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Get the Most from Your Employer Health Care Program

With the end of the year fast approaching, many employees are starting to become anxious. It’s that time of year again, the time when they get to tweak their health insurance benefits. While this may be exciting to some, the responsibility to choose the right health insurance plan can be a source of tension for others.

There are many reasons for this. Personal circumstance comes into play, including additions to family. Since the days when employers offered either a low-cost HMO or an expensive PPO, the maze of health insurance options has increased significantly. With health insurance costs on the rise, it’s more important than ever to make sure you are getting the most coverage for your money. 

Here are 5 mistakes to avoid in an open enrollment benefit session: 

Mistake #1- Saying No to Health Savings Accounts

Less than 20% of those given the option of opening a Health Savings Account choose to take advantage of this potentially valuable opportunity. If you break it down, these turn out to be the equivalent of free money, and can really give you a leg up towards paying for medical expenses. 

Mistake #2- Picking the Cheapest Health Insurance Premium

It’s easy to look at a low cost and choose the cheapest health insurance plan because we may think it's all we can afford. What many fail to realize, however, is that low-cost health insurance premiums often offer significantly less coverage. This could lead to big trouble in the long run if your health care needs outweigh the coverage available. 

Mistake #3- Not Doing Your Health Insurance Research 

Nine out of ten people renew their old health insurance plans for the upcoming year. This isn’t always a bad thing, such as when your needs haven’t changed and you’ve researched the available options. However, even if your health insurance needs are the same as they were last year, review the plans available to make sure that nothing has been changed on their end. Benefits and premiums may not be the same as last year, so make sure that you know exactly what you’re signing up for. 

Mistake #4- Under-Buying

Under-insuring is one of the worst mistakes you can make, as once you’ve signed into a health insurance plan, you’re locked into it either until there is a change in family demographics or open enrollment comes up again. That’s it. There’s no in between. It would be nice to think that by the time you need it, you’ll have thrown enough money into your Health Savings Account to cover the cost of the premium, but there’s no guarantee. You could find yourself paying a large sum out of pocket.

Mistake #5- Over-Buying Health Insurance Coverage 

Throwing a high premium at the possibility of a life altering health-related disaster may provide you with quite a safety net, but financially it could turn out to be an unwise move. This is not to say that choosing the cheapest health insurance plan is always the best option for an individual with a clean bill of health, as we are all at risk for accident or unexpected illness. Finding something in the middle is ofen sufficient. Consider a high deductible with a limited network to keep premium costs low while providing coverage against a major health care expense.

Yes, open enrollment can be a source of tension, but if you play it right, as most people don’t, you’ll find that next year’s open enrollment isn’t the confusing maze that some make it out to be. Open enrollment for health insurance coverage is there to give you options that can help you. Don’t pass up a good opportunity to make a smart move. 

Do you need personal health insurance, or better health insurance for your employees?

We can help. Please contact us today: 800-947-1270

Life insurance coverage might not be the first thing you think of when considering your financial planning.  However, it is an extremely important component of that planning.  If the unexpected happens, the people you leave behind could be left with the very same financial hardships you’ve been working so hard to prevent, especially if you haven't put the proper life insurance in place.  Sadly, as you'll see from the data below, most people fall into one of two categories: uninsured or underinsured.

Survey: 39% Have No Life Insurance

If life insurance hasn’t made it to your priority list, you aren’t alone.  An August 2012 survey from Harris Interactive found that 39% of respondents had no coverage.  Most people thought it would cost them too much, but many hadn’t even considered whether they need it.  In short:

Of the 39% with no coverage:

• Costs too much:  45%
• Haven’t thought about it:  23%
• Don’t think they need it:  20%
• Partner provides coverage:  6%

61% with Life Insurance are Open to Risk

People who had life insurance coverage had not eliminated their risk, either, though.  How much coverage is needed is based on many variables.  There are the immediate expenses, of course, such as funeral expenses.  Then there are longer-term considerations, such as mortgages, college expenses, and inflation. 

The survey found that 61% of respondents had too little coverage based on a rule of thumb that a million dollar policy would be sufficient to cover a median household income of $50,000.  Most of these respondents hadn’t really considered how much life insurance would be needed to take care of those left behind when all the variables are considered.  

Of the 61% with too little coverage based on their income:

• $100,000 of coverage or less:  53%
• $100,000 to $250,000:  20%
• $250,000 to $1,000,000:  15%
• $1,000,000 or above:  2%

(You can see an infographic of this data here.)

As you can see, most Americans are woefully unprepared or under-prepared when it comes to life insurance.  But it really doesn’t have to be this way since these policies can be very affordable and flexible. 

To protect the work you’ve done in life, and protect those you leave behind, talk with an insurance adviser about your specific situation.  They can help you consider all the variables and calculate what amount of life insurance you should incorporate into your financial planning.  

Need Help Understanding Your Life Insurance Options?

If you'd like help reviewing your life insurance coverage, please contact us today for a free, no-hassle consultation.  

For most small businesses, workers compensation insurance costs can eat up a fair percentage of their income. While this type of coverage is essential, especially for riskier professions, there are a few ways to minimize your workers comp insurance expenditures without sacrificing the level of coverage necessary for your enterprise.

Here are some helpful tips to keep your costs under control:

Correctly classify your employees

Take a look at what you are paying in workers comp insurance per employee, and then ask yourself if all of these employees require the same level of coverage in relation to the riskiness of their profession. For instance, a typical office manager is far less likely to require workers compensation payments than a typical carpenter. Most workers compensation insurance companies charge different rates for these professions accordingly, so make sure that you aren't being overcharged for workers compensation insurance that you don't need. 

Familiarize yourself with relevant OSHA safety standards, and train your employees accordingly

As they say, an ounce of prevention is worth a pound of cure. OSHA regulations exist for a reason, and one should always be careful about staying within the letter of the law in this matter. If you are unsure of the relevant standards, your local OSHA safety office can offer clarification. Make sure that your employees are well aware of their rights under OSHA statutes, and what they need to do in order to remain compliant. A workforce that is familiar and compliant with the basic safety standards of their industry is one that is less likely to utilize workers compensation insurance over the course of their tenure.

Ensure that all tools, equipment, and grounds are safe/in good working order

Make it a point to periodically check any motorized tools for dirt, debris, or other potential hazards, and have your employees periodically check things like brakes, fluid levels, and other vehicular aspects that can potentially pose a safety hazard if not up to par. Your workers compensation insurance is less likely to be needed if all tools and vehicles are in proper working order, so make sure that your employees understand that it is part of their regular work duties to clean, maintain, and lubricate their tools, vehicles, and work stations alike. You should also make sure that any physical grounds (such as your office, parking lots, and walkways,) are easy to access, free of debris, ice, or snow, and are as safe as possible. Workers compensation insurance will need to be tapped into if someone hurts themselves while on your property, so bear this in mind as you go!

Address claims quickly and compassionately

Whenever the unthinkable happens despite the best laid  plans, you can help to minimize the impact on your workers compensation insurance rates in a number of different ways. Make sure that the employee gets the medical help they need immediately, and make sure that their expenses are paid accordingly. Minimize the need for lawyers to get involved, make it as easy as possible for the employee in question to recover and return to work, and show genuine concern all the way through. This should help keep your workers compensation insurance rates reasonable throughout the life of your business.

In short, make sure that you look over your workers compensation insurance rates closely, itemize what you are paying per employee and why, and take all necessary steps to help your employees realize that their safety is priority number one!

Need help with reducing workers compensation costs? Contact American Insuring Group today to learn more.

"Insurance deductibles could have added significant costs to Pennsylvanians already struggling to clean up and rebuild after Hurricane Sandy," Corbett said. "Insurance companies have deployed catastrophe teams to Pennsylvania and they have been advised that hurricane deductibles should not be applied to any homeowner's insurance claims.""

For the full article, click here. 

When looking for commercial vehicle or van insurance in small to large towns from Reading to Philadelphia and beyond, there are a few points to consider, and some tend to get lost in a potential insurance minefield – here are a few frequently asked questions many ask when searching for the right insurance for their small business.

Is it hard to insure a vehicle for commercial use?

Not really. Anyone can apply to insure a commercial vehicle, (for example, a van), but they will find they are restricted when it comes to personal or private use of that vehicle. As long as the vehicle falls under commercial use, like delivering goods or providing a service (say, if the owner is a builder just using the van to get from A to B) then it is much easier to obtain insurance than if the applicant also wanted the vehicle for private use.

Define ‘commercial vehicle’?

Not sure if your vehicle falls under the right guidelines? Here are the main types of commercial vehicle:

• Goods-carrying vehicles: this is the most common type of commercial vehicle, used to transport products or necessary items for services. This can range from small cars and vans to larger trucks.
• Passenger-carrying vehicles: this applies to buses, coaches, and hire cars.
• Forestry and agricultural vehicles
• Special construction vehicles: vehicles that serve a particular purpose are known as ‘special types’ of vehicle and apply to ambulances, fork-lift trucks, and cranes.

What about windshield coverage?

Windshield coverage usually comes down to the insurance company and the level of coverage taken out, but this type of coverage is typically available for commercial vehicles as a policy extra, under "Comprehensive" coverage.

How can I lower my van insurance premium?

There are a number of ways that some companies do this, but here are three ways for customers to reduce their premiums:

• Usage - how the vehicle is used can lower your insurance premiums.  If you park the van at one jobsite for the day will be a lower cost than if you travel to mutiple locations during the day.
• Safe drive Badge – a simple sticker on the back saying ‘How’s my driving?’ with a number on the back (preferably to the insurance company) will also reduce premiums. This is because anyone driving dangerously will obviously be reported by other drivers, hypothetically making the driver in question more cautious about their driving.
• Driving Convictions – this is a simple one; don’t acquire any speeding convictions. Insurance companies tend to ramp up the premiums for people who have previous driving convictions. 

Get Help - Get the Right Commercial Vehicle Insurance for Your Car, Van, or Truck

Workers Compensation Insurance - A Potential Minefield

Purchasing workers compensation insurance can be a potential minefield for some businesses, who often don’t know where to start and can feel like they’re going in blind without a workers comp specialist to guide them along the way. It can seem like a daunting, upward struggle, especially since some insurance companies and agents won’t even consider writing workers compensation insurance – and they have their reasons - but with the right insurance broker, applicants can get through the process scratch-free. 

Choosing the Right Insurance Broker

It’s also important to note that purchasing workers compensation insurance from a business insurance agency with several markets available, is the best way forward for business owners looking for this type of insurance. At American Insuring Group LTD, we represent a number of A rated insurance companies that specialize in Workers Compensation insurance.  

Never Let Your Workers Compensation Insurance Lapse

The most important thing for business owners to remember is to never let their workers compensation insurance lapse, as that could lead to disastrous results. Although financial issues may seem dire, it’s likely clients will pay the price if they let their workers comp lapse, in the form of considerably higher premiums on re-application. The other obvious advice is to always pay premiums on time, as late payments could cause standard carriers to write off a client with a non-renewal notice – almost as bad as a lapse in coverage.

Re-application

If workers compensation insurance is allowed to expire and business owners go through the re-application process, they should be aware it’s not going to be easy – they’ll likely be bombarded with seemingly endless documentation in order to explain the expiration in the first place. Anyone finding themselves in this situation would be wise to save their sanity and consult an insurance broker or expert to help get them through the paper trial and advise them on the situation.

Claims can also be an issue. If a business has filed numerous claims with an insurance broker, then they are likely to get issued with higher premiums; that’s just the way insurance, as a whole, works.

Conclusion

When applying (or re-applying) for workers compensation insurance, business owners should work closely with an insurance broker. Ask questions, and be sure to find a broker who instils confidence. One last thing to bear in mind is the fact that all workers comp quotes are custom, with no ‘big rate books’ like the ones life insurance agents are familiar with. 

Get Help with Workers Comp Insurance

Have additional questions about workers compensation insurance? Contact us, or request a free, no-obligation workers compensation insurance quote. We'll compare policies and prices from competing carriers to make sure you get the right coverage at the right price.

Is Affordable Care Affordable, or an Incentive to Raise Health Insurance Premiums?

A section of The Affordable Care Act requires health insurance providers to spend at least 80 percent of dollars they receive from premiums on patient care, or be forced to send a rebate to patients. This may seem like a good deal for patients, but health economists say the provision can only lead to more expensive insurance.

Economists reason that the provision merely provides an incentive to raise premiums, instead of encouraging companies to control costs. While patients may be thrilled to receive a rebate in the mail, this rebate will be a small consolation for the inflated premiums patients will have to pay as insurers let spending balloon.

Health Insurance Rebates Lead to Higher Premiums

According to Peter Suderman's Hit and Run blogpost "ObamaCare's Health Insurance Rebates May Make Insurance More Expensive," insurers rebated slightly over $1 billion this year, at an average of $151 per customer, in letters that clearly stated the rebates were coming as a result of reforms made under the Obama administration. This politically sound move lets patients know exactly where their rebates are coming from. What it doesn't tell them is that the rebates might cause premiums to rise.

"It's easier to cover someone's health costs on 80 percent of $1,000 than it is on 80 percent of $100," Suderman writes, "and because insurer profits and other administrative costs must come from the remaining 20 percent, there's a larger pool from which to draw profits and business expenses." In other words, insurers will be motivated to raise their premiums in an attempt to cover expenses.

Economists Doubtful of Benefits

NPR's Planet Money reported on the likely outcomes of the insurance rebates provision. Reporter David Kestenbaum interviewed six health economists. "No one thought the provision would do much good," he said, "and several thought it could be harmful." Among the economists interviewed by Kestenbaum was Jonathan Gruber, an ObamaCare architect and supporter.

Skewed Coverage? NPR Story Differs from ABC, CBS, USA Today

The press has widely lauded the health insurance rebates. ABC News reported that the law is "aimed at holding health insurance companies accountable for how they spend the money collected through premiums." CBS and USA Today ran similar stories, equally positive about the program that would force insurance companies to spend more on patient care or send out rebates. None of the articles mentioned that premiums would likely rise as a result of the provision. NPR's Planet Money was the first news platform to explore the potential pitfalls of the rebate program, and stumbled on a major flaw: more money spent on patient care will logically result in higher premiums.

Need help in acquiring a sensible health insurance plan for yourself, your family, or your employees? Click below to learn more about your health insurance policy options.

Searching for Commercial Vehicle Insurance?

When looking into insuring a company car, van, or pickup, you will find commercial vehicle insurance and regular auto insurance are entirely different animals. But although the products available differ greatly, the basic principles apply when it comes to finding the best policy for a particular small business – be it auto insurance for a private, or commercial vehicle.

A commercial vehicle insurance policy normally is required when a van or pickup truck is used in a trade or occupation to earn an income.  Be careful: most personal auto policies exclude business use for these types of vehicles!  A private passenger auto can be insured on either a personal auto policy or a commercial auto policy.  The difference is commerical policies usually are higher priced due to the business usage. Most insurance companies do not allow personal insurance on a vehicle that is used by employees.

As long as this is understood, finding a product that works best for an individual company’s needs should be fairly simple. In the same way that the Internet holds many of the answers when it comes to finding affordable private vehicle insurance, the same can be true when looking for the most fitting commercial vehicle insurance. It’s a great starting place, and many businesses can learn the basics with a simple search and compare website. 

Research Online

Many auto insurance providers also offer commercial vehicle insurance, but going there in person could take much longer than doing some basic research online.  This is because commercial vehicle insurance quotes can take much longer to prepare than quotes for regular car insurance. Therefore, consider searching online first to become educated about business vehicle insurance policies and companies, but understand that receiving expert advice is very important before making a purchasing decision.

Seek Advice Before Buying Insurance for Your Commercial Vehicle

For people who are new or inexperienced in buying commercial vehicle insurance, it is especially wise to seek advice from others who have gone through the same process. This will help to give an idea about how the application process works, which product is best, and also things to look out for or hidden traps NOT to fall into.

The claim process, for example, should be quick and easy – so choosing the right policy shouldn’t just come down to price. If an insurance company is slow and cumbersome, this boils down to money lost from any potential business.

An insurance expert can also give advice for those who are unsure of which company to pick for their commercial vehicle insurance, and will be able to help compare various quotes to find the best and most suited for an individual business. However, make sure the insurance agent is not tied to a single company who will pressure them to recommend their policies over others.

Check Out All the Insurance Options

Depending on the company and the number and types of vehicles a business owner wants to insure, there may be more options or deals available, so look out for that. Companies are also known to offer discounts for particular business models or vehicle usage, so be sure to get multiple quotes covering multiple insurance brands before making that important final decision. 

Make Insurance Competition Work for You

A knowledgable insurance agent offering a variety of competing insurance companies is well positioned to recommend the right coverage for your commercial vehicle at the best price. That's why American Insuring Group offers policies from several competing carriers. We're well-positioned to find you the right policy at the right price. 

Contact Us today for a free, no-hassle consultation.

Your Stock is the Life-Blood of Your Business

Many businesses are dependent on their stock; without inventory, there can be no sales, and without sales, there is no income, so insuring one's inventory can be critically important. Depending on the type of business, a wide array of products and quality stock could be at risk from unforeseen disasters such as fires or flooding. So, it makes good sense to take out a commercial property insurance policy covering the entire range of your inventory. 

Keeping Up-to-date: Time to Reassess?

And that is precisely what many businesses do; however, not all of them properly reassess their needs when renewing these policies. Has your stock changed in any way? Is there more of it? Less? New products? Has the business grown since the policy was initialized? It’s wise to keep track of what an individual property insurance policy actually covers, and keep it up-to-date as your business grows and changes.

For example, a business originally set up to repair electrical items may have more recently found an ideal niche for selling electrical items to customers. The original policy that was set up would have been sufficient at the time, and was suitable to cover the spare parts the business needed to make repairs, but now it has a much larger inventory of products which it is also selling, which may not be covered under the original policy.

In much the same way, a business could change the way it conducts its services. The original commercial property insurance policy could have been set up just to cover a shop and its products within. But since that time, the business could have started doing home deliveries, in which case the products in-transit en-route to the customer are not covered by the out-of-date policy.

Be Vigilant With Your Inventory Insurance

The lesson here is to always check the small print. Businesses should regularly be aware of any changes they make to their business and be aware if it affects their policy in any way. This also includes things like seasonal changes – businesses may stockpile before Christmas or Easter. Insurance policies should cover these stock rises at specific times of the year. 

Contact the Insurer - Get the Right Insurance for Your Commercial Property

If a business decides it does not have sufficient coverage, or there is a liability gap somewhere in the policy, they should first contact their insurer. It’s very possible the insurer could adjust the policy with little or no hassle, without any complicated papers to fill in.

If, however, the insurance company is unable to cover any changes to a business, the best course of action would be to search for a new commercial property insurance policy covering all the new needs of the business in question. It’s very important to make sure these types of property insurance policies are sufficient for the specific needs or your business. 

Need Help With Your Commercial Property Insurance?

Please call or email us any time for help. We'll guide you through the options and help you find the perfect business insurance coverage to meet your needs.

What is Commercial Property Insurance?

In a nutshell, it’s a type of insurance policy used to cover a commercial property, which spans a broad spectrum of business environments and situations.

Commercial property insurance protects a property in much the same way as domestic property insurance would, and financially protects against perils including fire, natural disaster, and theft, paying out for any losses or damages to the property.

Commercial property insurance is widely available and most commercial properties will carry it, including most manufacturers, restaurants, retailers, charities and non-profit organizations, and service-oriented businesses. In addition, these businesses are usually able to write off the cost of their commercial property premiums as expenses.

Additional Commercial Property Insurance Policies

There are many more additional coverage plans available to purchase for a business property, meaning owners can generally tailor these packages to suit their individual business needs. The most common are:

Boiler and Machinery Insurance

This type of insurance is also referred to as “equipment breakdown” or sometimes “mechanical breakdown coverage”. It provides cover in the event of an accidental breakdown of machinery, boilers, and equipment, and will pay for any repairs or replacements needed, as well as reimbursing for property damage; an example of this would be fire damage to computers.

Debris Removal Insurance

This covers the cost of clearing up debris from a property after a fire, tornado, or flood. For example, in the worst case scenario, a property has been burnt to the ground, leaving a pile of ash and debris which has to be cleared up before any more steps can be taken – this costs money. Property insurance will cover the cost of rebuilding, but debris removal is a whole other ball game.

Builder's Risk Insurance

This type of coverage will protect a property while it is being constructed, from things such as wind or storm damage. Partially-constructed buildings are particularly vulnerable to weather conditions so it is wise to take out a builder’s risk insurance policy.

Glass Insurance

This covers any broken windows or plate glass windows, shop displays etc.

Inland Marine Insurance

Inland marine insurance is used to cover property in transit and property on business premises that does not belong to the business owner; for instance, fire damage in a dry cleaning business.

Business Interruption Insurance

This type of insurance will cover any lost income a business faces when it is unable to operate due to property damage, or loss. For instance, a flood could halt a business for two months – business interruption insurance would pay for rent, taxes, salaries and net profits during that time.

Ordinance or Law Insurance

Ordinance or law insurance will cover demolition and rebuilding costs once a building has been partially destroyed. The general rule is, if more than 50 per cent of a business needs to be rebuilt, it should first be demolished and then rebuilt, staying true to current building codes. Standard commercial property insurance will only cover the cost of replacing the building, and does not cover upgrades.

Tenant's Insurance

Tenant’s insurance is common for commercial leases. Renter’s commercial policies usually cover any damages to improvements made to a rental space, along with any damages caused to the building from employee negligence.

Crime Insurance

This type of insurance will cover robbery of money, burglary, theft, stock, securities and fixtures from outsiders and business employees.

Fidelity Bonds

A bond company can cover any losses caused in the unlikely event of a bonded employee's theft of business money and/or property.

Commercial Insurance Questions?

We're happy to help you with all your insurance needs for both business and home. Should you have questions about the right Commercial Property Insurance for your business, please contact us.