 people, simply because safety inspectors forgot to replace a single safety valve after a routine check of the rig. The repairs cost more than $3 billion in 1994 USD. This is something worth thinking about the next time a worker decides that he doesn’t need to wear his goggles if he’s only going to be using the table saw for a couple minutes.

Source

http://www.businessinsider.com/worst-mistakes-in-history-2011-4?op=1

Feb 28
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STAYING OFF OSHA’S HIT LIST

By Risk Management Bulletin

The Occupational Safety and Health Administration (OSHA) has a list of companies that face inspection and enforcement – and your company might well be on it!

Here are five ways to evaluate your chances of getting a visit from OSHA:

    1. Check your own injury and accident rates. Use the OSHA Form 300 log and Form 300A Summary to review your accident statistics, injury and illness logs, and incident rates, particularly your Days Away, Restricted, and Transferred (DART) rate, and Days Away from Work Injury and Illness (DAFWII) rate.
    1. Look at OSHA trends in citations and violations for your industry. Go to the OSHA Web site at http://www.osha.gov/pls/imis/citedstandard.html and browse through the regulations that cover your industry for the number of citations under a particular regulation
    1. Compare your incidence rate with those of your competitors. You can find the history of your competitors’ inspections on the OSHA site at http://www.osha.gov/oshstats/index.html. The database also contains the list of citations by regulation number.
    1. Determine whether you’re making the news. OSHA inspectors respond to media stories about an organization, even if the coverage is positive. If a news agency wants information about you, carefully screen any comments or photographs you provide. Even a positive story can sting you inadvertently when it comes to workplace safety and health.
    1. Monitor what’s new with OSHA. Keep an eye on the agency’s Special Emphasis program (http://search.usa.gov/search?affiliate=usdoloshapublicwebsite&query=Special+Needs+Program&x=34&y=8) for targeting certain high-hazard industries)
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