Month: November 2013

The Best Defense Against Mold Is a Good Offense

Posted on by tucson insurance

Recent natural disasters like Hurricane Katrina have once again put mold in the spotlight.  And since flooding can occur in the winter due to the abundance of melting snow and heavy rains, homeowners need to familiarize themselves with the steps to eliminate mold from their homes.

First, it is important to understand the reasons to keep your home mold free.  According to the Centers for Disease Control, exposure to mold poses a potential health risk.  People with mold sensitivity can find themselves with a stuffy nose, irritated eyes, wheezing, or skin irritation.  Those with mold allergies can have difficulty breathing and experience shortness of breath.  If someone with a weakened immune system or chronic lung disease is exposed to mold, they can develop mold infections in their lungs.  The point is to eliminate the problem before it becomes a health issue.

As we know, mold develops because of excessive moisture, so the key to prevention is to identify and eliminate moisture from developing in the first place.  The Insurance Information Institute recommends that homeowners take the following precautions:

Reduce humidity in your home

 

  • Keep the humidity level in your home between 30 and 60 percent by using air conditioners or dehumidifiers.
  • Use exhaust fans in kitchens and bathrooms.
  • Never install carpets in damp areas, such as basements or bathrooms.
  • Never let water accumulate under houseplants.

 

Use mold-reducing products

 

  • Clean bathrooms with bleach or other mold-eliminating products.
  • Add mold inhibitors to paint before application.

 

Keep your home and belongings dry

 

  • Fix leaky pipes, faucets and hoses.
  • Keep gutters free of leaves and other debris.
  • Maintain your roof to prevent water from seeping into your home.

 

Be careful after a flood or other water damage

 

  • ·Properly dry or remove soaked carpets, padding and upholstery within 24 to 48 hours after a flood to prevent mold growth.  Anything that cannot be properly dried should be discarded.
  • Remove standing water as quickly as possible.  Standing water is a breeding ground for microorganisms, which can become airborne and inhaled.
  • Wash and disinfect with bleach, or other mold-eliminating products, all areas that have been flooded.  This includes walls, floors, closets and shelves, as well as heating and air-conditioning systems.

 

If you find that despite your best efforts you have mold problems, there are two options to remediate the situation.  The first is to clean it yourself.  If you choose this option, you should limit your own exposure to the mold and its spores.  The Environmental Protection Agency recommends that you wear certain protective gear during cleanup, most importantly an N-95 respirator, which can be purchased at most hardware stores.  Some N-95 respirators look like a paper dust mask with a nozzle on the front, while another popular style is made of plastic or rubber and has a removable cartridge that traps the mold spores.  No matter what style you use, in order to be effective, the respirator must fit properly.

The second item the EPA recommends is a pair of long gloves that extend to the middle of your forearm.  If you are using a mild detergent, ordinary household rubber gloves are fine.  If you are using a disinfectant, chlorine bleach, or other strong cleaning solution, you should use gloves made from natural rubber, neoprene, nitrile, polyurethane, or PVC.  The third protective piece of equipment you should wear are goggles without ventilation holes. 

If there are still signs of mold after cleaning or if the mold returns, you should choose the second option and have the area cleaned by professionals who specialize in mold removal.

Helping Employees Make Their Comeback After a Work-Related Injury or Illness

Posted on by tucson insurance

The fallout from an extended injury or illness can devastate employees and their families financially, physically and mentally.  Trying to live on decreased income from a workers’ compensation claim, coupled with family members having to take on additional responsibilities the disabled person cannot perform, can put a real strain on relationships.  As time passes, the additional problem of becoming increasingly isolated from their former life raises tension levels in an already highly charged situation.

This scenario occurs more often than you might think. According to the U.S. Bureau of Labor Statistics, in 2002, a total of 1.4 million injuries and illnesses in private industry required recuperation away from work beyond the day of the incident.  What’s even more surprising about the Bureau’s findings is that injuries and illnesses to workers aged 20 to 44 accounted for 64 percent of all injured workers.  Workers aged 65 and over accounted for only 1.7 percent of total injuries and illnesses.  The fact that the majority of workers on extended leave are workers who will need to return to work clarifies how important setting the stage for their comeback really is.

Leslie Yerkes, an organizational behaviorist and president of Cleveland, Ohio-based Catalyst Consulting Group, Inc. notes, “Finding and keeping good people provides a competitive advantage for organizations.  So, keeping the bond strong when employees are on family leave, working virtually or out on workers’ compensation is critical to not losing that employee to a competitor and to facilitate a rapid and smooth transition back into the workplace.”  She recommends the following steps for maintain a strong connection and facilitating a smooth re-entry:

  • Clarify expectations with the employee early on as to what they can and want to do.  If job reassignment will be necessary upon their return, let them know that you are willing to explore possible options.  Get a feel for the kinds of jobs they might be interested in and realistically explore how and where they can fit in.
  • Assign a communication buddy to the individual who can commit to having a regular weekly update conversation with the absent employee.  Make sure that the employee has a means to receive critical information while absent from the organization.
  • Include the absent employee via phone teleconferencing in key events that will affect them directly.  This is critical when it comes to changes in company/departmental policies or revisions in work floor procedures.  You don’t want an employee to return to work only to be reprimanded the first day back for violating a policy change that they were unaware of.  It increases the feeling that they have been left behind.  Those negative feelings might continue to grow until the employee feels compelled to find another job.
  • Encourage the work group to stay connected and communicate to the disabled employee that they care about their recovery.  It’s like Hallmark always says, “When you care enough to send the very best.”  Make sure an absent employee knows that they are truly missed by their co-workers. And most importantly, make sure the employee knows that their bosses are among those people!

The lesson to be learned from all of this is simple.  Transitioning back into the workplace begins as soon as the employee starts their leave.  If you plan for their re-entry from the outset, it will be as seamless as it should be.

Are You at the Insurer’s Mercy If You Total Your Car?

Posted on by tucson insurance

You treat your car like you would a child. You take care of it inside and out and no one could ever tell it recently celebrated its tenth birthday. Over those ten years, you and your auto have had some great times together, but now the unthinkable has happened and your car has been “totaled.” Does that mean that the two of you have to say good-bye?

Totaling your car means that you have wrecked it badly, so much so that it is up to your insurer to decide if it is worth fixing. The insurer’s decision is based on the car’s worth. Minor damage to a very old auto could result in your carrier deciding to total it, while major damage to a brand new one might not. Auto insurance claims adjusters typically determine a car’s cash value through their company’s proprietary database of prices.

The decision to total a car varies with insurers. Some companies will total a vehicle if after the accident it is only worth 51 percent of its cash value. Others will decide to total the car at 80 percent. The insurance company pays you the car’s actual cash value less any deductible and your car is sent to a salvage yard to be auctioned off. The end result is usually an auction bidder buying the car for parts. The insurance company keeps the auction money, which offsets any costs over the amount they have collected in premiums.

If you feel your car has been unjustly condemned to salvage, do you have any way to protest the decision? You do have some rights, but they are limited. You enter into a contract with your insurance company when you buy car insurance. That contract states that you can’t coerce your insurer to pay out more than your car is actually worth. However, your carrier is obliged to ensure that you are “made whole.” That means the company is required to put you in the same condition you were in before the accident happened.

If your car has been wrecked but you want to have it repaired, you should be able to do so. Tell your claims adjuster right away that you want to keep the car. Keep in mind that you will have to pay for the repairs yourself, but your insurer still has to pay you the car’s actual cash value, less the deductible and less whatever the car would have brought at auction.

Before you decide what to do with the car, think it through. If you give up your car but later change your mind, it will be difficult to buy it back when auctioned. In most cases you cannot attend the auction without an auto salvage or auto dealer’s license. Newer model cars bring higher prices at auctions because their parts are highly desirable. That amount is probably more that what the company paid for your claim, so don’t be surprised if your carrier decides to send it to salvage in spite of your objections.

Remember, if you keep the car and it is seriously damaged, you will only have a small part of the money needed to repair it. If it isn’t repairable, you will be left with having to dispose of the vehicle.

If you go ahead with repairs, be sure the car is completely repaired. When the insurer deemed your car to be totaled, your state’s department of motor vehicles (DMV) was notified. That’s because your policy expired with the loss of the vehicle. Insurers can refuse to completely underwrite a car that’s been totaled and repaired if the vehicle doesn’t pass a DMV inspection. As long as it passes, however, you should have no problem buying liability insurance, although buying comprehensive and collision insurance may be more difficult. Keep in mind, some insurers won’t provide this type of coverage for a previously totaled car.

Taking the Worry Out of Using the Internet

Posted on by tucson insurance

Asset protection is a major consideration for any business.  As you well know, assets come in both the tangible and intangible variety.  And when you talk intangibles, the first thing that usually comes to mind is data.

The majority of companies doing business today rely upon the Internet.  While it has opened up global-sized opportunities, it has also exposed businesses to proportionate risk.  Understanding what the risks are and managing them is crucial to a company’s survival.

Depending upon your exposure, your standard property and commercial general liability insurance may not adequately cover the risks of an external cyber attack or network security failure due to natural causes.  If your business is heavily dependent upon Internet usage or if your company performs the majority of its basic functions electronically, you may want to consider specialized cyber-risk coverage as a stand-alone policy.  Each policy is geared to specific company requirements, including the technology being used and the level of risk involved; and both first- and third-party coverages are available.

Typical aspects of coverage include:

  • Loss/Corruption of Data – This coverage deals with damages to or destruction of vital information resulting from viruses or malicious code.
  • Business Interruption – If a company’s network is attacked and that attack limits its capability to conduct business, the loss of income is covered.  Coverage also includes extra expenses, forensic expenses and business interruption losses.
  • Liability – This coverage includes legal defense costs, settlements, judgments and, in certain circumstances, punitive damages that a company may suffer as a result of breach of privacy due to theft of data; transmission of a computer virus which causes financial loss to third parties; a breakdown of security which results in network systems being unavailable to third parties; providing IT professional services; and allegations of copyright or trademark infringement, libel, slander or defamation in the company’s Web site.
  • Cyber Extortion – This covers the resolution of an extortion threat against a company’s network, and the cost of hiring a security firm to track down and negotiate with blackmailers.
  • Public Relations – This covers those costs associated with restoring public confidence in the company after a cyber attack.
  • Cyber Terrorism – This coverage includes terrorist acts covered by the Terrorism Risk Insurance Act of 2002 (TRIA) and, in some instances, it may cover terrorist acts beyond those stated in TRIA.
  • Identity Theft – This provides access to an identity theft call center to report stolen customer or employee personal information.

The cost for coverage varies with the type of coverage required. A company can purchase a policy that covers a limited number of threats to its system’s integrity for a few hundred dollars, or it can spend thousands of dollars on a policy that covers the gamut of high-tech dangers.  It is generally believed that cyber insurance policies will become less expensive as they become more widely needed.

Everything You Always Wanted to Know About Auto Theft

Posted on by tucson insurance

If you’re like most people, you believe you’re pretty well versed when it comes to protecting your car from thieves.  If that were the case, the FBI’s National Crime Information Center wouldn’t be reporting these chilling statistics:

 

  • Every 27 seconds, a motor vehicle is stolen in the United States.
  • The odds of a vehicle being stolen were 1 in 196 in 2000.
  • The odds are highest in urban areas.
  • Only 14.1 percent of thefts resulted in arrests during 2000.
  • The FBI’s 2002 Uniform Crime Report, released October 27, 2003, indicates there were more than 1.2 million motor vehicle thefts in the United States in 2002 with an estimated value of approximately $8.4 billion dollars.
  • Only 65 percent of stolen vehicles were recovered in 2002.

 

These statistics paint a serious picture that reminds us not to take our vehicles for granted.    Many times we forget basic prevention techniques that can put our cars in jeopardy.

For example, when you leave your car, never leave the motor running – even if you think you will only be gone a couple of minutes.  Those few minutes are all it takes for a would-be car thief to easily drive away in a new vehicle.

When you park your car, be sure to roll up the windows and lock the doors.  There are no exceptions to this rule, even if you park in your own driveway.  It’s not uncommon for thieves to try a door handle of a car in driveway because they assume that it was probably left unlocked.  If you have a garage, park your car in it and lock the garage door, even if you intend to use the car later on.  It may seem like a lot of trouble if you are planning to leave the house again soon, but it’s better than going to the garage only to find your car missing.

When you park at your destination, turn your wheels sharply toward the curb.  This makes it very difficult for thieves to tow the vehicle.  Always put on your emergency brake and leave the transmission either in park or in gear.  If a valet parks your car, only leave the ignition key with the attendant.  It goes with out saying that if you park at night, park in busy, well-lit areas.

Think about equipping your car with various anti-theft devices.  Ask about car insurance discounts for anti-theft devices such as alarms, window etchings, and anti-hot-wiring devices.

Finally, when you buy car stereo equipment, be sure to choose items that can be removed
and locked in the trunk.  Nothing is more tempting to a car thief than to see if he can make that expensive audio equipment his own.

Stress Management Programs Decrease Worker Illness, Increase Productivity

Posted on by tucson insurance

Lowering the stress level of your corporate environment may not only improve your employees’ well being but also boost your bottom line.  The demands on today’s workers are increasing and along with it, workplace stress.  Decreased productivity and morale and increased sickness, absenteeism and accidents are just a few of the side effects that can be counteracted by making yours a “healthy organization.”

Job stress, as defined by the National Institute of Occupational Safety and Health (NIOSH), is the harmful physical and emotional responses that occur when the requirements of the job do not match the capabilities of the worker.  A stressful corporate environment should not be confused with a challenging work environment, which can actually energize employees to master new skills.  When, however, the job demands cannot be met, the excitement of challenge turns to exhaustion and stress. 

Stress causes the body to go into its programmed, biological “fight or flight” response where the nervous system is aroused and hormones are released.  Unresolved stressors keep the body in this activated state leading to physiological wear and tear.  Some of the early signs of job stress include mood and sleep disturbances, upset stomach and headache, and disturbed relationships with family and friends.  This sets up a scenario for increased illness and accidents.  In fact, the Journal of Occupational and Environmental Medicine reports that health care expenditures are nearly 50 percent greater for workers who report high levels of stress. 

Both working conditions and worker characteristics cause workplace stress.  It is true that what is stressful for one person may not be for another. However, scientific evidence suggests that certain working conditions, such as excessive workload demands and conflicting expectations, cause stress to most people. 

NIOSH researchers examined so-called “healthy organizations,” or those that have low rates of illness, injury and disability and are also competitive in the workplace.  NIOSH found that these companies have the very positive combination of low-stress work and high productivity.  Specific organizational characteristics that were identified included recognition of employees for good work performance, opportunities for career development, an organizational culture that values the individual worker and management actions that are consistent with organizational values. 

While it is helpful to provide stress management training and employee assistance programs to help your employees cope with difficult work situations, also implementing organization change to become a more “healthy organization” has been shown to cause the most direct, long-lived results. 

To create a “healthy organization,” NIOSH suggests that companies:

– Ensure that workload is in line with workers’ capabilities and resources;

– Design jobs to provide meaning, stimulation and opportunities for workers to use their skills;

– Clearly define workers’ roles and responsibilities;

– Give workers opportunities to participate in decisions and actions affecting their jobs;

– Improve employee communications;

– Provide opportunities for social interaction among workers; and

– Establish work schedules that are compatible with the demands outside the job.

There is no one-size-fits-all program to achieve these goals.  Factors such as the size and complexity of the organization as well as available resources and unique types of organizational stress must be considered.  In all situations, however, the process for developing effective stress prevention programs should include problem identification, intervention and evaluation.  Employers can either hire outside consultants or work through the process internally. 

In the identification stage, information should be gathered about employee perceptions of their job conditions and level of stress and satisfaction.  This can be accomplished through group discussions or formal surveys.  If possible, objective measures such as absenteeism, illness and turnover rates should also be considered.  The collected information should help identify the offending job conditions and the location of stress problems.

Next a set of intervention strategies should be designed and implemented.  Before any intervention occurs, employees should be informed about the changes.  The last step is evaluation to determine if the desired effects are being achieved.  Interventions should be evaluated on both a short and long-term basis as some steps may produce initial effects but not long-lasting change.  To create true and permanent organizational change, evaluation must be a continuous process.

Do You Know How Your Deductible Affects Your Homeowner’s Insurance Premium?

Posted on by tucson insurance

As elementary school children, we were first introduced to the concept of ratios, or how one number relates to another number.  Back then we tended to think that like almost everything else we were learning, ratios were just one more forgettable piece of information we would never use.  Of course, we were wrong.  Ratios are something we constantly come in to contact with, even when it comes to our homeowner’s insurance.

The ratio between the policy’s deductible and the premium is very real.  When the deductible increases, the premium decreases.  With a higher deductible the carrier is transferring more of the risk to you.  Yet, four out of ten Americans carrying homeowner’s insurance do not understand that simple ratio and its consequences.

The Insurance Research Council (IRC) recently conducted a study that indicated only 37 percent of homeowners and 48 percent of renters, who have homeowner’s insurance, knew their policy had a deductible.  These same respondents also answered incorrectly when asked how a deductible increase affects a premium.  They responded that the premium either increased, stayed the same, or they did not know.

The data for the IRC’s report, Public Attitude Monitor 2005, Issue 2, came from a survey conducted by TNS NFO, a market research company.  The survey was designed as a self-administered checklist mailed on January 1, 2005, to selected households in the U.S.  There were more than 55,000 respondents ages 18 or older who answered six questions about homeowner’s insurance.

Many Americans may overlook the easiest way to reduce insurance costs simply because they do not understand the relationship between their policy’s deductible and the premium.  The Insurance Information Institute, in their publication entitled, 12 Ways To Lower Your Homeowner’s Insurance Costs, has this to say about the relationship between the two:

“Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay a claim, according to the terms of your policy.  The higher your deductible, the more money you can save on your premiums.  Nowadays, most insurance companies recommend a deductible of at least $500.  If you can afford to raise your deductible to $1,000, you may save as much as 25 percent.  Remember, if you live in a disaster-prone area, your insurance policy may have a separate deductible for certain kinds of damage.  If you live near the coast in the East, you may have a separate windstorm deductible; if you live in a state vulnerable to hail storms, you may have a separate deductible for hail; and if you live in an earthquake-prone area, your earthquake policy has a deductible.”

The next time you review your homeowner’s coverage, be sure to talk with your agent about how increasing your deductible will impact your premium.  It may surprise you just how much you can save.

The John Foxworthy Tucson Insurance $500 Recovery Fund Postcard

Posted on by john foxworthy

Tucson Insurance AgencyWhat’s happening in the personal lines insurance world and why you should care.  Property insurance is becoming a problem for most areas of the country including Arizona.  Losses from wildfires, tornadoes, hail, flooding, and storms are crushing insurance carriers profits. 

This has prompted the “car insurance price war” to heat up even more so. Why? Because the profit margin in auto insurance is much better than that of property (home) insurance.  This is why you see direct writer car insurance companies growing rapidly, however, they are shunning property insurance. They will offer home insurance but will often farm it out or broker to another company willing to take the risk.  While this is becoming more common it does not have to be the norm.

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To date the “World’s Ugliest Postcard” has saved Tucsonan’s approximately $150,000.00!! Call me at (520) 444-8607 today.

Is Stress a Ticking Time Bomb in Your Company?

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There seem to be very few constants in modern life; but one thing we’re able to count on is that stress is a normal part of our world.  It permeates almost every part of our lives and sometimes the best we can hope for is to keep it under control.

Finding ways to keep stress under control is a major priority for business owners when they are developing their Human Resources policies.  The Centers for Disease Control and Prevention (CDC) and the Bureau of Labor Statistics (BLS) have researched how much time is lost at the workplace due to employees missing work to deal with stress and anxiety disorders.

When compared with all nonfatal injury and illness cases, the anxiety, stress, and neurotic disorder cases involved a higher percentage of long-term work loss.  In 2001, 42.1% of these cases involved 31 or more days away from work, with the average number of days lost totaling 25.  Compare that to the average number of days lost for all other nonfatal injury and illness cases, which was 6.

There is also the issue of compensation claims that are filed for stress-related illnesses. An employee cannot sue in court for these types of claims if the stress is the result of the ordinary course of work.  However, if the employee can prove that the stress is the result of on the job harassment or discrimination, they can then pursue that claim in court.

If an employee is filing a stress claim that cannot be litigated, they have two options.  If they are seeking a monetary award, they file through workers’ compensation.  In this instance, they must prove that the stress has risen to a level, which makes it impossible for them to continue to work.

If they are merely seeking unpaid leave, they file under the Family Medical Leave Act (FMLA).  Under this statute, they must prove that the level of stress is high enough to meet the definition of a medical condition as outlined in the Family Medical Leave Act.  This may or may not be the way it is defined by the American Medical Association.  If they prove their case, they are entitled to three months leave.  Keep in mind that your company must have 50 or more employees for one of your staff members to file under the FMLA.

For companies with 15 to 49 employees, workers can file stress claims under the Americans With Disabilities Act (ADA).  They can be awarded leave time sometimes over and above what FMLA provides.  However, historically the courts have not been welcoming of stress-related claims filed under the ADA unless the employee can prove discrimination.

What can you as an employer do to lessen the number of stress-related claims?  Begin by making the fair treatment of employees at every level a cornerstone of your Human Resources policy.  You should also be sure that your Human Resources Department has an open-door policy when it comes to employee grievances.  This means that employees can file complaints or grievances against any member of the staff without fear of retribution.  Finally, consider instituting an employee counseling program managed through your health insurance carrier.

The importance of any steps you take to alleviate workplace stress will be of special importance if you are hit with a stress-related claim.  Documentation is key to winning such a case.  The other important factor in your success is turning over the claim to your workers’ compensation carrier in a timely manner to give them as much time as possible to investigate the legitimacy of the claim.