Month: May 2019

What is product recall? Are you at risk?

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What is product recall? Are you at risk?

 

Product recall – Wikipedia

  • A product recall is a request from a manufacturer to return a product after the discovery of safety
    issues or product defects that might endanger the consumer or put the maker/seller at risks of
    legal action.

Who may be at risk?

  • Manufacturers
  • Wholesale distributors
  • Business-owners

Yes, the manufacturer is usually held liable for injury resulting from defective products – any
seller can also be held responsible.

A wholesale distributor’s exposure to product liability risk is increased if the risk uses its own
packaging and labels.

  • For example: If the distributor modifies and repackages instructions and warranties. Also, if the
    risk installs, services, or does repair work for the product they can be brought into a liability
    suit and held liable for injury resulting from the defect.

Two exposures exist during a product recall – First and Third-party exposure.

First party loss includes damage to a company’s reputation, loss of income, notification expenses,
costs to dispose of the products and other extra expenses.

Third-party loss covers your legal liability to pay damages as a result of the recall. These costs
may include the recall expense of the product as well as the cost to repair or replace the product.
This can also affect lost Revenues of Others as a result of the recall of the product and other
expenses to replace the product.

In addition to maintaining proper insurance, it is important to apply risk management techniques to
help reduce or eliminate the exposure of a recall.

If you would like further information or would like to discuss this important topic, please feel
free to contact Roseanne Gedman at 908-598-7853 or Roseanneg@slcinsure.com

March, 2019

What is an Employee Leasing Arrangement?

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What is an Employee Leasing Arrangement?

 

One entity, the leasing company, leases its employees to another entity, the client
company. The client company fired its employees so they can be hired by the leasing company, and
are leased back to the client company. The employees will perform the same jobs they were
performing prior to this arrangement.

The leasing company performs payroll preparation, record-keeping, and insurance coverage such as
workers compensation and group health benefits to the employees.

There are advantages to entering into this contractual relationship between the leasing company and
the client company:

  • Hiring new applicants
  • HR Administration-this is a time-consuming process and allows someone else to handle your HR
    headaches so you can focus on what you do best.
  • Payroll reporting
  • Filing payroll tax reports
  • Lower rates for health insurance and other benefits
  • Terminating employees

Written contracts between the leasing company and the client company are necessary to establish the
relationship between the two parties and to establish which company will be responsible for
specific duties and responsibilities with regard to the leased employees.

The workers’ compensation insurance policy carried by the leasing company must include the following
endorsements:

  • The Alternate Employer endorsement.
  • A Waiver of Subrogation naming the client company.
  • An Endorsement that gives the client company 30 days notice of cancellation or nonrenewal.

The client company must maintain a workers’ compensation policy. The client company must be
protected if they hire a worker who is not subject to the employee leasing arrangement. It is
imperative the leasing company maintain workers compensation coverage on the leased employees.

As with advantages, there are also some disadvantages:

  • Less control over employees – as there may be lack of communication. The employer only defines
    the hiring standards.
  • Health Insurance changes since you are at the mercy of the professional employer organization’s (PEO) choices.
  • Impersonal – hope that your PEO treats your employees as if they were its own.
  • Adjustment period – it will take time for you and your employees to adjust to the
    new method and processes.

A co-employment will exist. You will still be in charge of your employees in terms of wages, hours
and management. Your PEO will assume responsibility over benefits and compliance issues. You are
still in charge of your business, and how it is run.

Choose what is best for you and your company. A PEO can take many tasks out of your hands so you
can focus on running your business successfully.

April, 2019

 

Driving tips to keep safe while driving – Accidents Happen!

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Driving tips to keep safe while driving – Accidents Happen!

 

How can we keep safe while driving? Employees who are hired as drivers for a company are expected
to drive using their best judgment to avoid a preventable accident.

Years of driving experience do not have a bearing on avoiding a preventable accident. A selection
of qualified drivers can help reduce or even eliminate loss severity or frequency.

Implement a driver management program and provide resources and education to implement and maintain
the program. Require your drivers to take a defensive driving on-line course, particularly if they
have one or more violations within any one policy period.

Driver checks –

  • Check your side mirrors.
  • Signal and brake to give other drivers plenty of time to notice your intent.
  • Maintain your vehicle.
  • Reduce speed on curves.
  • Load cargo wisely.

Set qualification standards – consider required job knowledge, operating skills required, a safe
driving record, physical requirements, Good attitude and employee morale. The foundation of
successful driver management relies on the selection process of qualified applicants.

Effective hiring tools

  • Application
  • Preliminary interview with a management team member
  • A written exam
  • Road tests
  • Prior job history and investigation

Many insurance carriers offer driver training materials, as well as in-house seminars available to
assist clients in controlling risks.

Driver Evaluation Forms and checklists are also available. Please contact me for a sample checklist
and to set up some risk management loss control measures so you can reduce or eliminate collisions
by improving driver performance.

February, 2019

Broaden Your Homeowners Endorsements

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Common Homeowners Endorsements To Broaden Your Coverage

Home insurance policies are typically quite broad to apply to as many customers as possible. So, it’s not uncommon for homeowners with unique needs for their home to require additional coverage. These additional policies are known as homeowners endorsements, and they can be valuable tools to ensure that you have the type of coverage you need.

There are many different types of homeowners endorsements to choose from, but some of the most common ones that you may want to consider for your home are listed below.

Home business endorsement: As people begin the transition to work out of their homes, it’s important to consider getting business insurance, as standard homeowners policies won’t cover business equipment or legal liability associated with the business and its respective assets.

Inflation guard endorsement: Inflation is an important financial reality you must consider when planning for coverage and future budgeting. Inflation guard endorsements automatically increase your insurance cost by a relevant percentage each year, keeping up with inflation trends.

Earthquake endorsement: Based on your location in the United States, individuals living in high-risk areas have the option to add on a homeowners insurance endorsement. In the event of an earthquake, this feature will cover the costs of repairing the home and other damaged structures.

Sewer backup endorsement: Having a sewer backup is not only discomforting, but it can be dangerous to a resident’s health and quite costly. Adding a homeowners endorsement to cover sewer backups and its associated water damage is a relatively inexpensive add-on.

Watercraft endorsement: Homeowners endorsements can even expand to cover property purchased resides at a household. For example, a watercraft endorsement will add coverage for a boat you own and also protect it against damages during boating and while docked, even if it’s docked at another location. These policies can include motorcycles and boats, so contacting your home insurance provider will highlight precisely what endorsements you can add.

These five homeowners insurance endorsements are just a sample of the many policies available with your homeowners insurance policy. If you’re interested in any of these specific endorsements, or if you want to explore additional endorsements, contact us today. Schechner Lifson is an independent insurance agency with experienced and caring agents who can make sure you get the right coverage at a price that may just be more affordable than you think.

Valuable Articles Insurance

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What You Need To Know About Valuable Articles Insurance

While the majority of homeowners have appropriate insurance coverage, when it comes to protecting both their home and the possessions inside, all policies have a limit on how much property is actually covered. If you have valuable items inside your home and you’re aware the value to replace them might exceed what your typical homeowners insurance policy covers – valuable articles insurance may be for you.

Whether it be art, jewelry, expensive medical equipment, antiques, collectibles, or something else – you can add valuable articles insurance. This coverage ensures that you can replace and pay for these particular high-ticket items should the unexpected happen.

How valuable articles insurance works

Valuable articles insurance is not a standalone insurance policy, but rather a type of coverage that is added on to a new or existing homeowners insurance policy. So, the first step in exploring whether valuable articles insurance will make sense for you is by getting in touch with your homeowners insurance provider.

There are two different types of valuable articles insurance coverage available:

Grouped Coverage

This is the valuable articles insurance policy that will provide you with broad protection for all of your valuable items as a whole. You may add this feature on to your existing homeowners insurance policy. You may receive upwards of $5,000, with a deductible of $500 or less. Articles do not need to be itemized, nor do you need to provide proof of ownership before getting the coverage.

Itemized Coverage

On the other hand, a valuable articles insurance policy that includes itemized coverage gives even greater protection, as you specify the items for which you want coverage. If any articles need replacing, you’re not required to pay a deductible and will receive a previously agreed-upon payout from your insurance provider. However, articles will have to be listed in advance with proof of ownership.

Which items qualify for valuable articles insurance?

Providers of valuable articles insurance will be able to provide coverage on most property or equipment you deem worthy of this extra protection, so you should speak to an agent to find out more about your specific needs. Generally speaking, items that are most often covered by valuable articles insurance includes the following:

  • Fine art
  • Sports memorabilia
  • Expensive electronics
  • Musical instruments
  • Collections of fine wine
  • Medical devices like prosthetics or scooters
  • High-end fashion items like handbags or shoes
  • Jewelry and loose precious gems
  • Professional sports equipment like bicycles or golf clubs
  • Pedigreed dogs
  • Stamp and coin collections

Whether items of yours are valuable enough to warrant valuable articles insurance is a personal decision. To learn more and consult with an expert – reach out to Schechner Lifson Corporation. Schechner Lifson is an independent insurance agency with experienced and caring agents who can make sure you get the right coverage.

Key Person Life Insurance Plan

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Does My Business Need A Key Person Life Insurance Plan?

Key person life insurance is a type of insurance that protects a business in the event of the unexpected passing of an irreplaceable and critical member of that business. The policy is for the key employees; however, the business is the beneficiary and pays the premiums. If you run a small business that has a handful of irreplaceable members, you may want to consider purchasing a key person insurance plan to protect your company and prepare for the unexpected.

How does key person life insurance work?

If you’re considering key person life insurance, the first step would be to determine what the monetary value of the key individuals in your business is. Once you map out the financial effects of losing that person, whether it’s through lost sales, the cost to find that person’s replacement, or costs to close the business and pay off its debts – you can make a decision. The insurance provider would look at your company’s legal structure and determine how it would work for your unique business. It’s important that the key employees in question provide explicit and written consent to the company to own such a policy.

Do I need key person life insurance?

As every business and their respective employees are unique, there’s no one size fits all situation. That being said, there are some traits and circumstances to look out for.

  • If the reputability and ability to draw new business opportunities are explicitly tied to a single individual, then they could be critical to insure.
  • Some employees, particularly in sales, can be a huge asset in bringing in new business and maintaining pre-existing relationships.
  • When a couple of partners jointly own the business, and each partner would want the opportunity to buy out the others’ shares in the case of death, a key person insurance policy would aid in the financial viability of this scenario.

Key person life insurance can help protect your small business from collapsing under the weight of unexpected circumstances. If you think any individuals are essential to your business, you should definitely consider a key person life insurance policy.

Want to find out more?

Schechner Lifson Corporation is an independent insurance agency that can offer you help in key person life insurance for your small business. With experienced and caring agents, Schechner Lifson Corporation can make sure you get the right coverage at a price that may just be more affordable than you think. Contact us today!

Whole Life Policy Benefits

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How Would A Whole Life Policy Benefit Me?

When shopping for life insurance, you’ll likely wonder whether you should buy term life insurance or whole life insurance. While term life insurance is more common, a whole life policy might be the right fit for you.

Whole life insurance is a lifetime commitment. Once coverage has been paid for and issued, it can no longer be taken back, canceled, or even have its terms reduced. This finality is unique when compared with term life insurance and requires a degree of certainty before purchasing a policy. Be sure to consider your options and look at your custom whole life policy benefits.

To help you get started, here’s an overview of what a whole life policy can get you and what you need to know.

Whole life insurance

Whole life insurance is permanent. As long as you pay the premiums, your policy stands. A unique part of whole life insurance is that it comes with an extra savings component known as the ‘cash value.’ This cash value is essentially a savings account funded by the premiums you pay while living. Your payments slowly shrink the death benefit, which in return increase the cash value component. At one point in time, you may be left entirely with the cash value. As that savings account earns interest and dividends, you will see a minimum yearly return.

Pros and cons of whole life insurance

When deciding whether whole life insurance benefits are right for you, take into account the following factors:

Pros

  • The death benefit is fixed and won’t expire. So, if you buy a $1,000,000 policy when you’re in your twenties and your passing comes much later in life, your family or other beneficiaries will still receive the full death benefit.
  • Because you sign and buy your life insurance policy once, you agree to pay a single premium, and the monthly payments remain consistent. This provides security and value compared with term policies that may increase.
  • The cash value can be looked at as an involuntary savings account.

Cons

  • While the benefits are higher with whole life, the policies do cost more than term policies, sometimes even upwards of 10 times the amount.
  • If you fail to keep up with your payments, you will have to surrender your benefits. Unfortunately, this can happen when people overestimate their ability to pay, with over one-quarter of policies abandoned within the first three years.
  • Due to the high cost, it can happen that people are buying less coverage than they need.

Is whole life insurance right for you?

While the benefits of whole life insurance policies are clear, you’ll have to pay a premium to unlock those rewards. Determining what’s right for you will depend on your unique circumstances. Schechner Lifson Corporation, an independent insurance agency, can offer you help to determine which type of policy is best for you. With experienced and caring agents, Schechner Lifson Corporation can make sure you get the right coverage at a price that may just be more affordable than you think. Contact us today!

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