Renters Who Think They Don’t Need Insurance Are at Risk

Renters often overlook the value of their own property

They may not realize that they could be held financially liable if another person is injured (or if that person’s possessions are damaged) while at their apartment, rented home, dormitory or off-campus housing.

Renters insurance is smart and affordable

Renters insurance can help with all of these issues — and we can help you find a solid renters policy that is remarkably affordable.

Many landlords, colleges and universities require renters insurance. But even if this isn’t a stipulation of your rental agreement, it simply makes smart financial sense. Most coverage is quite affordable, averaging just $187 a year in the U.S.

Consider the value of your furniture, mobile phone, computer, jewelry, sports equipment and wardrobe. The average renter owns $20,000 to $30,000 worth of goods.

For pennies on the dollar, renters insurance can help you protect the value of those items and shield you from the financial consequences of a lawsuit if someone blames you for their loss or injury. You may also get help with the cost of moving if your rented unit becomes uninhabitable.

How we can help
  • Select an appropriate policy based on your assets and financial risk
  • Pinpoint the deductible you’re comfortable carrying, which is how much you’d pay on a claim before the insurance kicks in
  • Identify whether you should insure your goods for actual cash value (how much they are worth at the time of loss) or replacement value (how much it would cost to replace them with items of similar value and quality)
  • Provide proof of insurance if requested by your landlord
Our clients

We are pleased to insure apartment and home renters, as well as students living in dormitories or other campus housing.

What standard renters insurance covers
  • Storm damage
  • Accidental breakage and damage
  • Theft
  • Temporary living expenses if you are displaced from your rental
  • Personal liability to cover your responsibility for another individual’s medical expenses, lost wages or property replacement
Additional (optional) policies and endorsements
  • Money, bank notes and coins
  • Business property
  • Securities and negotiable instruments
  • Watercraft and related items
  • Jewelry and furs
  • Firearms
  • Silverware and goldware
Service Highlights
  • Customizable coverages, limits and deductibles
  • Policies built to protect your unique assets
  • Responsive, friendly claims professionals
  • Easy claims reporting process
Get in touch today

Even if you’re not sure you need renters insurance, give us a call or send us an email and we’ll talk — no obligation. We’ll explain how you can make sure you’re fully protected.

Reach out to our Personal Insurance team.


This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2024 Applied Systems, Inc. All rights reserved.

Creating an Effective Emergency Evacuation Plan for Municipalities

Green evacuation sign which is a good way to identify exits during an emergency evacuation plan in a municipality building

Building an emergency evacuation plan for your municipality involves thoughtful preparation and consideration of potential hazards

Whether it’s a town hall, community center, or other municipal facility, follow these key steps to ensure a well-organized and effective evacuation plan: 

  1. Assess Hazards: Begin by identifying potential risks specific to your municipality. Consider natural disasters (such as floods, storms, or earthquakes), fire hazards, chemical spills, and other emergencies that could impact your buildings. 
  2. Emergency Response Team: Appoint a dedicated emergency response team. These individuals should be well-trained and responsible for coordinating and executing the evacuation plan during emergencies. Designate floor wardens or emergency coordinators for different areas within your buildings. 
  3. Clear Evacuation Routes: Create easy-to-understand evacuation maps for each municipal building. Highlight primary and secondary evacuation routes, assembly areas, and the locations of essential emergency equipment (such as fire extinguishers and first aid kits). 
  4. Employee Training: Regularly train municipal employees, tenants, and visitors on evacuation procedures. Ensure they know how to respond to various emergencies and where to gather during evacuations. 
  5. Effective Communication: Establish communication protocols. Use alarms, public address systems, or text notifications to alert occupants about emergencies and provide evacuation instructions. 
  6. Accessibility Considerations: Take into account the needs of individuals with disabilities. Install ramps, designate accessible evacuation areas, and provide necessary assistance devices. 
  7. Drills and Exercises: Conduct regular evacuation drills. Familiarize occupants with the procedures and identify any areas that may need improvement. Practice ensures a swift and safe evacuation. 
  8. Collaborate with Emergency Services: Establish communication channels with local emergency services (fire department, police, etc.). A coordinated response is crucial during emergencies. 
  9. Periodic Review and Updates: Regularly review and update the evacuation plan. Consider changes in building layout, occupancy, and any new local regulations. 
  10. Post-Emergency Procedures: Develop procedures for accounting for all occupants after evacuation. Facilitate the safe re-entry of the building once authorities deem it secure. 

Remember, municipal emergency preparedness is a collective effort involving building management, employees, tenants, and emergency responders. By working together, you can ensure a swift and safe response during critical situations. 

Contact Us 

To learn more about unique municipality risks and how to address them, contact our OneGroup Municipality team. 

Matt Maguire, Regional President, North Country at [email protected]

Todd Goodman, Risk Management Consultant at [email protected]

Learn more about risk management services from OneGroup.


This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2024 Applied Systems, Inc. All rights reserved.

Insure Your Real Estate Agency Against Liability Claims

Realtor outside home for sale with real estate sign. Protect your agency with the right insurance coverage.

Liability lawsuits have the potential to financially destroy your real estate agency. Ensure you have the right insurance coverage to protect it.

Some real estate agencies choose to bundle coverage in a business owners policy (BOP), while others pick program insurance, which is a tailored, plan-specific policy. Either way, liability insurance is a key part of protecting your business.

Clients place trust in their real estate agents to find them a home that fits their needs. But what happens when these trusted agents fail to disclose necessary information about a property? What if parts of the house are damaged during a showing? What if client assets are misappropriated or lost during a transaction? All of these are common scenarios, and each scenario needs specific treatment in your insurance program. 

Professional liability insurance

Sometimes called errors and omissions insurance, this coverage protects you from claims that you failed to disclose important information about a property or made statements that ended up being untrue. Most policies cover your legal expenses and settlements or any penalties you must pay to the injured party. There are three primary exposures real estate agents should insure.

  • Errors and omissions: Did you fail to disclose to your clients that the basement of the property they recently bought floods every spring? Did you tell your clients that the kitchen of their newly purchased home was recently renovated when really it was over 10 years ago? Both cases would qualify as an error or omission if the information was omitted mistakenly. But if you intentionally make a false representation, that’s not covered.
  • Negligence: Negligence occurs when clients claim a real estate agent should have known something specific about a property, but didn’t, and failed to take appropriate action. As a real estate agent, you should have knowledge of the property being sold and the surrounding neighborhood. For example, if a client buys a property next to a lot owned by a developer who later starts construction on a new high-rise building that obstructs their view, you could be sued for negligence. You should have researched who owned the lot next door and disclosed that information to the buyer at the point of interest.
  • Misrepresentation: The only type of misrepresentation covered by insurance is when an agent makes a persuasive statement about a property that they believe to be true but actually isn’t. Let’s continue with the previous example of an empty lot owned by a developer. You’ve done your research and there are no signs pointing to the fact that it is owned by a developer. If you tell your client that the lot next to their property is empty and unowned because you genuinely think it is (and you were wrong), this is misrepresentation. You may be sued for their loss of property value, but your insurance would likely step in to help. However, deliberate false representation is considered fraud and isn’t typically insurable.

There are several other scenarios that can be covered by professional liability insurance, so it is important to talk to your insurance agent or broker about the span of the coverage being offered.

General liability insurance

General liability insurance protects your business from the more common forms of client lawsuits. What is typically covered by a general liability plan?

  • Client injury: General liability plans protect your real estate business if someone is injured in your office or while viewing a property you are showing them. This coverage is particularly important if you mostly work as a “buyer agent.” With clients viewing and walking through several unfamiliar properties, the risk of injury is high. Keep in mind that these plans cover client injuries only. (If you have several agents working under you, your workers’ compensation insurance would respond to employee injury claims.)
  • Property damage: If an agent or agency employee causes damage to a property, general liability would cover that cost. This includes houses you are contracted to sell as well as other houses you are showing to your buyers.
Cyber liability insurance

Real estate transactions are a juicy target for cyber criminals. Some use email to pose as banks or other money handlers and trick agents or customer service representatives into providing the personal data of buyers or sellers. Some hack directly into agency systems to steal customer data. In all cases of a cyber breach, there is a potential for your agency to be sued and have to pay damages for any client financial losses.

Crime insurance

Also called a fidelity bond, this protection steps in if someone in your agency steals. It can apply to money, securities and even the property of another entity (for example, something from a home being shown). Your agency can cover a few individuals or a wide swath of your employees. It all depends on who has access to valuables.

Business auto

Real estate agents and brokers drive for business all the time. If your employees drive their own vehicles and cause an accident in the course of work, your business could be named in a lawsuit for compensation. You would normally need nonowned commercial auto insurance, since your company doesn’t own the vehicle. If you do own the cars that your employees use for business, your insurance coverage should clearly name all drivers and vehicles. Make sure you have medical payments coverage in case others are injured in an accident.

What can affect your premiums?

There are several factors that can affect premiums: 

  • Location: Your premiums may be higher if your area of operation is considered high risk.
  • Previous liability claims: Just as your car insurance premiums increase with every citation or accident claim, so will your liability policies. If you or your agency have a history of liability claims, your premiums will be higher. 
  • Coverage limits: If your agency has several employees, you will need more insurance — that is, a higher limit (or maximum payout). Higher limits mean higher premiums. 

Your agency can do a lot to reduce risk of loss and prevent claims. Full and accurate disclosures on every transaction, careful driving, a safety-first program for showing properties, and rigorous and routinely updated cybersecurity hygiene can keep your liability claims low. Ask your insurance professional about risk management suggestions if you don’t already have a formal plan.

For more information

Your insurance professional will work with you to build a plan that fits your exposures and your budget. Reach out to our OneSelect team for a quote.


This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2020 Applied Systems, Inc. All rights reserved.

OneGroup is a 2024 Top 100 Insurance Agency

Top 100 2024

Insurance Journal’s 2024 Top 100 Property & Casualty Agency

top 100 agency badge 2024 200x200

OneGroup is proud to announce our continued rank on the Insurance Journal’s Top 100 Property and Casualty Insurance Agency list. At OneGroup, our ultimate goal is to help our clients find success in their business and personal ventures.

In August 2024, were named 66th out of America’s top 100 property and casualty insurance agencies by the Insurance Journal, one of the most read national property and casualty publication for independent insurance agents and brokers. OneGroup has risen almost 10 places from ranking 75th last year. “We are honored to continue moving up in the list of top insurance agencies across America,” OneGroup CEO, Pierre Morrisseau, stated. ” Our team’s devotion and commitment to our clients attests to this.”

OneGroup ranked 3rd place for bank-owned property and casualty insurance agencies. We have advanced four places since the previous ranking was released last August. This list is developed by the revenues produced by all of the insurance agencies in America whose business is primarily retail as opposed to wholesale. This ranking does not include our employee benefits, risk management, or HR consulting services.

We will continue to support our clients and work hard to ensure that all their goals are met. Thank you to all our clients for allowing us the opportunity to work with you. To read the list in its entirety, click here.

Top 100 Insurance Journal cover

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Find this Article Helpful?

Visit our Library of Resources for More!

ONEGROUP EXPERTS ARE READY TO HELP

Fill out the form below and an expert from OneGroup will contact you.

For Immediate assistance call 1-800-268-1830

Coverage cannot be bound or altered and a claim cannot be reported without confirmation from a representative of OneGroup.

NYS 2024 Workers’ Compensation Updates

Construction worker hammering while wearing a blue hard hat and orange construction vest. Workers compensation updates can affect premiums paid for employees. Photo by Burst

By: Brett Findlay, ARM, CRIS, Sr. VP, Business Risk Specialist

NYS Department of Financial Services Approves Workers’ Compensation Rate Decreases

There have been significant changes applicable to New York State workers’ compensation in 2024. For the ninth consecutive year, an aggregate rate decrease is on the horizon. Furthermore, the New York State Assessment was dropped again in January. Also, the impacts to individual workers’ compensation policies from the changes to the experience rating (EMR) formula have been experienced by all policyholders since our last update.

Loss Costs and Rate Changes

In a press release dated July 16, 2024, the New York Compensation Insurance Rating Board (NYCIRB) announced that its filed annual loss cost indication with the New York State Department of Financial Services is approved and will become effective on October 1, 2024. The approved and published filing includes a decrease of 9.0% to the overall loss cost, or rate level. The change in rates will be implemented on policies renewing on or after October 1, 2024.

The impact of the loss costs, or rates, will vary depending on each individual classification code. The 9.0% overall loss cost reduction is an average of all class codes. For an understanding of the potential impact to your business and individual class codes utilized on your policy, please feel free to reach out to OneGroup using the contact information below.

It is important to note that these rate changes will not go into effect on any individual policy until October 1, 2024. If your effective date is before that date, you will have to wait until your policy renewal before any potential rate changes apply. Regardless of when your effective date is, you should know the exact rate changes to your classifications sooner rather than later. It’s important to not only forecast the future costs of your program, but also to develop a plan for your upcoming renewal.

NYS Assessment Decreases

In January, the New York State Assessment saw another decrease. This year the assessment dropped from 9.8% to 9.2% in 2023, even more so from 10.2% in 2022, and 11.8% in 2021. Overall, there’s been a nearly 20% decrease in the aggregate cost to policyholders since 2021.

As far as the new formula to determine Experience Modification Ratings, or EMR’s, those changes went into effect on October 1, 2022. The formula is significantly different than it has been in the past and is affecting policyholders who’ve experienced workers’ compensation losses from both a frequency and severity standpoint. OneGroup has been monitoring the impact to policyholders, hosted multiple educational seminars, and developed materials to explain the changes in detail. The formula change has impacted many businesses, both positively and negatively.

Contact Us

So, what does this mean for New York State contractors? For any individual questions and/or concerns, please do not hesitate to contact Brett Findlay, Sr. Vice President of Business & Construction Risk.

OneGroup has a team of specialists, dedicated to risk management and construction industry specific insurance issues. We’re able to serve as a resource to your organization for all your construction specific questions and concerns. OneGroup takes great pride in being at the forefront of industry trends and assisting others where we can. You can find out more about us here or about our construction expertise.

For more information please contact Brett Findlay, Senior Vice President Business Risk Specialist at (315) 280-6376 or [email protected] 


This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Find this Article Helpful?

Visit our Library of Resources for More!

ONEGROUP EXPERTS ARE READY TO HELP

Fill out the form below and an expert from OneGroup will contact you.

For Immediate assistance call 1-800-268-1830

Coverage cannot be bound or altered and a claim cannot be reported without confirmation from a representative of OneGroup.

WEBINAR: RISK MANAGEMENT 101

101 Webinar Social Graphics blank

Join OneGroup’s next 101 Series Webinar! OneGroup Director of Risk Management, Megan Coville, will discuss how recent changes to calculations or workers’ compensation premiums can impact your business’ bottom line, and risk management strategies to contain costs, avoid staff injuries and return to work sooner rather than later.

WHEN: 9:30 – 10:30 AM, October 2, 2024

RM 101 Social Graphics 2024

The Importance of Wrap-Ups in Construction

Construction of new buildings

Wrap-ups are sometimes called controlled or consolidated insurance programs because they are centrally procured and managed. 

Not long ago, owners, general contractors, subcontractors, architects and engineers on large construction projects all had separate general liability insurance. On-site contractors also secured their own workers’ compensation insurance. According to the International Risk Management Institute, all these insurance coverages added about 6% to the total project cost. Often, project participants were confused about who had coverage or whose insurance would pay a claim.

Today, large commercial and residential projects are often insured through “wrap-ups,” which combine all the coverages needed for a project into a single insurance program. In exchange for the convenience and savings of a wrap-up, the enrolled parties agree to forego the usual markup for insurance in their bids.

Owner-controlled insurance programs (OCIPs) are placed and managed by the project owner, while contractor-controlled insurance programs (CCIPs) are controlled by the main general contractor on the project.

Originally, wrap-ups were used on projects of $100 million or more, but today you’ll find wrap-ups on projects starting around $10 million. In addition, residential projects as low as $5 million have used general liability-only wrap-ups.

Wrap-ups that extend over multiple projects, either at the same job site or multiple sites, are known as rolling wrap-ups. Smaller, general liability-only projects are known as mini-wraps. Ongoing wrap-ups for contract work at operating facilities are called maintenance wrap-ups or gate wrap-ups.

What do wrap-ups cover?

Typically, wrap-ups include commercial general liability (CGL) insurance with a broad-form endorsement for all parties and workers’ compensation for the parties who need it. CGL covers all liability risks for the project and protects against injury and property damage claims. Workers’ compensation covers workers who are hurt, are killed or get sick on the job.

With OCIPs, the controlling entity may add other coverages, including:

  • Builders risk, a type of inland marine coverage for projects under construction. Builders risk covers many perils, such as wind, hail, fires, vandalism and theft, plus equipment, tools and materials stored on-site or in transit.
  • Subcontractor default insurance. Like a surety bond, these policies protect the owner or general contractor from a subcontractor’s default.
  • Professional liability insurance. OCIPs may include liability coverage for architects, engineers and other professionals on the project, although most of these firms will already have their own professional liability coverage.
  • Excess liability coverage. Also known as umbrella coverage, this additional insurance increases the limits on CGL coverage and fills the gaps.
The benefits of wrap-ups

There are many advantages to wrap-ups for a large project. Let’s look at the major reasons you might want to be part of a wrap-up.

Greater control

As the names imply, OCIPs and CCIPs give the lead players a tremendous amount of control over the project’s insurance coverage. You also have peace of mind knowing that everyone on the project is covered. There are no doubts about whether one of the subcontractors has purchased workers’ comp. The controlling entity also can decide all different aspects of coverage, including limits and exclusions, and keep an eye on claims.

Easier administration

With all the parties enrolled in a single program, administration is much easier. Coverages are uniform and can remain in effect until the controlling party ends them. The length of coverage is an important consideration since liability may continue well beyond the project’s completion date. A wrap-up allows you to extend coverage for all parties at a single price without renewing every year.

In fact, because all parties are joined as insureds, there is a united defense when claims arise. There is no need for finger-pointing if there is an accident or delay. All parties have an incentive to resolve the claim quickly.

Lower costs, better safety

In addition to savings from combining separate policies into a single program, wrap-ups reduce costs through standardized coverage, tighter risk standards and lower claims rates.

Since there is just one insurance program, the controlling entity can ensure high standards of safety and security. Risk management, uniform safety procedures and consistency in enforcement can lead to fewer claims and lower premiums.

Greater opportunity for small contractors

For subcontractors who may not be able to obtain coverage on their own, wrap-ups open the door for employment. For example, individual subcontractor policies typically exclude multifamily construction projects.

The disadvantages of wrap-ups

There are also some disadvantages to consider. The controlling entity takes on the added responsibilities of selecting an insurance agent or broker to create the insurance program and enrolling the other parties in the plan. They must carefully select an insurance professional who is familiar with wrap-ups and can administer the plan. In addition, they’re responsible for the safety plan and monitoring claims.

If you are a contractor who is asked to enroll in a wrap-up, you may find the coverage isn’t as comprehensive as the coverage you already have. The wrap-up may have gaps or lower limits than your current policy. Remember, as a participant, you’ll be required to transfer your exposure to the wrap-up. You’ll need to work with your insurance professional to adjust your coverage so there isn’t a conflict or overlap with the wrap-up. You may need to buy excess coverage if you find the wrap-up insufficient.

Here are a few other drawbacks to keep in mind:

  • You’ll need to recalculate your insurance costs and subtract what the wrap-up covers from your bid. This can sometimes get complicated.
  • Your liability may extend beyond the project’s completion, leaving you open to future damages if the wrap-up’s coverage has ended.
  • If the controlling entity purchases workers’ compensation for you, you will not benefit from your good safety record. The owner of the insurance contract receives the dividends. 
  • A wrap-up insurance program won’t cover all your insurance needs. Wrap-ups don’t contain commercial auto insurance, surety bonds or coverage for third parties who are involved in the project but are working off-site.
Is a wrap-up for you?

Wrap-ups have become a popular alternative to contractors purchasing individual insurance coverage for a project. They control costs, ensure adequate coverage for all parties, and improve safety and loss standards. 

Understand what you will gain and what you may be giving up when you enroll in a wrap-up. Discuss your options with Brett Findlay to be sure you are sufficiently covered.


This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2024 Applied Systems, Inc. All rights reserved.

Find this Article Helpful?

Visit our Library of Resources for More!

ONEGROUP EXPERTS ARE READY TO HELP

Fill out the form below and an expert from OneGroup will contact you.

For Immediate assistance call 1-800-268-1830

Coverage cannot be bound or altered and a claim cannot be reported without confirmation from a representative of OneGroup.

Mitigating Turnover Costs & Improving Employee Morale

Group of diverse young male and female diverse colleagues discussing project details while working together on laptops in outdoors cafe

Over 40% of costly employee turnover may be easily preventable. Ensure your organization’s leaders are having proactive conversations with employees to mitigate turnover cost and improve employee morale.

Self-reported employee turnover risk is at its highest point since 2015 as half of U.S. employees are watching for or actively seeking a new job. Long-term organizational commitment, meanwhile, is at a nine-year low.

However, employers can take steps to significantly reduce turnover risk. According to a recent Gallup poll, 42% of employees who left their organization voluntarily said their manager or organization could have done something to prevent them from leaving their job.

According to respondents, discussion topics that could have prevented a surprise exit included:

  • Compensation and benefits (30%)
  • More positive interpersonal interactions with manager (21%)
  • Organizational issues (13%)
  • Career advancement (11%)

The data indicates that employers are leaving valuable intervention opportunities on the table.

Employers can – and should – engage in (well-planned) compensation/career trajectory discussions with employees. Career development plans, when carefully implemented, can provide a brighter future for employees to work toward. Strengthening the manager-employee relationship by promoting positive interactions and reducing micromanagement can also help prevent turnover.

Managers must be proactive in mitigating turnover risk and boosting team engagement before it’s too late.

Need more information?

To learn more about mitigating turnover risk and boosting team engagement, contact our Human Resources Consulting team.


This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

The FTC’s ban on noncompetes faces challenges

A Person Signing a Contract

The FTC’s ban on noncompetes is facing legal challenges – the outcome will significantly impact employers nationwide.

In April 2024, the Federal Trade Commission issued a final rule banning most noncompetes nationwide. The rule is set to become effective on September 4, 2024.

Numerous lawsuits challenging the rule have been filed. On July 3, 2024, a Texas court held that the FTC likely did not have authority to issue the regulation, instituting a preliminary injunction only for the plaintiffs of that specific case.

However, on July 23, a Pennsylvania court held the opposite: the FTC did have the authority to ban noncompetes. As September 4th approaches, the fate of the rule remains in question.

What to pay attention to from an HR perspective:

  • Non-disclosure and non-solicitation agreements remain enforceable and appropriate regardless of the noncompete ban’s status.
  • Employers are still allowed to require agreements that ban trade secret disclosure.
  • Check the laws in your jurisdiction.  States such as California, Oklahoma, and North Dakota have instituted their own noncompete bans. Other states restrict their use.

At this juncture, employers should:

  • Review existing employment agreements for explicit and de facto noncompete agreements.
  • Create a plan for revising agreements as needed and for providing required notice to covered employees.
  • Continue to monitor the numerous legal challenges facing this rule, but be prepared for it to go into effect on September 4, 2024.
Need more information?

To learn more about the noncompete clause rule, and how to prepare for upcoming changes, contact our Human Resources Consulting team.


This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

The Pros and Cons of Offering Mental Health Days

Closeup image of cute attractive millennial redhead woman with funny curls enjoying tea standing next to big panoramic window with city landscape, looking at camera with happy satisfied smile

Employee stress has reached record highs.

Nearly 60% of employees say they are burned out, reports the management software company Workforce.com. The World Health Organization estimates depression and anxiety cost employers $1 trillion a year globally.

It’s little wonder mental health is a top priority for employers across industries. In recent years, more organizations have been implementing mental health days. This benefit lets employees take time off to rest, restore and address mental health issues.

A mental health day can be paid or unpaid, rolled into vacation or sick time, or granted as a separate benefit. The goal is to empower employees to address their mental health. The desired result is for employees to feel more energized and engaged at work and at home.

Mental health days have their advocates and critics. Let’s examine the pros and cons, as well as strategies for implementation.

Pros

Granting mental health days acknowledges the work and life pressures facing your employees. This benefit can normalize mental health challenges and jump-start conversations about mental health in the workplace. It can also get leaders to examine your organization’s broader mental health resources and strategies.

Employees who use mental health days report improvements in stress and productivity, reports Forbes. The flexible nature of this benefit lets employees decide when and how to use their mental health days. They may decide to rest in bed, connect with friends or family, volunteer for a charitable cause, pursue a hobby, or read for personal or professional growth.

Addressing mental health proactively through time off can reduce long-term illnesses and absences, according to Business News Daily. It also formalizes a long-standing but hidden practice. Mental health days have been around as long as there have been sick days. Forbes reports 95% of employees who have used sick time to deal with mental stress told their employers it was due to a physical ailment such as a stomachache or headache.

Adding mental health days to your benefit offerings demonstrates you care about your employees’ well-being. It can increase job satisfaction, engagement and retention, according to the law firm Dentons. Enhanced employee wellness also boosts long-term productivity.

Cons

Mental health days can also come with challenges. Providing extra days off presents an immediate expense. Even if you offer unpaid mental health days, you’ll still have scheduling and productivity costs.

Furthermore, companies have seen some employees underutilize mental health days, while other employees overutilize them. This imbalance can create resentment and negatively impact workplace culture.

Office culture itself can negate the benefits of mental health days. Employees often avoid using them for fear of judgment or repercussions. Less than 30% of employees would talk to their manager about mental health challenges. And just 25% would speak to HR, reports Forbes. 

Employees don’t want to be viewed as less committed. And they don’t want to be passed over for bonuses, raises or promotions. If your culture doesn’t support the use of mental health days, offering them could harm your culture or exacerbate mental health challenges.

Mental health days may be an inadequate solution for more significant issues at work or at home. For example, if you have a toxic office environment or unmanageable workloads, or your employees need counseling, medication or mental health treatment, offering mental health days could backfire. Employees may get upset if they feel like mental health days don’t address the root cause of their stress or aren’t part of a broader strategy to improve workplace mental health.

Even when employees use them, mental health days may be too little, too late. Employees often take mental health days as a reactionary measure when they’re already suffering symptoms of more significant issues. Critics note a single day of rest won’t cure long-term challenges of stress, anxiety or burnout. 

And the effects of mental health days tend to be short-lived. According to Forbes, 66% of employees say the benefits of mental health days wear off after a few days.

Strategies to make the most of mental health days

Proper implementation, communication and support can mitigate many of these challenges. Use the following strategies to enhance your approach.

Define mental health days for your organization. The service provider Complete Payroll Solutions recommends communicating clear guidelines such as:

  • The purpose of mental health days
  • Eligibility rules
  • How many days are available each year
  • Whether mental health days are paid or unpaid
  • How to request a mental health day
  • Expectations such as not checking phones, computers, emails or other work-related matters

Include this information in your employee handbook and company communications. Talk about mental health days during the onboarding phase, and encourage proactive and preventive use. In communications about mental health days, connect employees to additional resources such as your employee assistance program and employee resource groups.

Highlighting strategies for employees to use on mental health days shows thought and encourages usage. For example, you might recommend employees:

  • Focus on thoughts, feelings and root causes of mental distress
  • Practice self-care such as sleeping, reading, hiking, doing yoga, meeting friends or getting a massage
  • Make an appointment with a counselor, psychologist or psychiatrist

Business News Daily recommends making mental health days part of a larger strategy to improve mental health. They should be a tool, not the entire solution. Examine issues such as the affordability of mental health benefits, accessibility to mental health professionals, flexibility and autonomy in the workplace, meaningful work and psychological safety.

Provide mental health education and training. Work with employees to proactively address health issues. Train supervisors to identify early signs of burnout. Encourage employees to take breaks, use time off to recharge, and manage work issues affecting their mental health.

Support from company leaders and supervisors is essential. They should set an example by letting employees know when they use mental health days and discussing personal benefits.

Get employee feedback. Survey employees before implementation to capture their thoughts on your time-off policy and their comfort with discussing mental health. Complete Payroll Solutions also suggests surveying employees a year into your implementation process. In addition to comparing employees’ views a year later, ask about the effectiveness of your mental health day policy and potential improvements.

Your mental health strategy

For more information on mental health days and how they fit into your larger benefits strategy, reach out to our Human Resources Consulting team. They can help you maximize this benefit, including implementation, communication, training and follow-up surveys.


This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2024 Applied Systems, Inc. All rights reserved.