We’ve Got Your IT Business Covered With Technology Insurance

Commercial property insurance covers loss or damage to a business’ land and equipment. How much subscribers actually receive, however, depends largely on the terms of their individual contracts. When an event triggers an insurance policy, insurance companies have several ways of determining the value of lost property. Two of the most used valuations are replacement value and actual cash value. What do these terms mean? What are the advantages and disadvantages of each method?

Defining Replacement Value and Actual Cash Value

When your insurance claim is approved, adjusters must determine the exact dollar amount to award the policyholder. Of the many ways that exist to arrive at that figure, replacement and actual cash value are the simplest and most popular options.

• In a replacement value agreement, the policyholder will receive enough money to buy a comparable version of the lost item. Payment is meant to enable the subscriber to buy an item of the same material, quality, and purpose as what was lost. Adjusters can grant amounts up to the policy’s full limit.
• Actual cash value policies award policyholders an amount based on the fair market value of their lost item. In this valuation, depreciation weighs heavily on the final payout. Actual cash calculations begin with the price subscribers would pay to get a new version of their lost item. Then the payout is adjusted to reflect the number of years the item was owned, condition at the time of loss, and other factors that would limit the fair market resale value of the item.

The exact meaning of actual cash value can vary by location. Check with the insurance experts at Insure Your Company to find out the latest legal definition for your area.

Advantages and Disadvantages of Different Valuation Methods

Both replacement and actual cash value policies offer unique benefits to subscribers.

Replacement value policies:

• Are easy to understand. Their simple terms significantly reduce subscriber frustration.
• Offer the highest payout in the case of accident or loss.

Actual cash value policies:

• Offer lower premiums for temporarily cash-strapped business owners.
• Can be supplemented with high-value umbrella insurance for greater protection.

They also have drawbacks that should be considered when building a financial protection plan.

• Commercial property owners should carefully consider available cash reserves before signing up for a replacement value policy that covers anything less than 100% of your property’s value. In the case of a catastrophic loss, partial coverages may leave you with a significant funding gap.
• Resource-strong businesses can use actual cash value policies to protect their goods and equipment at minimum cost. Even with the insurance payout, younger operations, recently expanded businesses, and those that rely on specialized tools and materials may not have the cash to replace vital components after a loss.

Which One is Right for You?

Not sure which type of contract is best for your business? Answer these questions to help you understand how different valuation methods can affect your commercial business.

• How much of your company’s assets are liquid? How long do you expect that to last? If you plan to keep a large cash reserve on a regular basis, it may be worthwhile to opt for lower premium actual cash value coverages. If all your resources are tied up in improvements and expansions, protect your investment with higher-value replacement contracts.
• How difficult is it to replace your tools, equipment, and buildings? If you can replenish your workbench with a trip to the local hardware store, actual cash value plans are a great way to reduce monthly expenses. Research facilities, specialized medical practices, and other businesses that use rare and high-value items benefit from the increased payouts from replacement value policies.
• What other policies do you already have in place? In many cases, a large accident or loss will trigger multiple policies. An insurance agent can help you understand what your existing policies cover. Use this information to decide which valuation system works best for your business.

Insure Your Company offers commercial insurance packages that are customized for your business. Still not sure which policy is right for you? Contact our representatives for a personalized assessment of your commercial insurance needs.

As you grow your small business, you don’t just want mediocre employees who will put in an average day’s work, right? Instead, you want exceptional staff. You want talent that is eager to come into work every day. You need employees who are invested in your organization, brand, and industry.

By utilizing these key strategies to build your company culture, you’ll be able to substantially increase the odds that you’ll be able to attract top talent and keep that talent long-term.

Strategy #1: Define and Enforce Your Core Values

What’s important to your company as a whole? What core values do you want to shape your organization? It’s critical to begin shaping these values as early as possible in your company’s life. Once you’ve created them, enforce them! Make sure that you’re encouraging honesty and creating an environment that centers around those core values.

Strategy #2: Create an Atmosphere of Trust

Trust is one of the key elements in any relationship—and that’s particularly true of the relationship between an employee and their employer. You want trustworthy employees who will bring you key information: when they’re struggling, what they need to know versus what they do know, any personal problems that might be impacting their ability to complete their job, etc.

In order to create that atmosphere of trust, you need to be trustworthy yourself! Let your employees know that they can count on you by following through on your promises and providing them with key information when it’s relevant.

Strategy #3: Build Your Team

You want engaged employees at your business. In 2015, only about 32% of employees were actively engaged at work. Disengaged employees are less productive, less interested in what’s going on around them, and more likely to cause problems at work.

To avoid these challenges, look for opportunities for team-building. Eat together, play together, and show your team that they’re appreciated. The more you build up your team, the better they will work together—and the better the odds that they’ll give you their best.

Strategy #4: Provide Continued Learning Opportunities

Today’s candidates are constantly looking for opportunities to grow personally and professionally. Which means they are looking for employers who will provide them with those opportunities.

In the early days of your business, you may not be able to provide things like tuition compensation for your employees, but you can offer key benefits that will allow them to continue to learn. This can include supporting time off for learning opportunities, offering the chance to go to seminars and events, and paying for certifications for your employees.

Strategy #5: Offer an Interesting Work Space

If you want to attract a broader range of talent, consider offering something interesting at your business. You could consider offering something like a cool workspace that will intrigue the top talent in your field. For example, provide the chance to work with cutting-edge technology or offering a room filled with retro arcade games where employees can relax during their breaks. The space you offer your employees can create a big difference in their engagement and their desire to stay with your company.

Strategy #6: Create a Safe, Inclusive Work Environment

One of the most important elements in keeping your employees is a safe work environment where everyone has equal opportunities to contribute. If your employees don’t feel safe at work, they aren’t going to stay with you long!

Create an atmosphere where harassment and threats are quickly dealt with. Offer opportunities for employees of every race and gender. Open the doors for disabled employees. By offering an inclusive environment, you’ll expand your potential employee pool and make it easier to capture the talent you need.

Even in the earliest days of your business, it’s important to choose your employees carefully. If you need more help shaping your company, including selecting the right insurance coverage for your business, contact us today to learn how we can help.

Imagination isn’t just for kids.

Every business has a goal. In order to achieve your goal, you are constantly analyzing your results, reworking concepts and aiming to achieve a way to hit your goal and new levels of success for your organization. Being in tune with your imagination will thrust your business forward.

To think outside of the box, take constructive criticism, create new ideas and re-use old ideas in new ways is a success trait that will thrust your business forward. To make your imagination productive, You must organize your ideas ensuring that each idea is productive towards your organizations’ goal.

It is time to re-embrace your imagination and put it to work for the success of your business!

Check back on the blog or subscribe to our YouTube channel for new videos delivered every other week.

On June 2nd, InsureYourCompany.com sponsored the WCBS Small Business Breakfast in Parsippany-Troy Hills, NJ. The main focus of the breakfast was the Small Business Association (SBA) and how businesses can utilize its services to help grow and succeed.

The breakfast was hosted by WCBS Bloomberg business anchor Joe Connolly, and featured Linda McMahon, the current administrator of the SBA and a widely recognized advocate for women in business. In addition to discussing the SBA, Connolly and McMahon discussed how to grow your business, as well as small business regulations.

This was my first visit to the breakfast, and our first sponsorship. I enjoyed speaking to other business owners and sharing with them the services InsureYourCompany.com provides.

One thing I liked in particular was that McMahon started a business herself and went through the same experiences many small business owners struggle with today. She is now running the SBA and actually making it work for small business owners. Having a business owner running the SBA might be a good thing for business owners like us.

Check out the gallery below to see our photos from the event!

Hopefully you already watched my other video on explaining what Employment Practices Liability Insurance is. If not, what are you waiting for?

Coincidentally, I just started helping one of my clients through an issue where he had to fire an employee.  Watch my latest video to see how it plays out…

• Did you find this video informational and interesting?
• Are there insurance issues or other business issues you have questions about?

Tell me! We want to create videos about issues that you need help with. If we don’t know the answer, we have the resources to find the answer!

Technology Insurance Associates – unlike any other broker

Many small businesses and tax-exempt organizations that provide health insurance coverage to their employees now qualify for a special tax credit under the Obama health reform legislation that just passed. This credit is designed to encourage small employers to offer health coverage for the first time or maintain coverage they already have. If you pay at least half the cost of the health insurance (employee only) you might be entitled to a 35 percent credit of those premiums. This credit is effective now (2010). The credit increases to 50 percent in 2014. The IRS has all the information on how to apply for the credit on your 2010 tax return. This is a great opportunity to use your health plan to recruit and retain the best people for your positions. You can structure multiple plan designs and with the credit pay an affordable amount for coverage. Contact me for more info. alan@cgbins.com.

The Obama Health initiative makes provisions for dependent children to age 26. Currently issues come up as to what age carriers will cover these children. When they say to 23, is that through their 23rd year to their 24th birthday? All carriers provide you with a summary of benefits and that issue should be addressed in those documents. The new plan gives insurers six months to include this coverage. I have heard that the wording in the bill allows this to be delayed to 2014. Whatever the case it is prudent to check with your broker and the insurance carrier to find out exactly when your dependent child remains covered.

I have been selling employee benefits to employers across the US for over 12 years. It still amazes me that many of my clients and most employers think of the benefits as an EXPENSE for their company. Developing a benefits package to offer to your employees actually can enhance the quality of your labor force. If you use the benefits properly it can be an amazing recruiting and retention tool. I have shown employers how to offer a package that includes health insurance, dental, vision, long term and short term disability and life insurance. Incorporating all of these coverages and picking up the ENTIRE cost can not only save you thousands of dollars on what you currently have but going will enable you to be compliant to any current or future government regulation. An employer also has to make the employee more aware of the cost of the benefit. An annual statement of these costs in addition to the W-2 that is sent annually really provides the employee with an insight to how important they are to the employer. Taking the time each year to survey the employees with regards to the benefit programs makes all parties aware of what is truly important to both. I usually suggest that the survey be done mid contract year, this way the employer is aware of issues to be concerned about for the next renewal. You will be amazed at how beneficial bringing the employees in on the process truly is.

I have been selling New Jersey Employee Benefits and group health insurance to small and medium sized businesses since 1997. Each year I see the plan design change slightly; there was higher co-pay, a split co-pay, higher drug card, two tier drug card, three tier drug card, and Hospital deductibles, in network deductibles. During this period the rates were rising. It was a challenge to bring a plan to the employer that was a slight increase over last year. Well things have changed, there are very few insurance carriers now offering the plans. The ones that do have raised the rates so much that a thirty percent increase over last year’s is the norm. I sit at my desk wondering what is happening, I have no options for the employer any longer, the rates go up, the plans keep offering less and less benefits. I do not see people utilizing the services less, what I see are companies forgoing the benefits all together. Is this what the insurance carriers want? Do they want to make it so the only people that take the insurance are the very ill and wealthy? What are employers supposed to do? Their employees think it is the employer that is reducing the coverage or lowering their contribution to raise the rates. I have no answers, all I have are questions. The most important one I have is what is Washington going to do to address these issues? The bickering between the Democrats and the Republicans and an ineffective President only delays and stalls the issue. Seems to me the Insurance and Drug companies are in control. In the end it is the American worker that is bearing the brunt of this problem and the final resolution is not even flicker of light at the end of a very dark and long tunnel.

I wanted to share a story about one of my clients. He was expanding his IT staffing business and hired a female recruiter /salesperson. This salesperson was emailing and interacting with the client’s operations staff at their offshore operations center. The emails started to turn more and more inappropriate, in a sexual way. The client is not sure who initiated the inappropriate emails but he now sees himself on the other side of a sexual harassment lawsuit. Needless to say the legal costs are great and he is scared to let any of these employee go. There is an insurance product that can protect your company from this type of exposure, Employment Practices Liability Insurance (ELPI). EPLI covers a business against claims by workers of the company, that their legal rights have been violated. Protection is provided against many types of employee lawsuits, including claims of: Sexual Harassment, Discrimination, Wrongful Termination, Breach of Employment Contract, and many others. The policies will reimburse your company against the costs of defending a lawsuit in court and for judgments and settlements. The policy covers legal costs if you win or lose the suit.

To prevent employee lawsuits, educate your managers and employees so that you minimize the problems in the first place. Create effective hiring and screening programs to avoid discrimination in hiring. Post corporate policies throughout the workplace and place them in employee so policies are clear to everyone. Show employees what steps to take if they are the object of sexual harassment or discrimination by a supervisor. Make sure Supervisors know where the company stands on what behaviors are not permissible. Document everything that occurs and the steps your company is taking to prevent and solve employee disputes.  Contact us if you would like to learn more about employment practices liability insurance.