2014 Changes affecting Federal Contractors

There have been significant developments in the labor policy arena during the first quarter of 2014.  In January, President Obama unveiled his plan to use an Executive Order to increase the minimum wage Federal Contractors pay their workers.  In March, a Presidential Memorandum was issued to the Department of Labor (DOL) to update and modernize the overtime pay system.  Additionally, the Final Rule of Section 503 of the Rehabilitation Act of 1973 which was amended in September 2013 will go into effect on March 24, 2014.  Federal Contractors need to be aware of these changes and the potential impact they have on DOL compliance.

Minimum Wage Increase/Overtime Protection

On February 12, 2014, President Obama issued an Executive Order to raise the minimum wage for Federal Contractors.  As of January 1, 2015, the minimum wage for affected federal contracting and subcontracting personnel will increase from $7.25 per hour to $10.10 per hour. Additionally, the Obama administration announced it will issue a Presidential Memorandum to the DOL instructing its Secretary to update regulations regarding overtime protection for workers under Federal Labor Standards Act (FLSA).   Any changes to the regulation will be the first since 2004, when the minimum weekly salary for overtime-exempt workers was increased to the current $455 per week.

Rehabilitation Act

On March 24, 2014 two final rules issued by the Federal Contracts Compliance Programs will go into effect, enhancing contractor’s hiring and affirmative action obligations for individuals with disabilities and covered veterans. The disability rule sets a seven percent goal for contractors’ employment of persons with disabilities across all job categories and introduces numerous compliance and reporting mandates.  If you would like more information on these rules please click here to read a fact sheet outlining the background and highlighting the regulations.

Given these diverse and often disparate developments, the importance of the Professional Service Council (PSC) and the Human Resource Labor Relations Committee (HRLRC) in conveying industry consensus viewpoints to government officials and as a forum for companies and policymakers to meet face-to-face has never been greater.   In addition to serving as a discussion forum with government officials, the HRLRC serves as a focal point for PSC’s policy and educational activities around the Service Contract Act ( SCA ), the Davis Bacon Act (DBA),  and a range of legislation and regulations governing contractor health, hiring and safety practices.

The committee welcomed Office of Federal Contract Compliance Programs (OFCCP) Policy Director, Debra Carr, for an extensive dialogue on its upcoming hiring requirements, and both PSC and OFCCP pledged to remain engaged as the new rule takes effect. HRLRC will also continue its longstanding engagements with the military and civilian agency labor advisors, along with officials from DOL and its component divisions.

During 2014, under the aegis of the HRLRC, PSC will continue to explore areas in which PSC members can benefit from expert insight and training. They will continue their HRLRC meetings during the year as well as their PSC- SCA two day courses, along with the DOL and DOD panels, which are an active part of their training programs.

Under the leadership of long-time committee chair Al Corvigno of MARAL, LLC and new committee co-chair Anne Rohall of Tech Systems, Inc., the Human Resources and Labor Policy Committee will continue to be the premier venue for PSC members focused on critical HR and labor policy issues.

At Cleary, we know how important a comprehensive benefits package can be to your continued success. Give us a call today at 617-723-0700 and we will work with you to create a plan that meets your fringe-benefit obligations and provides your employees with valuable benefits.

Directors & Officers (D&O) Coverage

Presented by Justin Yurchenko

Every Board of Director member needs to realize the risks of operating any organization, and how to reduce those risks with appropriate management strategies. Written and implemented risk management procedures can serve as an effective way to monitor and mitigate risk within any organization. However, when these strategies are unsuccessful, the transfer of risk should fall to your insurance policy.

Directors and Officers insurance (D&O) is an important safeguard to any for-profit or nonprofit organization. D&O protects the directors, officers, employees, shareholders (not involved in management) and sometimes even volunteers. Unfortunately, even in today’s litigious environment, only 28% of companies with revenue of less than $100 million have purchased D&O coverage. In most cases, board members do not foresee any possible litigation, which is the main reason for not purchasing coverage. This is a common misconception, as just about any board can be a sued; moreover, claims can come from just about anyone – employees, customers, board members, vendors, creditors and current clients.

At the heart of any D&O policy lies the promise to indemnify the individual directors and officers in the event they are subject to allegations of wrongful conduct within their organizational duties. The primary coverages offered under a D&O policy are as follows:

  • Coverage for claims made against the company, its directors, officers, managers, employees and, sometimes, volunteers.
  • Employment Practices Liability, which includes allegations such as wrongful termination, discrimination, and harassment.
  • Fiduciary Liability coverage
  • Employee Dishonesty coverage
  • Kidnap & Ransom coverage

Choosing the right carrier and policy limits is often a difficult process. Each carrier has specialized coverage wording and exclusions. It is important to work with an experienced broker who can determine the best available combination of D&O pricing and coverage for your organizational needs.

At Cleary, we will evaluate your business exposures and work with you to develop a comprehensive plan to safeguard your business. Give us a call today at 617-723-0700.

PPACA ALERT: Change in Employer Mandate Affects All Employers in 2015

There has just been another PPACA delay to the employer mandate (also known as the “pay or play” mandate) that was slated to begin on January 1, 2015. As you may recall, this was originally effective as of 2014, but postponed last July. The employer mandate is the component of the law that will fine employers for not providing coverage (or not meeting the affordability or minimum value requirements) to their full-time employees (those working 30+ hours per week, on average). Here are the newest delays to be aware of as they affect all employers with at least 50 full-time equivalent employees:

Employers with 50-99 full-time equivalent employees: Delay of the employer mandate until 2016. Therefore, no penalty in 2015 if you don’t offer coverage, however you still must begin reporting details about your insurance coverage to the federal government in 2015.
Be aware, you will need to certify eligibility for this transition relief and meet other requirements, including not reducing your workforce to qualify for transition relief and maintaining previously-offered coverage.

Employers with 100+ full-time equivalent employees: You must offer coverage to at least 70% of your full-time employees (working 30+ hours) in 2015, then to at least 95% in 2016. You will also be required by to report details to the federal government next year.
Other transition relief contained in the proposed regulations were also extended, including the ability to use a short timeframe (at least 6 months) to determine whether an employer is large enough to be subject to the mandate, a delay in the requirement to provide coverage to dependent children to 2016 (as long as the employer is taking steps to arrange for such coverage to begin in 2016), and the permitted use of a short measurement period in 2014 to prepare for 2015.

WHAT DOES ALL OF THIS MEAN TO ME?

Employers still need to analyze their exposure and employee population. If you are under 100 employees, there is more relief for you however you still have compliance and reporting requirements (to be released over the coming months) that must be reviewed and prepared in time for 2015. If you have more than 100 employees, you will need to review your workforce to determine which employees need to be offered coverage in 2015. While you only have to ensure that 70% of that population is offered coverage, you will need to identify them and ensure you are in compliance with nondiscrimination rules as they apply. Even though this delay appears to provide some relief, it still requires a full analysis and review of your workforce and compliance with some mandates in 2015.

REFERENCE MATERIALS:

The final regulations are available here: https://s3.amazonaws.com/public-inspection.federalregister.gov/2014-03082.pdf
An IRS Q&A is available here: http://www.irs.gov/uac/Newsroom/Questions-and-Answers-on-Employer-Shared-Responsibility-Provisions-Under-the-Affordable-Care-Act#Liability

Employee in the News

We are very proud of our own Deborah Corcoran.  If you have ever had the pleasure of working with Deb, then you know she strives to exceed expectations!

In her free time during the summer and fall months Deb knits hats and mittens for two charity organizations.  This past December she donated 32 sets of them to Caps for Kids and Pathways for Children.  Her donations are always a huge hit and loved by the children who receive them.

Caps For Kids is an organization that provides hand made hats, mittens, scarves, and sweaters to Boston children every holiday season.  Please click here to read an article featured in the Boston Globe.

Pathways for Children are leaders in early education and work to strengthen the family unit.  Please click here to read more about them.

Client Spotlight: The Edge Sports Center

We are pleased to spotlight our client The Edge Sports Center which was founded and is managed by Scott Fusco. Scott graduated from Harvard University in 1986 where he was a two time All-American hockey player, the career scoring leader, and the Hobey Baker award winner in that year. Scott was also was a member of the US Olympic Hockey Team in 1984 and 1988.

The Edge was the primary training facility for the 2014 US Olympic Women’s Hockey Team.  In a recent press conference, the women complimented the facility and thanked Scott for skating with them as a practice player!

In addition to hockey, the athletic facility has two outdoor turf athletic fields with one field enclosed for the winter months, a state of the art training center, and a health club facility.

Please click here to read more about The Edge athletic facility and sports complex.

Data Breach Risk Management

Data breaches have been an all too common topic. Recent breaches at Target, Neiman Marcus and Yahoo have impacted millions of consumers. These recent examples are high-profile incidents but there are many more experienced by small and mid-sized businesses every day. For example, the Massachusetts Office of Consumer Affairs was notified of 1,555 data breaches reported by businesses in 2013, a 30% increase over the previous year.

Forty-six states have passed data breach notification laws. In order to understand fully what is involved in a data breach, one can review resources like https://www.fortinet.com/resources/cyberglossary/data-breach. While the specifics of these laws vary, a common theme requires businesses to notify individuals who have been potentially affected by a breach exposing their personal information as well as state regulators. Examples of personal information include name, social security number, date of birth, driver’s license number, and credit card number. Some of these laws will require that the business offer credit monitoring services to the impacted individuals in addition to the notification. Failure to comply with data breach laws could result in sizable penalties.

There are many risk management approaches that businesses can take to reduce the threat of data breaches. Best practices regarding how digital and paper records are handled to safeguard from a cyber threat should be developed. Consultation with a firm specializing in computer security is critical. The Ponemon Institute (www.ponemon.org) is an excellent resource for cyber security issues. Ponemon and Symantec have developed an online Data Breach Calculator (https://databreachcalculator.com) to help you evaluate your exposure to loss.

Cyber Risk Insurance is an important consideration for the risk management process. These policies can provide first and/or third party coverage. First party coverage addresses expenses associated with customer notification, credit monitoring and public relation expenses. Third party coverage would respond to litigation that results from a breach. Businesses with a particular need for this type of insurance include medical, legal, financial and retail operations.

Those of us impacted by the Target breach have seen components of Cyber Risk Insurance first hand. The public relations initiatives and credit monitoring services are both examples of first party coverage available through Cyber Risk insurance policies. Credit monitoring services can cost $50 per customer and is often required by state regulations. Target’s third party exposure will be responding to the litigation that is likely to come their way as a result of the breach. The third party component for a Cyber Risk policy will defend the law suits and pay damages if awarded.

Please click here to view an example of a Traveler’s application for this product. In most cases we can obtain premium information when you provide a few pieces of basic information. Please feel free to contact your representative to explore possible insurance solutions relating to data breach or cyber issues.

Why Provide Disability Insurance?

As a business owner, you naturally want to be able to justify every dollar that goes out the door. It’s a competitive market out there for your product or service, and every little advantage helps.

Most successful entrepreneurs, however, are keenly aware that the market for talented employees is also keenly competitive – and there’s a big difference in productivity between experienced, knowledgeable employees who have been with your company for years on one hand, and the new hire off the street, on the other hand.

If you want to keep your best talent, you need to be competitive with the market, of course. But you also want to protect your own best interests at the same time. In today’s market, providing quality protection against the threat of disability makes good sense not just for your employees, but for any business that cares to retain the best, most talented, and most productive workers.

Workers View Benefits as Important

Many surveys have demonstrated that employees place significant value on benefits. For example, according to the Glassdoor Employment Confidence Survey, 76 percent of employees rate their overall health insurance coverage as the most important employee benefit, beating even retirement plans in importance.

Furthermore, according to the Society for Human Resource Managements’ 2013 Employee Benefits report, in addition to the schemes offered by an ndis provider or other similar organizations in a country, more and more employers also seem to be offering long and short-term disability plans as part of their employment package. As of last year, 77 percent of employers provided long-term disability protection, while 68 percent provided full-time workers with short-term disability protection.

Outlook

The momentum is clear: Group disability protection is rapidly becoming a standard offering for full-time employees. Meanwhile, as the Affordable Care Act takes hold, health insurance is going to become less and less of a marketplace differentiator for employers. Workers with pre-existing conditions don’t rely on their group plans to be able to get any kind of coverage at all, thanks to the prohibition on underwriting based on pre-existing conditions. And as the employer mandate kicks in, all employers except the very smallest will be forced to provide major medical, or pay big fines.

That leaves other insurance benefits, such as disability, at the top of the list of non-wage differentiators that keep applicants coming, and keep talent from walking away.

Benefits of Group Disability to the Employer

The opening paragraphs, above, make the case for a robust benefits package in general. Why is disability vital? For several reasons:

First, almost every worker who’s been around a few years knows someone who has been affected by an injury or illness that prevents them or a loved one from earning a living. In some cases, you can make the case with people in your firm – former employees who have had their lives disrupted by accidents or illnesses, and who have had to leave their jobs.

It’s therefore easy to “sell” the value of these benefits to your workforce, because workers can very easily see themselves in need of important income protection.

Second, providing a disability plan can help ensure your employees are at their most productive when working on your dime. Workers with access to a good short-term disability plan are less likely to show up to work already hurt, or to try to work through injuries because they need the money. Employees who work sick or hurt run the risk of further injuring themselves and in some cases endanger other employees.

For example: If a worker has no disability insurance, they may feel they have no choice but to show up to work – even if they are taking powerful medications such as codeine or oxycontin, both strong prescription painkillers – for an injury or illness they sustained off the job, and therefore not covered by workers compensation.

If they have an accident at work, however, they endanger you, your other employees, and themselves, and they certainly risk forcing your insurance premiums up.

If you provide a good short-term disability plan, that worker taking narcotic pain medication has the option to stay home and recover, without endangering anyone else.

Additional Supports

Most people think of disability insurance as just a policy that replaces part of a workers income if he or she is injured or sick and can’t work. And that’s true, but that’s just the tip of the iceberg. Disability insurance companies routinely provide case managers and assistance to get an injured worker back on the job as quickly as possible. By coordinating therapies and advising both the worker and employer on adaptive technologies and reasonable accommodations, a disability insurance provider can be a valuable partner with a business in getting a productive, invaluable employee back on the job as quickly as possible.

In some cases, your case manager can help you design a solution so that an injured employee can work at home – minimizing time lost. This can also be important to protect a worker whose immune system has been compromised by chemotherapy, for example.

Disability vs. Workers Compensation

Remember, disability insurance and workers’ compensation insurance are different things. Workers’ compensation covers injuries incurred on the job, or as a direct result of work. Anything else is not protected by workers’ compensation. Your employees are vulnerable to all manner of illnesses and injuries on their own time – and small businesses frequently suffer when these workers do get hurt.

Best Practices

Buy Quality. The most successful disability insurance programs have been robust. Invest in quality benefits to build and maintain employee morale. Once one employee benefits, the others in the workplace will hear about it. Get the best benefits you can afford.

Educate Workers. Employees can’t value what they don’t know they have. Make a disability presentation part of your company orientation. And go over their benefits in regular training sessions and reviews.

Model Healthy Living. You can’t control what employees do in their off time. But you can point them in the right direction. Get good, healthy options in vending machines. Make healthy lunch options available. Have leadership model good eating habits. Provide access to one or more wellness programs, such as a gym membership.

At Cleary, we know how important a comprehensivee benefits package can be to your continued success. Give us a call today at 617-723-0700 and we will work with you to create a plan that meets your business objectives, takes into account state and federal laws, and capitalizes on incentives and innovative solutions now being offered.

Who Can Drive Your Commercial Vehicles?

By Michael Regan

Commercial auto insurance provides protection for any vehicle designated for business use against both property damage and liability. Whether your employees drive a vehicle that is for dedicated business use or drive a personal vehicle for business, it is important to have commercial auto insurance, whether that’s insurance for a new HGV driver or a different type of vehicle, as those vehicles will not be covered under a personal auto policy.

Who can drive your vehicles? I get this question from a lot of clients. The bottom line is that anyone you authorize to drive your vehicle is able to, provided the insurance company approves them. If, for instance, you own a van and are looking for the best van insurance policy, you can avail of the insurance provided you submit all the necessary documents and are up-to-date with the required regulations. You should always list employees who regularly drive your vehicles. If you have employees that may be temporary drivers then ask your broker or insurance company if it covers those drivers as long as they have your permission to operate the vehicle.

Commercial carriers ask for a list of drivers and their license numbers when a policy is written or at the time of renewal so that they can properly underwrite the risk. It is surprising the number of times we hear from the carriers that some of the drivers provided have a suspended license, recent DUI’s, or horrendous driving records. The carriers can and do mandate in certain circumstances that specific drivers are not allowed to drive the insured vehicles.

A “vehicle safety” program is an integral part of the recommended safety and loss control procedures for our insured’s. Not only does it address vehicle maintenance and safe operations, but also driver protocols; including new employee license review, driving training on the company vehicles, probationary driving periods, and operating violation penalties. That is, for any accidents or infractions there are written warnings of potential employment termination and that a third accident or infraction would result in termination.

Having safe drivers and a robust safety program not only helps to prevent claims, but also shows the carriers that you are serious about safety. This leads to more carriers vying for your business which may result in lower premiums.

A Financial Checklist You Can Handle

Presented by John B. Steiger

With the beginning of 2014 upon us, you may be setting goals and resolutions for the New Year. Starting fresh is always a great feeling, but the scale of what we set out to accomplish sometimes becomes overwhelming as the year progresses. The question is, how can you stay motivated to meet your financial goals in 2014?

Financial tips for every month

For many people, checking off items on a long list of to-dos brings a great sense of satisfaction. To help you keep moving toward your goals, we’ve created a month-by-month checklist of some key financial tasks to consider throughout the year. You might even find that you’ve completed some of these items already!

January

Establish a will or trust with an estate attorney. Although many people avoid thinking about estate planning, getting your affairs in order is one of the greatest gifts you can give your loved ones. If you’ve already established a will or a trust, sit down and review the documents with your attorney, making any necessary changes.
Create a budget. Establishing a monthly plan for spending and saving is an excellent way to help keep your finances in check, whether you’re reevaluating your financial life or just trying to maintain good habits.
Get ahead on your mortgage. If you can swing it, consider making a full extra payment toward your mortgage principal, which may help shorten the length of your loan.

February

Review life, home, and auto insurance. It’s a good idea to check your coverage regularly. Have you experienced a major life event in the past year, such as a marriage or birth? Any significant changes in your personal life may require you to reevaluate your coverage.
Revisit beneficiary designations for life insurance/retirement accounts. Do you need to add a new beneficiary or change a designation? Review your accounts to ensure that the correct people are listed.

March

Check your investment portfolio allocations and current holdings. As your financial advisor, we monitor your investment portfolio and holdings regularly. Nonetheless, you should be aware of where and how your assets are invested.
Explore loans, grants, and other sources of financial aid. There are many ways to finance college and postgraduate education expenses. If you have a college-bound child, it’s wise to get an early start researching the options available to you. The government-sponsored website http://studentaid.ed.gov is a great place to begin.

April

Review your online social security statement. Check your benefits information and earning record, and update any outdated personal information, such as your address or phone number.

May

Review 401(k), IRA, and SEP plans. No matter your retirement goals, keeping an eye on your balances and making regular contributions is essential. Depending on your circumstances, consider increasing the amount you contribute. (Retirement planning is equally important for self-employed individuals, who can take advantage of many of the same savings vehicles.) We encourage you to meet with us to discuss the investment allocations in your 401(k) or other plan.

June

Check your credit report. Request your free credit report at www.annualcreditreport.com and review it carefully for mistakes or suspicious charges, which could be a sign of identity theft.
Shred old documents. Any financial documents that you no longer need, such as bank and investment statements, should be destroyed to ensure that they don’t fall into the wrong hands.

July

Research 529 savings plans. Withdrawals from 529 plans are tax-free when used for qualified higher education expenses, making them an excellent way to save for a child or grandchild’s schooling.

August

Review online accounts. Take a look at the usernames and passwords you currently use for your online accounts. If the passwords are too basic or if you’ve held onto them for too long, consider changing them as a security precaution.

September

Assess your overall investment goals and strategy. It’s wise to reevaluate your financial goals every year, especially if you’ve had any major changes or unexpected events in your life. We can discuss your situation and help you adjust your financial plan accordingly.
Revisit your budget. Look back at the plan you made in January and decide whether to adjust your budget or stick to your current strategy.

October

Contact your CPA for year-end tax planning. Before tax season hits, it’s a good idea to speak with a certified accountant about changes in your personal circumstances, expiring tax breaks, and so on.
Consider charitable giving. Donating to charity at year-end is a popular way to do good while reaping potential tax deductions. Charitable giving may be another item you wish to discuss with your CPA.

November

Review the balance in your flexible spending account (FSA). FSAs require special attention so that you don’t lose unused funds at year-end. Under a new law, employers may allow employees to roll over $500 in FSA funds to the next year. Be sure to check the rules of your FSA plan and review your available balance.

December

Consider refinancing high-interest debt. Consolidating your mortgage, credit card, or car loan payments can make your financial life more efficient (and possibly lower your overall interest rate).
Pay off credit card balances every month. For the New Year, make a resolution to pay off your credit card balances every month, if you’re not doing so already.

Milestone events
In addition to the monthly tasks outlined here, keep these significant planning milestones in mind as you near retirement age:

Age 50: Consider making catch-up contributions to IRAs and qualified retirement plans.
Age 55: You can take distributions from 401(k) plans without penalty if retired.
Age 59½: You can take distributions from IRAs without penalty.
Ages 62–70: You can apply for social security benefits.
Age 65: You become eligible for Medicare.
Age 70½: You must begin taking required minimum distributions from IRAs, 401(k)s, and 403(b)s.

Although this may seem like a lot of information to take in at once, glancing at the checklist each month and being ready for important retirement-related dates can greatly improve your sense of financial security, granting you peace of mind in 2014—and beyond.

This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a tax preparer, professional tax advisor, or lawyer.

IRS CIRCULAR 230 DISCLOSURE:
To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.

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John B. Steiger is a financial consultant located at 460 Totten Pond Road Suite 600 Waltham, MA 02451. John offers securities as a Registered Representative of Commonwealth Financial Network®, Member FINRA/SIPC. John can be reached at 781.547.5621 or at john@financialconnector.com.

© 2013 Commonwealth Financial Network®

At Cleary, we are committed to a holistic approach of protecting and preserving our clients’ financial assets. Give us a call today at 617-723-0700 and let us know how we can help you.

Fireplace and Home Safety

More than one-third of Americans use fireplaces, wood stoves and other fuel-fired appliances as primary heat sources in their homes which they often pair with good quality heating oils (from companies similar to https://www.romeosfuel.com/). Unfortunately, many people are unaware of the fire risks when heating with wood and solid fuels.

Every year, heating fires account for 36% of housing units fires in rural areas. Creosote buildup in chimneys and stovepipes is frequently the cause of these fires. That is why all home heating systems might require regular maintenance done by contacting technical experts from companies like Albert Culver Company (albertculver.com) to function safely and efficiently.

The U.S. Fire Administration (USFA) encourages you to practice the following fire safety steps to keep those home fires safely burning. Remember, fire safety is your personal responsibility …Fire Stops With You!

Keep Heating Systems Clean

  • Have your chimney or wood stove inspected and cleaned annually by a certified chimney specialist.
  • Clear the area around the hearth of debris, decorations and flammable materials.
  • Leave glass doors open while burning a fire. Leaving the doors open ensures that the fire receives enough air to ensure complete combustion and keeps creosote from building up in the chimney.
  • Close glass doors when the fire is out to keep air from the chimney opening from getting into the room. Most glass fireplace doors have a metal mesh screen which should be closed when the glass doors are open. This mesh screen helps keep embers from getting out of the fireplace area.
  • Always use a metal mesh screen with fireplaces that do not have a glass fireplace door.
  • Make sure the furnaces are cleaned regularly and that fuel is refilled by companies such as Hollenbach Oil.
  • Install stovepipe thermometers to help monitor flue temperatures.
  • Keep air inlets on wood stoves open, and never restrict air supply to fireplaces.
  • Otherwise you may cause creosote buildup that could lead to a chimney fire.
  • Use fire-resistant materials on walls around wood stoves.

Safely Burn Fuels

  • Never use flammable liquids to start a fire.
  • Use only seasoned hardwood. Soft, moist wood accelerates creosote buildup. In pellet stoves, burn only dry, seasoned wood pellets.
  • Build small fires that burn completely and produce less smoke.
  • Never burn cardboard boxes, trash or debris in your fireplace or wood stove.
  • When building a fire, place logs at the rear of the fireplace on an adequate supporting grate.
  • Never leave a fire in the fireplace unattended. Extinguish the fire before going to bed or leaving the house.
  • Allow ashes to cool before disposing of them. Place ashes in a tightly covered metal container and keep the ash container at least 10 feet away from your home and any other nearby buildings. Never empty the ash directly into a trash can. Douse and saturate the ashes with water.

Protect the Outside of Your Home

  • Stack firewood outdoors at least 30 feet away from your home. A firewood rack can be helpful for this.
  • Keep the roof clear of leaves, pine needles and other debris. Regular cleaning should do the job.
  • Cover the chimney with a mesh screen spark arrester. This traps carbon particles and can help prevent fires.
  • Remove branches hanging above the chimney, flues or vents. If you cannot do it yourself, seek professional help.

Protect the Inside of Your Home

  • Install smoke alarms on every level of your home and inside and outside of sleeping areas. Test them monthly and change the batteries at least once a year. Consider installing the new long life smoke alarms.
  • Provide proper venting systems for all heating equipment.
  • Extend all vent pipes at least three feet above the roof.

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FEMA (2013, January 2) Fireplance and Home Fire Safety (http://www.usfa.fema.gov/citizens/home_fire_prev/heating/fireplace.shtm

Concerned about your personal insurance coverage? At Cleary, our experienced Personal Lines department will work with you to evaluate your insurance needs, identify exposures, and create a customized insurance portfolio. Give us a call today at 617-723-0700.