The Loss of a Key Person

What consequence can your business face from the loss of a key employee?

As a business owner you try to protect your business against lost of physical assets, but what about lost of a key employee? Studies show the probability of losing a key employee is more likely than a loss due to fire or most other perils. It increases to 17 times at age 50, and to 23 times at age 55. Furthermore, about one out of three individuals dies during work life with consequential loss to his/her business.

In addition most other loss due to perils are temporary; locations can be rebuilt and office supplies can be repurchased. In contrast a new hire may need several months or sometimes years to be as productive as his/her predecessor. The deceased employee may also be impossible to replace.

How to determine a Key Employee?

Every corporation has at least one key executive or an employee who makes a substantial contribution to the operation, profitability and success of the business. Any individual that has critical intellectual information, sales relationships, bank relationships, product knowledge, and/or industry contacts that may adversely affect profits in the event of their absence, may be considered key.

Insuring a Key Employee

Although life insurance cannot ever fully replace the value of a key employee, it can indemnify the business for the financial setbacks that can occur. Life insurance can provide the business with needed funds to keep the business running, to assure creditors that their loans will be repaid, to assure customers that business will continue operations, to cover the special expenses of finding, hiring, and training a replacement.

Visit http://www.vintageinsservices.com/Loss_of_Key_Employee.html  for more information on how Key Person Insurance may work for your company.

Laws to Protect Teen Drivers

Can stiffer driving license laws reduce collisions and keep teens safer on the road?

Over the years states have examine ways to reduce the rates of teen drivers fatality. There have been five rigid elements introduce to law to help reduce this concern. The analysis done by the Institute for Highway Safety (IIHS) and Highway Loss Data Institute found that graduated driver's license (GDL) can reduce collision fatalities by over 9,500 per year.


If the state you live in don't have these laws, this is a practice to implement in your own home to develop good habits.

1. Permit at age 16 - which gives teen drivers more time to mature and ensure supervision while learning to drive. 
2. Minimum License Age of 17 - Studies have shown the older the teen driver the fewer fatal car crash.
3. More Practice - A minimum of at least 65 supervise practice hours. Studies shows that practice makes perfect and the real world experience. Most accidents tend to happen once the teen is licensed.
4. No Teen Passengers - Other teen passengers can be a distraction and contribute to the increase in collision rate. This law was adopted in over 16 states and proven to save lives.
5. Limited Night Driving - No driving after 10 PM. This is key to reducing teen collision and fatal crash rate. 

To find out more about how your state rate with Law to protect teen drivers visit www.iihs.org/gdl.

10 WAYS TO REDUCE YOUR INSURANCE COST

If you are like most Americans you are looking for ways to cut cost in every corner. While I can’t advise you on other areas of your life, I can offer tips of how to reduce insurance cost.     

                                                

1. Investigate coverage with independent brokerage (like us) – Independent brokerages represent many insurers with different products and services to meet their client’s needs, as well as budget. Also they can provide you with that unusual coverage, not available in a voluntary market. Let your independent agent do the shopping for you.
2. Increasing your insurance deductible – Increasing your deductible can help reduce your insurance premiums. Before increasing deductible, please consider how this additional upfront out-of-pocket cost may affect you.
3. Multi-policy discount – having your home, auto and /or umbrella coverage with the same company can give you discounts on your policies. Insurance companies like consumer loyalty and would reward for that.
4. Ask for credits – Many costumers forget to mention whether they have replaced or updated their roof, electrical, heating or pluming system. These updates allow for as much as 20% discounts on your home/property coverage. Consider taking the defensive driving course if offered in your state. There are many discounts available, contact your agent for more information.
5. Scaling back on coverage- Consider removing non-critical coverage, such as rowing or rental reimbursement as many of these coverage can be paid for out-of-pocket are may be available though other affiliations or memberships.
6. Carefully consider removing physical damage coverage on your older vehicle – (This is not always a good idea) However, if you have a vehicle that’s over 8 years old, this may be an option. Consider the current value of the vehicle, to your insurance premium to see whether it would make sense.
7. Alternative Risk Management – Is there something else you can do to manage this risk if getting insurance is not a financial option? Your valuables can be scheduled on your property insurance policy, but if that’s too costly consider another option. It might less costly to keep your valuable in a safe, rather than scheduling them on your insurance policy.
8. Downsize - (when there is no other option) one people are collectors of vehicles such as cars, motorcycles, ATV, jet skis and more. You start off with one, and then your yard is full with collectibles. Consider selling some of these items that you can live without. Most of these items require insurance and getting rid of them can free up some well needed cash. Cancelling insurance prior to giving up possession of prior can expose you to additional risks.
9. Your agent knows you – your agent will be familiar with you and your circumstances, not a consumer website. Some people shop on-line and miss out on many benefits available to them. When you get that personal touch, you know the other person on the line understands you and your unique needs.
10. Does this make sense for your situation? – When deciding on any changes or termination of coverage, please consider whether this is right for your situation should you incur a lost. Only you know your finances and what you cannot afford to absorb. 

Does Workers Compensation Insurance apply to your business?

Let's say you’re the owner of a flower shop with four employees located in the great city of Brooklyn. You have done everything you needed to do to protect your business from liability to customers and patron of your storefront. So far, it seems like all bases are covered. However, there is one thing missing that can put your business at great risk.

While you have protected your business from patrons of your establishment, what about your employee? Did you know that many companies regardless of size are greatly impacted by suit due to injuries that happens on the job? Well we have great news Workers Compensation Insurance can protect your employees for on the job injuries.

What Does Workers Compensation Insurance do?

Workers compensation insurance covers the cost of medical care and rehabilitation for workers injured on the job. It also compensates them for lost wages and provides death benefits for their dependents if they are killed in work-related accidents, including terrorist attacks. The workers compensation system is the “exclusive remedy” for on-the-job injuries suffered by employees.

What about off the job injuries?

States like New York and New Jersey requires employers to purchase an additional coverage, which allows employees to be covered for off the job injuries. This coverage can be paid for a minimal premium solely by the employer or with contribution from the employees, and covers up to 60% of wages (max benefit applies). This plan typically covers the 6 months of wages paid prior to any other disability benefit kicking in.
Get more information on State Disability Benefit Insurance.

Read more about the penalties and liabilities for not have State Disability Benefits. Primary