Little Drips Make for Big Waste

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Presented by: Alyssa Tkach

Every homeowner can attest to the importance of protecting their home. Although many are aware of the potential destruction of disasters such as fires and storms, there is less knowledge overall about the significance of home water leaks. In fact, according to Bloomberg’s article, “The Hidden Property Danger Lurking in Your Home,” almost half of all property damage losses in 2015 were due to water leaks. 1 in 50 homes have water leaks or frozen pipes each year.

Water leaks, if left unattended, can be very costly, so it is absolutely crucial for homeowners to stop them before they occur. If not, in the long-run one may have to bear additional costs for repair and also hire professionals from a reputable water damage restoration company. CHUBB lists several ways to reduce the risk of water damage in the home:

  1. If you’re leaving for an extended period of time, ask someone to stay in or check on the home periodically.
  2. Routinely check the home’s appliances for potential leaks.
  3. Inspect water supply lines or get it inspected by professionals available at websites similar to https://cityplumbingandrooter.com/sherman-oaks/.
  4. Turn off the main water supply when you leave for an extended period of time.
  5. Clear out your home’s gutters regularly.
  6. Inspect your home’s roof regularly.
  7. When you are planning to leave, set your flow-based water shut off device to “away.”
  8. Regularly replace the batteries in your water leak sensor device.
  9. Always inspect your sump pump, and keep a battery-powered backup.
  10. Schedule annual maintenance for your backup generator, and routinely ensure that it’s in working order.

Many people tend to install anti-water disaster devices within their home or call in experts to help prevent a water damage. Bloomberg’s article, “The Property Damage You’re Most Likely to Suffer,” lists three main types of devices that homeowners can choose from:

  1. Device sensors: installed near water-using appliances, these devices are triggered by water near them, and they will sound an alarm.
  2. Centralized system: attached to the home’s main water line, these devices monitor the amount of water flowing into the home, triggering the main water shut-off valve if necessary.
  3. Combination system: this system can sense when water is near it as well as control the home’s water shut-off valve.

Sometimes, the water from a particular supplier might contain minerals that can corrode the pipes over time and this might also cause leakage. In such situations, it is advisable to Switch Water Supplier and get pure water. Additionally, sump pumps can be a beneficial addition to any home. They are designed to drain excess water to another point far away from the home, preventing foundation damage.

Homeowners who take the steps to install a device, or simply just inspect their water supply regularly, have a much higher chance of stopping a leak in its tracks. Don’t let water damage your home-be proactive and stay aware!

Links used:

https://www.bloomberg.com/news/sponsors/chubb/the-hidden-property-damage-danger-lurking-in-your-home/?adv=13632&prx_t=0foCAnKMSAYikPA

https://www.bloomberg.com/news/sponsors/features/chubb/the-property-damage-youre-most-likely-to-suffer/?adv=13632&prx_t=z_oCAmKMSAYikPA

https://www2.chubb.com/_global-assets/documents/chubb_waterdefensetips.pdf

Healthy Smiles All Year Long

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Oral wellness is the foundation for overall health, so regular visits to the dentist for checkups and cleanings are fundamental to making your smile last and preventing tooth decay and gum disease. Even if you don’t have any symptoms, dental exams are important to make sure your teeth and gums stay healthy.  And if problems do occur, they’ll be easier to treat.

Current or former smoker? Lost a tooth? Have diabetes?

You could be at higher risk for periodontal (gum) disease, tooth loss, or even mouth cancer.  Delta Dental makes it easy to measure your risk with a quick and easy online self-assessment in the Your Oral Health section of www.deltadentalma.com.

Help Your Dentist Help You

  • See a dentist regularly. Doing so can help ensure that problems are taken care of before they become more serious and expensive.
  • Choose a dentist who belongs to your plan’s network. Switching from a dentist who isn’t in the plan to one who is enrolled will likely save you money.
  • Take advantage of any exams, teeth cleanings or X-rays your insurance may cover. Getting regular dental checkups, such as cleanings and exams, will help prevent dental complications or worsening of dental problems such as cavities.
  • Become a partner in your dental health. Tell your dentist about yourself and your concerns, and ask questions about caring for your teeth. Make sure you also understand any treatment options your dentist recommends.

 

Shining a Light on Moonlighting

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Presented by: Christopher F. Hawthorne

Many contractor businessowners face the question of what to do about employees that moonlight at night and on weekends. Does allowing employees to moonlight put a business in harm’s way? It could.

When an employee moonlights, they are taking on the same general liability, workers compensation, and auto exposures as the employer. Even if the employee carries their own insurance, their actions may be increasing the employer’s liability and future insurance costs.

If a moonlighting employee uses the employer’s vehicle which is still dressed with the employer’s logo, and is using the employer’s tools, could the customer state that they thought they were working with the employer after a loss occurred? Since the moonlighting employee might have little or no coverage, it is conceivable that the customer might look to the employer for coverage for damage done by the moonlighting employee. If so, the employer’s general liability, commercial auto, or even workers compensation would respond to a claim filed against the employer.

When the commercial general liability policy is examined for its wording, there are several troublesome areas. The first is the definition of an insured; it includes employees acting in the scope of their employment. This is not great wording in terms of your own protection. Second, the definition of your product includes products traded or sold under “your” name. If the employee is there with the employer’s truck, logo and knowledge, could an attorney-an insurance attorney at that-make a case to pull the employer in? Is this a bet worth taking? As contractors with claims experience know, the process can be unfair, and it can cost significant future premiums while the argument is going through court. The fact that the employer allowed moonlighting to occur makes a strong argument for vicarious liability.

If the employee got hurt while moonlighting, it could potentially pull the employer’s workers compensation (wherein, the employee might rope in professional legal counsel similar to the ones dealing with workers comp attorney in Columbus OH) in. If the employee worked for a few hours the next day and claimed that the injury really happened on the employer’s job, the employer’s workers compensation would be forced to prove the employee was not working at his or her job at the time of the injury. This could prove to be quite difficult and the employer’s workers compensation may end up paying the claim.

If the employer’s vehicle is being used with the employer’s permission, the commercial auto and possibly the umbrella would definitely be involved in a claim should there be an accident.

In short, without being paid for the risk, the employer is at risk. Contractors may wish to consider making it a condition of employment that moonlighting is not allowed. Two methods for preventing moonlight, along with a written policy, are as follows:

  • Equip company vehicles with GPS monitoring so the employer can see when a vehicle is in use after hours. There have been several reported cases of GPS monitoring even identifying employees that moonlight while on duty for the employer!
  • Leave all company vehicles, tools, and uniforms at the employer’s business location each night. This may require the employer to provide a changing area and cleaning service.

Employees should know that their personal homeowner’s insurance provides no liability for their business pursuits. From both the employer and the employee’s point of view, moonlighting is not a good idea.

The good news for employers is there are options to help reduce moonlighting. A possible solution may be to offer employees commissions for business they bring in. They could also offer discount pricing for the employees friends and family. These two options would help satisfy the employees desire to increase their income and alleviate the pressure of helping their friends and family after work.

Tax Cut & Jobs Act – Estate Planning Issues

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The Tax Cut & Jobs Act now provides each taxpayer an $11.2 million estate tax exemption {very unlike the MA $1 million threshold exemption applicable to Massachusetts residents} – doubling the exemption established by the Obama Administration.  Now is a good time for all clients to review their existing plans with their advisor team to ensure they have accomplished their goals, including:

  1. Probate Avoidance,
  2. Maximize Asset Protection,
  3. Minimizing income tax,
  4. Enhance retirement income,
  5. Accomplish incapacity/disability planning,
  6. Ensure your desired estate disposition,
  7. Protect against spendthrift or imprudent heirs,
  8. Provide for Special Needs heirs,
  9. Accomplish any charitable goals, and
  10. Complete or update your business succession plans.

For those ultra-high net worth folks who have the ability and desire to make substantial gifts to their heirs now, such a plan has the advantage of:

  1. Using some/all of their exemption now, avoiding the possibility of a Democratic Congress’s likely reduction of the exemption in the future, and
  2. Avoiding MA estate tax on the gifted assets and ensuing growth outside your taxable estate.

Such a gift(s) can be asset protected within a spendthrift irrevocable trust, as opposed to going outright to your heirs, and be subject to their divorce, bankruptcy, premature demise, incapacity and other factors that can arise, threatening the integrity of your planning. In fact, leverage gifting techniques exist for situations where folks wish to make enhanced use of the new gift/estate tax FED exemptions. Give Cleary Insurance a call to follow up on any of these ideas, so that you can make the most of this current change, and ensure your personal goals are indeed met in the most efficient manner.

Wellness programs are out. Wellbeing strategies are in.

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Something isn’t right. As a country, we are getting sicker every day. Productivity is on the decline, and most employees report not being engaged while on the clock. Relentless increases in healthcare costs are crippling organizations, and the future promises more of the same. We are quickly reaching a crossroads where the cost of healthcare and the impact of lost productivity will cause irreparable damage to organizations of all sizes.

Part of the problem is that traditional approaches to wellness have not delivered on the promise of reduced cost and improved productivity. Many of these wellness programs were poorly constructed and inconsistently delivered. As more vendors poured into the space, the quality of services offered began to vary widely and choosing an effective partner became more and more challenging for employers. Even the higher quality programs available were limited in their impact because they focused only on physical health problems instead of fueling the whole person.

The bottom line is this: It’s time to set aside wellness “programs” in favor of wellbeing strategies. It’s time for a new approach that goes beyond wellness to true potential.

True potential occurs when individuals are exceling in every facet of their lives: physically, emotionally, socially, and financially. It occurs when an organization is experiencing higher performance, organizational trustworthiness and employee engagement.

Reaching true potential is marked by:

  • Individuals who are thriving, contributing, connecting and learning.
  • Lower healthcare costs and improved productivity.
  • A culture built on trust where people do their best work.

True potential isn’t about managing someone’s health or changing behaviors. It’s about creating opportunities for individuals to live their best lives and do their best work. It’s about establishing a fresh perspective, shaping a trustworthy culture and nurturing healthy habits. This approach requires us to reevaluate everything we have come to accept with the status quo and to move beyond it.

Applying this new mindset starts with re-evaluating what success looks like. It requires us to specifically identify what we are trying to accomplish and how to meaningfully measure it.

Too often, vendors create their own metrics for demonstrating ROI, based on their specific strengths or self-generated formulas that don’t hold up to intense scrutiny. This has created a lot of noise and eroded the credibility of outcomes generated by traditional wellness programs. Measuring ROI has been a huge debate and an enormous distraction for decades. In the new model, we must set our sights on a meaningful method to measure progress toward true potential, one that can be an accurate and credible barometer of value.

Where do we find such a standard? Thanks to foundational research by the University of Michigan, which spans 40 years and 4 million healthcare claims, we have the answer. Through this research, the University identified 15 benchmark risks in physical, emotional, social and financial wellbeing that most directly impact healthcare costs and productivity.

This set of benchmark wellbeing risks is the gold standard when gauging the effectiveness of wellbeing strategies aimed at fueling true potential. These benchmark wellbeing risks are the set of factors that most directly affect the bottom line and the wellbeing of a population, the factors that make the difference between reaching true potential and falling short of it. By using this scientifically-valid standard to measure and evaluate your efforts, you can hold vendors and partners accountable for delivering and demonstrating results and have confidence that you are receiving a return on your investment of time and money. This is a necessary first step in taking a fresh approach to improving the wellbeing of your population.

Want to learn more about the roadmap for reaching true potential? Contact us today for a consultation and also receive a free whitepaper from our partner CHC Wellbeing. We can help you transform your wellness programs into wellbeing strategies that get results.

 

 

 

Why Pipe Freezing is a Problem

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Water has a unique property in that it expands as it freezes. This expansion puts tremendous pressure on whatever is containing it, including metal or plastic pipes. No matter the strength of a container, expanding water can cause pipes to break.

Pipes that freeze most frequently are:

  • Pipes that are exposed to severe cold, like outdoor hose bibs, swimming pool supply lines, and water sprinkler lines.
  • Water supply pipes in unheated interior areas like basements and crawl spaces, attics, garages, or kitchen cabinets.
  • Pipes that run against exterior walls that have little or no insulation.

How to Protect Pipes From Freezing

Before the onset of cold weather, protect your pipes from freezing by following these recommendations:

  • Drain water from swimming pool and water sprinkler supply lines following manufacturer’s or installer’s directions. Do not put antifreeze in these lines unless directed. Antifreeze is environmentally harmful, and is dangerous to humans, pets, wildlife, and landscaping.
  • Remove, drain, and store hoses used outdoors. Close inside valves supplying outdoor hose bibs. Open the outside hose bibs to allow water to drain. Keep the outside valve open so that any water remaining in the pipe can expand without causing the pipe to break.
  • Add insulation to attics, basements and crawl spaces. Insulation will maintain higher temperatures in these areas.
  • Check around the home for other areas where water supply lines are located in unheated areas. Look in the garage, and under kitchen and bathroom cabinets. Both hot and cold water pipes in these areas should be insulated.
  • Consider installing specific products made to insulate water pipes like a “pipe sleeve” or installing UL-listed “heat tape,” “heat cable,” or similar materials on exposed water pipes. Newspaper can provide some degree of insulation and protection to exposed pipes – even ” of newspaper can provide significant protection in areas that usually do not have frequent or prolonged temperatures below freezing.
  • Consider relocating the exposed pipes with the help of a plumbing repair company to provide increased protection from freezing.

How to Prevent Frozen Pipes

  • Keep garage doors closed if there are water supply lines in the garage.
  • Open kitchen and bathroom cabinet doors to allow warmer air to circulate around the plumbing. Be sure to move any harmful cleaners and household chemicals up out of the reach of children.
  • When the weather is very cold outside, let the cold water drip from the faucet served by exposed pipes. Running water through the pipe – even at a trickle – helps prevent pipes from freezing.
  • Keep the thermostat set to the same temperature both during the day and at night. By temporarily suspending the use of lower nighttime temperatures, you may incur a higher heating bill, but you can prevent a much more costly repair job if pipes freeze and burst.
  • If you will be going away during cold weather, leave the heat on in your home, set to a temperature no lower than 55 F.

How to Thaw Frozen Pipes

If you turn on a faucet and only a trickle comes out, suspect a frozen pipe. Likely places for frozen pipes include against exterior walls or where your water service enters your home through the foundation.

  • Keep the faucet open. As you treat the frozen pipe and the frozen area begins to melt, water will begin to flow through the frozen area. Running water through the pipe will help melt ice in the pipe.
  • Apply heat to the section of pipe using an electric heating pad wrapped around the pipe, an electric hair dryer, a portable space heater (kept away from flammable materials), or by wrapping pipes with towels soaked in hot water. Do not use a blowtorch, kerosene or propane heater, charcoal stove, or other open flame device.
  • Apply heat until full water pressure is restored. If you are unable to locate the frozen area, if the frozen area is not accessible, or if you can not thaw the pipe, call a licensed plumber.

Check all other faucets in your home to find out if you have additional frozen pipes. If one pipe freezes, others may freeze, too.

 

Why Risk Transfer?

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Presented by Christopher F. Hawthorne, CPCU, CIC

Insurance premiums fluctuate annually due to sales and payroll activity of a contractor and also due to loss history.  The insurance policy provides money to rebuild damaged property, to defend in a liability suit, to pay settlements as well as take care of employees when they are injured on the job.  These combined costs are labeled as losses.

An insurance loss has the potential of driving insurance premiums up for four or five years as well as limiting which carriers will wish to work with a contractor. When an insurance carrier is determining what it will offer in term of premiums, it will incorporate the prior four years of losses as part of the pricing mechanism.  The fewer and smaller the losses, the more carriers will be interested and the carriers can justify offering lower premiums.

An available risk management technique to lower the size of a contractors losses arising from working with a sub-contractor is Risk Transfer.  Risk Transfer can protect one party’s insurance program and future premiums by transferring the cost of a loss to another party. Conversely, it can increase the future costs of the other party’s insurance program.

The major types of protection in risk transfer agreements are as follows:

Hold Harmless-Party A holds Party B harmless for a loss when Party A has caused part or all of a loss.

Indemnify– Party A agrees to reimburse Party B for damages (settlements and judgments).

Defend– Party A agrees to pay the cost to defend Party B after a loss if Party B is named in a claim or suit.

Additional Insured Status– Party A provides coverage for Party B under Party A’s insurance program for Operations and Completed Operations.

Primary Coverage-Party A states that it’s coverage is primary should Party B be brought into the suit.

Non-Contributory– Coverage-Party A states it’s policy disallows Party B’s policies from sharing in the loss.

Waiver of Subrogation-Party A disallows its insurance company from pursuing Party B’s insurance carrier for any amount due to Party B’s negligence that may have contributed to the loss.

In short Party A is highly protected by Party B.

When is it appropriate for one to agree to these terms? While this question is to be answered on a case by case basis, in general if accepting work from a General Contractor (GC), it is the norm that the GC will expect the terms to be agreed to, to some degree. The economic value of the relationship should be considered before agreeing to adding this exposure to one’s liability.

When is it appropriate to ask for these terms? Whenever possible, as it greatly enhances the protection for an operation.

Not all agreements are the same and not all insurance policies can back them up. It is critical both parties involve their attorneys as well as their agents before signing. As always, a team approach and communication will put everyone is a better position to succeed and survive a loss.

New Healthcare Assessment for Massachusetts Employers

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We want to make you aware of an important law that will impact Massachusetts-based employers beginning January 1, 2018. Under a law signed recently by Governor Baker, employers with six or more employees will begin paying a new health care assessment to support the Commonwealth’s Medicaid program, MassHealth.

Highlights of the new law

  • It increases the existing Employer Medical Assistance Contribution (EMAC) from $51 per employee to $76.50 per employee.
  • It establishes a new assessment on employers for any employee who enrolls in MassHealth or subsidized insurance coverage offered through the Massachusetts Health Connector. The assessment is $750 per employee, per year.
  • Employers will most likely pay the assessment on a quarterly basis–just like they do for unemployment insurance.
  • Employers who hire any worker for at least one day during any 13 weeks in a calendar year, and who pay at least $1,500 in wages per quarter, will be required to contribute.

The Massachusetts Department of Unemployment Assistance and the Health Connector are still finalizing regulations to implement the assessment. The regulations are expected to be completed before the end of the year. The assessment is expected to generate $200 million annually; it is scheduled to end on December 31, 2019.

Law also reduces unemployment contribution rates
To help offset the impact of the new assessment on employers, the law also reduces Massachusetts unemployment contribution rates for two years. For more information on the employer contribution schedule, visit  the link below:

https://www.mass.gov/service-details/changes-to-employer-medical-assistance-contributions-emac-effective-january-1-2018.

5 Questions to Ask Clients Who Are Considering a 401(k) Loan

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Presented by Douglas W. Greene CFP® CLU®

Advisors may suggest to their clients that they never take a loan from their 401(k) plan, but things happen, and happen more often than you might think.  According to Morningstar, at the end of 2012, 21% of 401(k) plan participates who were eligible had loans outstanding against their 401(k).  50% of people who borrow against their 401(k) will do so more than once.

Here are five key questions to ask clients:

  1. Does your intended use of funds promise a higher rate of return than leaving the money be?
    – Steering borrowed funds to an investment with an uncertain payoff is much less compelling than paying off high interest debt.
  2. Is your job secure?
    – If you leave your employer with a loan outstanding, you will usually be forced to pay back the loan soon, usually within 90 days.
  3. Can you realistically pay this back?
    – Because there is no credit check, the client is the one responsible to deciding if the loan is financially viable.  Make sure household budget is considered as interest will increase the payments.
  4. Are you prepared to lose the benefit of your tax deductions?
    – A 401k provides an employee federal and state income tax deductions on contributions.  If a loan is taken, it must be paid with after-tax dollars thus offsetting the benefit of the deductions.
  5. Do you feel like you can afford to delay your retirement saving?
    – Their budget may not be able to support the loan repayment and current 401(k) savings.  Also, the money withdrawn does not have the opportunity to grow with the market.