Even small companies can be a target of data thieves.  The primary causes of data breaches have been identified as employee error, contractor error, lost or stolen equipment (laptops, smart phones, storage media), and procedural mistakes.

Data outsourcing and sharing also create a risk.  In a survey by Ponemon Institute, more than 85 percent of companies indicated they share customer and employee data with third parties for activities such as billing, payroll, employee benefits, web hosting, and other information technology services.  Of those organizations that outsource data, over 60 percent do not require third parties to cover the costs associated with a data breach in their contracts.

Typical business insurance policies often do not provide adequate coverage for cyber risk.  There are cyber insurance programs available to help cover the costs of responding to data breaches and providing services to affected individuals.  To learn more about what options are available, contact your Leavitt Group insurance consultant.  Let them know of any e-commerce activity you do as well as what kind and whose information you store on your network.  Include information on subcontractors who manage any of your e-commerce activity or who help in running or maintaining your computer network.

By Andrea Roundy, Leavitt Group

Though we cannot prevent some disasters from occurring and affecting our businesses, we can implement measures to increase our resilience to these disasters and improve our ability to recover from such events.  Here are a few suggestions for preparing your business for disaster:  

Statistics show that 90 percent* of businesses fail within a year following a disaster unless they are able to resume operations within the first five days after the disaster occurs.  While the majority of large businesses have disaster recovery plans in place, many small to medium companies do not.

There are numerous resources available to aid a business in preparing for such events.  These include preparemybusiness.org, disastersafety.org, and fema.gov.

Following a disaster, make it a priority to keep people and property safe from further loss.  Report power and gas line damage as soon as possible.  Before allowing employees and customers to re-enter the property, it is important to ensure the building is safe.  Make arrangements for a contractor or structural engineer to inspect your building and identify the extent of the damages.  If the building is deemed unsafe for occupancy, make arrangements to work from a different location until repairs can be made. 

It is important that you get in contact with your insurance agent as quickly as possible to report your losses.  Be prepared to provide details regarding how, where, and when the loss or damage occurred.  If possible, it is helpful to have your policy number available when you call.

Beyond the initial general description you provide to your insurance agent, it is important to make note of all damages as you conduct a more thorough investigation of your property.  Keep track of all damages you find, including those to the building structure (roofing, siding, and windows), property, signage, equipment, product inventory, and raw materials.  Taking photos or videos will be helpful in documenting specific details.  

Taking time to make temporary repairs can be helpful in protecting your property from further damage.  Prevent weather-related damage by covering holes in the roof and boarding up broken windows.  Block off areas of the building that are completely unusable.  If moving to a temporary location, notify your customers and suppliers of the change of address to prevent unnecessary traffic around damaged property.  

The clean-up efforts you employ will depend on the nature and extent of the damages that have occurred.  Your insurance company may recommend you hire a professional cleaning service.  However, regardless of who does the work, clean-up efforts should be handled in a way that prevents further damage or injury from occurring.  If you and your employees are handling the job, use eye protection, gloves, hardhats, and dust masks/respirators.  Sanitation systems and gas and power lines should be restored as quickly as possible – contact the appropriate companies for each of these items to be repaired.

According to the Occupational Safety and Health Administration (OSHA), work-related musculoskeletal disorders (MSDs) are the most widespread occupational health hazard facing our nation.  Nearly one-third of workers compensation claims are due to insufficient ergonomic protection.  You can reduce the incidence of workers compensation claims with proper management of ergonomic risk factors in your workplace.  

Vibration and cold temperatures may add risk to the above conditions.  The level of risk associated with any of these conditions depends on their intensity and how long and often workers are exposed to them.  

The benefits of an ergonomically-correct workplace include high productivity, decreased risk of illness and injury, and increased satisfaction among employees.  In addition, over exertion and fatigue can be reduced.

Heat cramps are muscle spasms and pain, usually in the abdomen, arms, or legs.  A worker who is experiencing heat cramps should rest in a shady, cool area and drink plenty of water.  The worker should rest for a few hours before returning to strenuous work activity.  Medical attention is advised if the cramps do not go away.

Heat exhaustion symptoms include cool, moist skin and heavy sweating as well as headache, nausea or vomiting, dizziness, light headedness, weakness, thirst, irritability, and fast heartbeat.  This is serious enough that if a worker experiences heat exhaustion they should not return to work for the remainder of the day.  The affected worker should sit or lie down in a cool, shady area and drink plenty of water.  The worker can also be cooled by using cold compresses or ice packs.  If the signs or symptoms worsen or do not improve within 60 minutes, the worker should be taken to a clinic or emergency room for evaluation and treatment.

Heat stroke is a medical emergency – call 911 immediately.  Symptoms may include confusion, fainting, seizures, and a very high body temperature.  The individual may be sweating excessively or their skin may be red, hot, and dry.  While waiting for medical help move the worker to a cool area and give them fluids – preferably water.    Loosen their clothing and remove outer clothing.  If available, apply ice packs, cool compresses, or ice.  Do not leave them alone while waiting for help.

The fundamental purpose of life insurance is to provide money to those who rely on you financially when you die. This could be your immediate family, an aging parent, or your business partner.  

If a need exists, the most critical step is determining an appropriate death benefit amount. When assessing the amount of life insurance you need, consider factors such as final expenses, mortgage payoff or rent, credit card debt, automobile loans, college tuition, and continued income for dependents. Keep in mind that as your family grows and changes, you may need to reevaluate the amount of your death benefit amount.

The decisions involved with purchasing a life insurance policy can be intimidating.  Your insurance advisor can help make the process easier by offering advice, performing a needs analysis, and explaining coverage options and costs.

There are two basic types of life insurance: term and permanent (or whole life) insurance.  Term insurance offers protection only for a specified period of time.  The death benefit is paid only if a loss occurs during the term. Term policies do not build up any "cash value" aside from the death benefit itself.

With term insurance, premiums are initially lower than for permanent insurance, allowing the policy owner to buy higher face amounts at a younger age, when the need for protection is greatest. It is a good option for covering specific needs that will eventually disappear, such as a mortgage or other loans, to help prevent the loans from becoming a financial burden to the survivors.

New families often purchase term insurance and convert to permanent insurance later.  Premiums may be higher with the renewed or converted policy.

Permanent insurance (also known as whole life insurance) provides lifelong protection until maturity, usually until the insured is age 95 or older. It provides a cash value in addition to a death benefit.  Permanent insurance is a good choice if you want long-term coverage with a predictable premium and a way to accumulate cash funds for emergency needs or opportunities.  You may be able to borrow money against the policy to meet financial commitments, such as college expenses or purchasing a home. If loans remain unpaid at the time of the insured’s death, the insurance company deducts the loan balance, plus interest accrued, from the death benefit proceeds. Remember, however, that life insurance is designed to provide protection. Additional benefits, such as borrowing money from your policy, are secondary considerations.

Our hope is that you never have to deal with an automobile accident.  However, in the event that you do, we want you to be informed of actions you should take to protect yourself and others at the scene.  The following is a list of recommendations you should follow if you are involved in an accident.  

This month’s newsletter discusses ways you can protect your family and home from the devastation of fire.

In order for smoke alarms to do their job, it is important that they are properly installed and maintained.  The following tips are available through the United States Fire Administration (USFA):

A smoke alarm is just doing its job if it sounds while you are cooking or taking a hot shower with a lot of steam.  Disabling a smoke alarm or removing the battery can be a deadly mistake.  Rather than removing the battery, here are a few tips for silencing the alarm:

Disability income insurance is a type of health insurance that is intended to protect an employee from loss of income if they are unable to work for an extended period of time due to a disabling injury or illness.  Payments are usually made on a weekly or monthly basis for a specified amount of time during the length of the individual’s disability.  This is a type of insurance employers can offer in their group benefits plan for employees.  Disability insurance does not provide coverage for work-related injuries and accidents that are covered by workers compensation.

The Social Security Administration estimates just over 25 percent of today’s 20-year-olds will become disabled before age 67.  This is a significant number of individuals who are at risk of losing their income due to disability.

Disability insurance is actually one of the more affordable benefits you can provide for your employees. Including this coverage in your group benefits policy adds value to your benefits plan, which could help improve employee retention. 

Short-term disability insurance usually has a waiting period of 7 to 14 days before benefits take effect, and benefits pay out typically until long-term disability coverage begins or until the person is no longer disabled, whichever comes first.  This can be employer paid or employers can provide this type of coverage as a voluntary benefit for their employees, which means the employee pays the full premium amount.

Long-term disability insurance has a longer waiting period. Often the this type of policy takes effect after an employee has been out of work for 90 days or sometimes up to 6 months depending on how the policy is written.  This coverage continues for a specific amount of time that is indicated in the policy or until either the individual returns to work, passes away, or becomes eligible for social security benefits, whichever comes first.  Typically, employers provide this type of coverage as a group policy for their employees with the employer paying the premium.

In a survey conducted by the Opinion Research Corp, more than half of the respondents indicated they do not understand group disability insurance.  This extends to employees not even knowing if they are covered by a group disability insurance policy provided by their employer.  In fact, 65 percent of employees indicated they believe they are covered by employer-sponsored coverage, yet only 32 percent of working Americans actually have access to long-term disability coverage through their employer (according to the Bureau of Labor Statistics).

It is important for employers to educate employees on this coverage.  Make sure they are aware whether or not you are providing group disability insurance and what they need to do to be covered under your policy.  If you don’t offer disability insurance, inform your employees and encourage them to purchase their own coverage in order to protect their income.  You might consider offering a voluntary disability program if you aren’t providing a group disability plan.  There is no cost for you to offer this option, but it gives your employees the opportunity to purchase it on their own if they desire the coverage.

Many workers think they are safer than they really are. They are underestimating their risk of disability and too often don’t think about protecting their income.  Encourage your employees to take steps to protect themselves financially by purchasing disability coverage (either through the policy you provide or through a policy they purchase on their own) and to build up adequate savings to sustain themselves should a disability occur. 

In addition to preparing financially, there are steps you and your employees can take to lower the risk of a disability taking place.  The Council for Disability Awareness recommends these healthy lifestyle choices to help lower the risk of a disability occurring:

• About 40 percent of all deaths in the U.S. are premature and are attributed to unhealthy lifestyle behaviors and habits (i.e. inadequate exercise, poor diet, use of tobacco, and misuse of alcohol and drugs.)
• Individuals who live a healthy lifestyle typically live about six to nine years longer than those who don’t.
• Studies have found that workplace wellness programs that focus on helping employees make lifestyle changes are effective in reducing health costs and absenteeism.

• Encourage employees to set attainable goals (i.e. reducing body mass index (BMI) by 10 to 15 percent in one year).
• Provide support for reaching goals (i.e. free access to a weight management plan such as Weight Watchers).
• Provide rewards and recognition when goals have been achieved.

The goal is to inspire behavior changes by providing tools and support that effectively help an employee reach attainable goals.

Studies indicate that employees have a positive perception of voluntary benefit programs: 

• More than half of employees (52 percent) are interested in being able to choose and pay for voluntary benefit options.

• About 66 percent of employees indicate that voluntary benefits increases the overall value of their benefits.

This newsletter includes information on voluntary benefits. If you are looking for a low-cost, easily administered benefits option to supplement your current program, voluntary benefits might be right for you.

Voluntary benefit plans actually date back to as early as the 1950s when they were known as payroll deduction or salary-savings plans.  Though they have been around for a while, they are increasing in popularity with recent changes in the benefits environment.  In addition, as more insurance companies enter the market for voluntary benefits, there are improved technologies and enhanced products, resulting in better offerings at a lower cost.  

Voluntary benefits are available through employer-sponsored plans.  Employers are able to leverage group purchasing power to provide these products and services to their employees at rates the employees wouldn’t be able to access individually.  Voluntary benefits are a great tool for attracting new employee talent and retaining current employees.  Amid cost cutting measures and cutbacks in company-paid health care, voluntary benefits provide employers an option for rounding out employee benefits options.

Employees who sign up for voluntary benefits usually pay for 100 percent of the premium through payroll deduction.  Most employers do not contribute to the cost of the coverage.

These products are affordable and are popular benefits your employees can take advantage of any time throughout the year, not just when they are sick.  To learn more about voluntary benefits, please contact your Leavitt Group insurance consultant.

There are many ways to enhance your group life insurance plan to better meet end-of-life needs for your employees.  Making these options available for your employees can provide peace of mind for them and their loved ones. Some of the products and services available include the following:

Accidental death and dismemberment (AD&D) – offers insurance protection when a covered accident results in loss of life, speech, hearing, sight, or in paralysis.  This coverage can be made available as part of the company-paid basic coverage, employee-paid coverage, or both.

Will preparation services make will preparation simple for your employees.  Often these services are available for your employees to utilize online, making it easy and convenient for them to complete their will.

Estate planning and resolutions services gives beneficiaries access to legal assistance to discuss matters involved with settling the insured’s will and estate.  Additional estate planning services are often available for a fee through various insurance companies.

These products and services differ depending on the insurance company and plan you choose.  Contact your Leavitt Group insurance consultant to learn more about what options will best fit the needs of your organization.

• Primarily used for temporary coverage.
• Typically purchased for a specific amount of time, generally one, five, 10, 20, or 30 years.
• Premiums are usually less expensive than permanent life insurance.
• Can be renewed at the end of the term; however, you must re-qualify for coverage based upon your current age and health conditions.  The premiums on the renewal policy will most likely be higher due to increase in age of the insured.   
• Benefits from a term life policy are paid to the beneficiaries only if the insured dies within the specified period of time for which the policy was written.  
• Does not build cash value.