From our One Man/Woman Artisan and Contractor Policyholder to our Large Multi-Million Dollar Company Clients, the world of business insurance never ceases to amaze us and never ceases to surprise our clients. We are very excited to help every business in the area find out exactly how their policies work to their benefit.
These are some of the items that first come to mind and they are only a small portion of items to look for when shopping for Business insurance.
One of the primary items business owners need to know is that for the most part business (commercial) policies are paid in full. There are companies that will set up payment plans, and if not the agency will generally have agreements with finance companies to help facilitate the insurance transaction.
MINIMUM EARNED PREMIUMS: A very important thing to know is “Minimum Earned Premium”. This is generally the smallest amount of money a company is walling to accept for writing a business insurance policy. Minimum Earned Premiums are generally speaking, set to make sure and cover any expenses for writing the policy and to make sure they are solvent to pay immediate claims. This also helps by discouraging people from simply taking policies out to acquire certificates of insurance needed, then cancelling policies shortly after. If a policy is cancelled the company who has a Minimum Earned Premium would return only the portion not used. This is generally called. The Unearned Premium.
We must keep in mind that policies are contractual agreements. Generally there are three types of cancellation ways that a company may take.
A Flat Cancellation can occur at the effective date, if an insurance company has not assumed any liability. The insurance company would then return the premium in full.
Pro-Rated Cancellations occurs when a policy is cancelled within the policy term. The portion of the premium returned is called the Unearned Premium. The Unearned Premium is returned for the portion of time you waived coverage.
This is determined by the insurance company only and serves to deter early cancellations. This is simply an additional percentage kept by the insurance company over and above the Pro-Rated Amount.
Let’s look at a few risks examples:
Minimize Your Business Risks
- Premises and Operations
- A customer at the store you own trips over a fixture and sustains a significant injury from the fall. Bills for the hospital visits are submitted to you for payment Business Liability Insurance can cover these charges, as well as the business owner, should he be sued by the customer for negligence.
Products and Completed Operations
The deck you built a year ago was flawed, causing a new building owner fiscal disaster. A legal notice appears in the mail informing you of a lawsuit. The case goes to court and your former client wins. Business Liability insurance can handle the defense costs and, if it comes to it, the legal damages for which the policyholder is responsible.
Cyber Liability and Data Breach
You don’t know why or how, but your computer system has been hacked. And now all your confidential business and customer data could be online, free to trade and impersonate. The least of your worries is finding the source of the data breach and repairing exposed computers. Your focus is now on damage control and possibly recovering stolen data. Fortunately, your Cyber Liability insurance coverage can help provide you with legal and forensic assistance, as well as free data security risk management services for your customers.
Employment Practices Liability
If you’ve been in business for a few years or operate in an industry with high turnover rates, you’ve likely hired many employees, whether temporary or full-time. The truth of the matter is that any of these employees can bring legal action against your business at any time. Employment Practices Liability insurance can help cover your business entity, directors, officers and employees if you are accused of wrongful termination, harassment, discrimination, and other employment-related offenses.
Where You Do Business
- Building Coverage
You find success in your store, office, factory, and/or other locations. Then a major fire renders your place of business unsafe for you and your employees. Business Property insurance will make certain your damaged building is repaired or rebuilt quickly so you avoid losing income and preserve both the equity and your future.
Business Personal Property Insurance
The loss of any property you own or create for sale affects your bottom line. If a windstorm damages any of these items, Business Property insurance can help you replace everything from computers and inventory to equipment and tools.
Insurance provides coverage to keep your business operating until goods and services are being produced again. This insurance not only replaces lost business income while the office and its contents are being rebuilt and replaced, but it can also cover the operating and payroll expenses necessary to keep you and your business on your feet after a loss. You can even elect Extended Business Income Coverage, which helps replace lost business income for an extended period of time after your business operations resume.
Theft isn’t your only concern
- Employee Dishonesty
- Money and Securities – Inside/Outside
- Money Orders and Counterfeit Paper Currency
- Forgery and Alteration
Companies as well as individuals are realizing the need for Cyber Insurance. Insurance companies specially in the commercial market due to items such as better than usual claim experience, better definition of coverages, trending higher demand and too many insurers and reinsurers chasing the same business, have seen a decline in some target rates.
One area where there seems to be some consistency in premium increases is the area of commercial lines cyber insurance, and actuaries are taking a closer look.
What is cyber insurance?
Cyber insurance is that area of the insurance market that covers an insured in the event of data breach. Intentional of accidentally. It can cover the actual financial losses, business interruption and anything else an underwriter may deem necessary to put in the policy, such as defense or investigations.
How much is Cyber Insurance? Right now, cyber risk analysis is a difficult task for it is impossible to address all challenges in the short term. Actuaries that are trying to price the product suggest a kind of variable science. cyber insurance is not necessarily a “New Thing”. One of the biggest misconceptions about cyber insurance is that it’s a new specialty area in the industry. The truth is that cyber planning remedies date back to the late 1990’s.
It first began from network liability to privacy and data breaches in the 2000s. Due to the fact that data breaches in the past few years have increased rapidly; the insurance industry has had the opportunity to fill a need and cover more clients.
According to numbers given by Verizon in April of 2015, cyber incidents can be broken down into the following categories:
Miscellaneous errors 29.4%
Insider misuse 20.6%
Physical theft/loss 15.3%
Web application attacks 4.1%
Denial of service 3.9%
Cyber espionage 0.8%
Point-of-sale intrusions 0.7%
Payment card skimmers 0.1%
What industries are affected?
Health care 21%
Financial services 14%
Cyber insurance is surely expected to be an even bigger topic as time goes on. While the industry is anticipating high premium growth, underwriters are still working on improving, to sustain the claims that will come.
Although of Insurance carriers such as AIG, ACE Chubb, Zurich and Beazley are writing it, some insureds are looking to buy more cyber insurance than current insurers of the business are willing to write. Leaving an opportunity for additional insurers to try to get into the market. Insurance companies must consider other correlations of potential cyber-related events that may not be visible in the limited historical data. This effect could be disastrous to and insurance company.
It is important that first-time cyber insurance buyers understand what they’re purchasing, and what to look for and avoid when they purchase a cyber insurance policy. These policies can be very complex and no tow policies are the same.
ADVANCE PERSONAL PLANNING RESOURCES:
PERMANENT LIFE INSURANCE PLANNING
- CHARITABLE GIVING
- EXECUTIVE BONUS PLAN
- FAMILY BUSINESS PLANNING
- IRA DISTRIBUTION REVIEW
- PLANNING FOR SPECIAL NEEDS
- ESTATE ANALYSIS
- SPLIT-DOLLAR LIFE INSURANCE
- BUY AND SELL AGREEMENT FUNDING
- KEY PERSON INSURANCE
- SUPPLEMENTS EXECUTIVE RETIREMENT PLAN (SERP) FUNDING
The Attentive HEALTH & WELLNESS plan is a Self Insured Medical Reimbursement Plan (“SIMERP”) with a wellness component.
It is a subscription service that is an employee benefit as part of an IRC 125 plan.
Your subscribing employer also gains considerable advantages per year per participating employees.
The employees receives the opportunity to purchase supplemental benefits, and the employee participates in the plan.
Participation in the plan allows for going to the online dashboard with several choices of benefits. They include telemedicine, on-call nursing consultation, and many health-related services along with the Mayo Clinic 24aLife program, all with no co-pay. The amount of employee contribution is reimbursed to the employee on a pre tax basis if that employee makes use of the dashboard and its benefits at least 4 times a year.
Our Partnership with Sure Benefits Corporation which provides the Attentive Program:
Attentive Health & Wellness has made a commitment to partner with employees to become healthier and more educated about health decisions they make on a daily basis. We are also committed to help employers make informed decisions about the significance of costs and loss of productivity due to illness and lack of physical health. We focus on educating and guiding employers through the process of how to implement and maintain a successful SIMERP with a wellness focus.
Research has shown:
People who exercise earn, on average, 9% more than their counterparts.
People who are not in shape make less money.
Obese people earn on average 18% less
Those who are overweight have 25% less family income………
Our program is an ERISA (Employee Retirement Income Security Act of 1974) qualified Self-Insured Medical Expense Reimbursement Plan (SIMERP) that focuses on the benefits of a group wellness plan with an employer sponsored medical plan. By combining these plans and pre-taxing them under a Section “125” Cafeteria Plan, it creates a tax savings for each participating employer and employee. The program is on a voluntary basis for each employee. To participate, each participating employee mustconfirm they currently have medical health insurance through their employer or their spouse’s employer.
Our program is a Health Plan-Related, Participation-Only wellness plan, meaning all employees have to do is participate—not achieve a particular health or wellness goal. It is designed to promote healthier lifestyle choices among employees and their family members. To remain compliant within the program, the employee completes at least four activities per plan year. From the pre-tax savings, employees accumulate a “Wellness Reserve” that they can use to elect voluntary/ancillary benefits without reducing their take home pay.
Since the program is set up as a Self-Insured Medical Expense Reimbursement Plan, the employees are eligible for a reimbursement of premium as specified in the SIMERP plan documents. To qualify for reimbursement, all benefits under the wellness plan must be 213(d) compliant.
Employers also benefit from the tax savings generated by permitting the employees to pre-tax this program. Employers see a reduction in claim value and costs, mitigation of the risks related to future disease and conditions. Our data shows a reduction in claim dollars on average of $1,400 per participant over a three-year period. Employees will be healthier, happier, have more energy, and improved overall health
THE ATTENTIVE HEALTH & WELLNESS PROGRAM (AHW) is based upon research into existing IRS codes and regulations. The plan is a robust Self-Insured Medical Expense Reimbursement Plan with a wellness emphasis that has been validated by the GE/Intel Validation Institute to be 80% – 90% reliable in pre-disease predictive analytics. As health costs are rising and outcomes are poor (sicker populations), those managing the claims and workforce populations are seeking solutions.
The value of the Attentive SIMERP wellness program to the employee is a superior wellness program that offers medical care along with the ability to buy valuable supplemental benefits without lowering their take home pay. A wellness reserve is created by pre-taxing the wellness plan according to IRS regulations. The result is a tax savings called a wellness reserve. The reserve averages 150 dollars per month or 1,800 dollars per annualy to purchase ancillary products such as whole life with a cash value, GAP insurance, critical illness, accident, short term disability, hospital, cancer, GAP covering high deductibles, or other value-added benefits after tax. The SIMERP provides the opportunity for a reimbursement of medical expenses as defined under the 213(d) definition of medical expenses. The SIMERP specifies what can be reimbursed, how much can be reimbursed, and who qualifies. The reimbursement is according to IRS guidelines for medical care reimbursement. The participation is incentivized by the allowable reimbursement and supplemental benefits available from the tax savings generated by participation.
The value to the employer is the ROI that comes from a Section 125 Cafeteria Plan that results in an average FICA savings of 550.00 dollars per annum per wellness participant. There is a 1-2% reduction in total expenditures from a decrease in claims from employees using the wellness benefits. This translates into 1,400 dollars per participant over a three-year period derived from mitigating population health risk management. Results drive reduced claims—68% of callers to our doctors, RNs, and health coaches result in a reduced level of services saving time and money; alternative care includes self-care options 29% of the time avoiding all costs; 72 percent of likely ER visits were mitigated by more appropriate care. A healthier population with less sick days, reduced benefits costs and more flexibility to be creative with savings (contributions to 401k) all add value to attracting and retaining employees.
AHW TOOLS PROVIDED SELECT LIST
Personal Dashboard delineating a wellness program for diet, nutrition, eating profile, stress,
Lab records, medical history including family
Personal medical records, vaccinations, lab results and medical information
120 Professionally guided courses in 15 areas of lifestyle and health improvement
Connects to personal data devices
Medical Services available 24/7 at $0 copay
RN access for diagnostic care – triaging for appropriate care
MDs via Telehealth—serving the urgent care needs of members including face-face consulting and writing of prescriptions with Doctors
Specialist collaboration and primary care physician as needed
No wait time or call back
Geolocation within the APP to provide procedural costs and facility locations for procedures
Tele – Behavioral health access to Master’s level counselors and telephonic therapy sessions as needed.
Many extras aside from diet, nutrition, stress reduction, exercise, it is an INTERGRATED TOOL
Strong incentives motivate individuals to be accountable for their health. The program is about behavioral modification and leading employees to make better health and lifestyle choices. Statistical reduction in claims, reduced health risk management costs, and healthier outcomes result in healthier and happier employees. Incentivized benefits without the need to reduce take-home pay attract quality employees and less turnover. Employer saves on FICA taxes, has reduced claims, and provides increasing benefits.
ATTENTIVE PROGRAM INFORMATION
THE ATTENTIVE HEALTH & WELLNESS PROGRAM (AHW) is a Self-Insured Medical Expense Reimbursement Program (SIMERP). It is based on research into existing IRS codes and regulations. As health costs are rising and outcomes are poor (sicker populations), those managing the claims and workforce populations are seeking solutions. SIMERP is a solution. The plan is a robust wellness program. The GE/Intel Validation Institute validates the program to be 80% – 90% reliable in pre-disease predictive analytics.
VALUE TO EMPLOYER – The value to the employer is the ROI that comes from a Section 125 Cafeteria Plan. That results in an average FICA savings of $550.00 dollars per annum per wellness participant. There is a 1-2% decrease in total health related expenses. This results from a decrease in claims from employees using the wellness benefits. That translates into $1,400 dollars per participant over a three-year period derived from mitigating population health risk management. Results
drive reduced claims. 68% of callers to our doctors, RNs, and health coaches result in a reduced level of services. That saves time and money. Alternative care includes self-care options which 29% of the time avoid all costs. 72% of likely ER visits were mitigated by more appropriate care. A healthier population with less sick days, reduced benefits costs and more flexibility to be creative with savings (contributions to 401k) all add value to attracting and retaining employees.
VALUE TO EMPLOYEE – The Attentive wellness program offers the Employee a superior wellness program with two key benefits. They are a.) medical care; and, b.) the ability to buy valuable supplemental benefits without lowering their take home pay. A Wellness Reserve funds the supplemental benefits. This Wellness Reserve is created by pre-taxing the wellness plan according to IRS regulations. The result is a tax savings which becomes the Wellness Reserve. The Wellness Reserve averages $150.00 dollars per month; or, $1,800.00 dollars per annum to buy ancillary products. The ancillary products include whole life with a cash value; GAP insurance covering high deductibles; critical illness; accident; short term disability; hospital, cancer policies; or other value-added benefits after tax. The employer provides a Preventative Reimbursement according to IRS guidelines for medical care reimbursement. Employee participation is incentivized by the allowable reimbursement and supplemental benefits available from compliant participation.
AHW TOOLS PROVIDED – An online Personal Dashboard for the
Wellness Participant. This integrated tool delineates a wellness program for diet, nutrition, eating profile, stress, Lab records, medical history including family Personal medical records, vaccinations, lab results and medical information. The self-guided and professionally guided program Connects to FITBIT Medical Services; is available 24/7 at $0 copay, with RN access for diagnostic care – triaging for appropriate care; MDs via Telemedicine—serving the urgent care needs of members. Which includes face-face, consulting and writing of prescriptions with Doctors, with $0 copay! There is specialist collaboration and a primary care physician as needed. No wait time or call back just schedule an appointment. Also included in the employee’s benefits is a 24aLife Mayo Clinic program. It includes “12 Habits of Highly Healthy People” a guide to implement meaningful and permanent healthy lifestyle habits. “Resilient Mind” a plan to training and maintain relaxation and enhance stress fighting tips and tactics. “Mayo Clinic Diet” a long-term weight management program. Finally, “Wheels of Life Visual Happiness” used to create balance and improve productivity in 8 different areas.The Attentive program also features a CDC granted diabetes preventative program for both pre-diabetes and diabetic employees. Additional benefits include a children’s virtual reality app for heart and health education and a Body Fat Index (BFI) app that provides more accurate measurement than the body mass index. The app then provides virtual reality images of the person’s heart, kidneys and other vital organs with corresponding appearance of the person’s body fat percent on the organs. The Attentive program recently added Freedom 360, the world’s first ever interactive recovery system for addiction. The program has a relapse prevention program as well. Attentive also added Couple wise, counseling service for all stages of life. Both of these programs are with no copay. Strong incentives motivate individuals to be accountable for their health. Statistical reduction in claims, reduced health risk management costs, and healthier outcomes result in healthier and happier employees. Incentivized benefits without the need to reduce take-home pay attract quality employees and less turnover. Employer saves on FICA taxes, has reduced claims, and provides increasing benefits. The Attentive Health & Wellness program is a superior wellness program that is revolutionizing the wellness industry and improving the health and productivity of employees.
Simply call us or send us a simple email and allow us to do the work for you.
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