Your Recreational Boat Needs Coverage in and out of the Water

| May 18, 2023
Safe boat

Depending on the size of your watercraft, you may find coverage under a homeowners insurance policy, but most recreational boats need more.

Most homeowners policies provide some coverage for watercraft, and even this depends on size, storage, and usage. And they don’t include liability coverage, which provides financial protection should your boat cause damage to other people or their property.

If you have a canoe, kayak or other similar small boat, your insurance broker can confirm if your homeowners policy is sufficient for your risk and type of use. However, recreational boats — those under 27 feet, the delineating point between a pleasure boat and a yacht — will probably require additional coverage, particularly if it travels at speeds greater than 40 km/hr. Note that both yachts and personal watercraft (commonly known by brand names such as Jet Ski, Sea-Doo or WaveRunner) require different insurance than recreational boats.

Smart coverage

The typical boat insurance policy provides liability protection for bodily injury and required medical expenses, property damage to others, and any injuries or losses caused by people you give permission to drive your boat. It also insures against damage or loss due to collisions, fires, lightning, vandalism and theft. This includes the boat — the hull, machinery, fittings and furnishings — as well as any permanently attached standard equipment.

What’s not included is:

  • Normal wear and tear
  • Defective machinery or failure due to lack of maintenance
  • Damage from wildlife, including sharks, insects and zebra mussels
  • Damage from mould
  • Damage from ice or freezing

Depending on your particular situation, you may also want to add coverage for trailers, expensive accessories, towing, uninsured boaters or carry-on equipment such as fishing gear.

Policy particulars

Every policy has important details you need to understand. Ask your insurance broker about these specific limits or coverage features:

  • Navigational limits: Are you limited to specific territory or waterways? What should you do if you want to take your boat outside these areas? Boats used on freshwater, inland lakes are typically less expensive to insure than those used on the ocean.
  • Marine inspections: Is there a certain model year for which a marine survey is required? Even if your boat is not an older model, you might still want a survey to confirm value.
  • Underage operators: What are the age and license requirements for the waterways you will be using? Does coverage extend to children under that age?
  • Equipment: As mentioned, most policies include fittings, furnishings and permanently attached equipment. However, you should verify this list against your expectations. Check on the coverage related to anchors, oars, trolling motors, tools, seat cushions, life jackets and expensive items onboard.

In addition, you must select which type of policy you want with regard to claim expectations. There are two types of boat insurance policies: actual cash value policies and agreed amount policies. To better understand these two options, here are the general definitions:

  • Actual cash value (ACV): Claims are paid based on replacement cost, minus depreciation. If your boat is a total loss, your payment will be determined based on used boat pricing guides or other resources. Partial losses are paid based on the cost of repair, minus a percentage for depreciation.
  • Agreed amount (also called “stated value”): Claims are paid based on a valuation both you and your insurance company agree to at the time the policy starts. Total losses are paid out at this value. Partial losses are settled without any deduction for depreciation.

To determine the right policy for you, compare the cost of premiums and the levels of risk you feel comfortable assuming. If you prefer the protection afforded by an agreed amount policy but find the premiums a bit stiff for your budget, you can reduce the premium further by adjusting the deductible you are willing to pay.

Savings discovered

There are other ways to reduce your premiums, too. Ask your insurance broker about potential discounts for having:

  • A diesel fuel engine, which is considered less hazardous than a gasoline-powered engine
  • Coast Guard-approved fire extinguishers
  • Ship-to-shore radios
  • Completed safety courses
  • Multiple policies with the same insurer, including home, auto or umbrella
  • Two or more years without a claim
  • A good driving record

Be sure to review this discount list every time your policy renews.

Don’t get caught high and dry

It may be tempting to suspend your boat policy when your watercraft is in storage or out of the water. However, your boat can still suffer damage year-round due to fires, vandalism, theft or even winter storms.

While you don’t want to end coverage, you can consider what’s called a “lay-up” policy during the off season or periods of inactivity, which reduces your coverage without eliminating it entirely. This type of coverage maintains protection for risks that still exist during storage or time out of the water, but it temporarily suspends coverage for on-water risks, such as collisions, wreck removal or uninsured boaters.

If you have a lay-up policy, you must adhere to the proposed calendar guidelines. If you take your boat out even a day before the lay-up policy stipulates, you will not be covered for any losses.

Contact Us

Learn more about protecting your personal items. Connect with one of our team members today.

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 © 2021 Applied Systems, Inc. All rights reserved.

Are You Covered if Personal Items Are Stolen From Your Vehicle?

| May 15, 2023
Thief

A vehicle break-in can happen when you least expect it, even in your own neighborhood.

Approaching your car and seeing shattered glass from a broken window is unsettling and scary. You’re left dealing with vehicle damage and the emotional toll of having your personal belongings rifled through and stolen.
Auto insurance doesn’t cover personal property

Regardless of your vehicle type or where you park, there’s always the chance of a break-in. But you may be surprised to learn items stolen out of your vehicle are not covered under your auto insurance, such as:

  • Laptops
  • Phones
  • Wallets and purses
  • Sports equipment
  • Laundry or clothing
  • Jewelry
  • Watches
  • Firearms

Auto insurance won’t cover items stolen from a motor vehicle unless their operation relies solely on power generated by the vehicle, like a built-in stereo system.

Aftermarket auto parts and accessories need additional protection

Aftermarket parts, such as rims or a stereo system installed after purchase, need to be covered under a custom parts and equipment (CPE) endorsement to your auto policy.

CPE coverage is available through most auto insurers for an added cost. It covers custom paint jobs and grilles, navigation systems, car stereo upgrades and anything else the original manufacturer did not install.

Home or renters insurance covers your personal property

When thieves pillage the personal belongings in your vehicle, turn to your home or renters insurance policy for help. Most policies “cover personal property owned or used by an insured while it is anywhere in the world” as off-premises coverage. Off-premises is your property located at residences other than your primary residence. Home and renters insurance limits apply at 10% of your personal property limits. If your home or renters policy covers your personal belongings at $75,000, you’ll have $7500 in personal belongings coverage for items off-premises.

Remember that “special limits of liability” and a limit of $500 per any one item could apply to items like:

  • Jewelry
  • Collections
  • Art
  • Firearms
  • Electronics

You’d need extra insurance to cover these items beyond the policy’s capped values. Talk to your insurance agent about the terms of your specific policy.

How to deter car break-ins

Here are a few safety tips to deter thieves:

  • Don’t keep valuables in your car.
  • Don’t leave objects in your car overnight. If you must, conceal them.
  • Park in well-lit areas whenever possible.
  • Keep your car locked with the windows rolled up.
  • Never leave your car unattended if it’s running.
  • Cover or detach your GPS or upgraded stereo system.
  • Install a car alarm on your vehicle.
  • Park your car in a secure garage rather than a driveway or street.

A car break-in can rattle you emotionally. Plus, you have the financial costs of repairing your vehicle and replacing your stolen valuables. 

Don’t risk making a bad situation worse by not having the appropriate coverage for all your things. Contact your insurance agent to make sure you’re protected.

Contact Us

Learn more about protecting your personal items. Connect with one of our team members today.

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 © 2023 Applied Systems, Inc. All rights reserved.

OneSelect Business Spotlight

| May 9, 2023
pexels uriel castellanos 933843

High Peaks Cyber

With CEO and Co-Founder, Joe Sharkey

“For every expedition, High Peaks Cyber has the right team of experts to summit your obstacles or get around them to find that hidden mountain lake.”

Located in Utica, New York, High Peaks Cyber is a small business focused on using technology to make us all safer.

The company works with governmental and commercial sectors to help customers understand emerging threats in the cyber world, developing custom technology and software to help enforce national security. Co-founders Joe Sharkey and JP Blake named the company after the 46 High Peaks of the Adirondack Mountains, and the company’s identity is centered around the merging of technology with a rugged outdoorsy nature. Like the high peaks, cyber is “a rugged frontier,” and the company’s mission is to deliver innovative technology that helps customers reach their peak.

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The naming of the company based on the High Peaks helps the company tell their story and emphasizes their pride to be in Central New York. With many clients located in more populated areas such as Washington D.C., it’s important to the High Peaks Cyber team that they advocate for the Utica community and all it has to offer. You can find the co-founders and the rest of their team often hiking, camping, canoeing, skiing, or snowshoeing in their free time.

High Peaks Cyber solves large technical problems for their customers daily and competes at a national level, despite its size. They help to solve customers’ hardest and newest problems in cyber.

Joe expresses, “It takes a special kind of person to want to do this work.” In an industry that is constantly evolving, the team at High Peaks Cyber is always learning. Whether working with different program languages or new technologies, no two days are the same. This keeps things interesting and exciting for the team of lifelong agile learners.

The company’s focused and collaborative team of seven often decompress and celebrate breakthroughs with milkshakes, team lunches, and the occasional Nerf battle.

The High Peaks Cyber team uses the analogy of summiting a high peak to understand the need to work hard, rely on your team, come in prepared, and enjoy the excitement when you achieve your goals.

High Peaks Cyber has been a client of OneGroup for two years, and during that time the business’s insurance needs have changed through its continued growth. Joe appreciates that working with OneGroup offers High Peaks Cyber with, “real people that care about our business, that care about supporting us as our needs grow.”

OneGroup is proud to support small businesses through our OneSelect program. Click here to learn more about the program and to connect with one of our experts.

To learn more about High Peaks Cyber and the work that they do, click here.

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Your Homeowners Policy Might Not Cover Rebuilding Costs

| May 4, 2023
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Building Ordinance or Law Coverage Can Help

A windstorm blows though your tree-lined neighborhood and one of the large oak trees crashes through the center of your house. Fortunately, wind is a covered peril and your insurance responds to the damage.

But when your contractor applies for the construction permits, there’s a new wrinkle: Your home isn’t up to current electrical code standards. Since you’re technically rehabbing a portion of your home, the electrical wiring must satisfy the current building ordinance.

Insurance won’t pay the full cost because of a common homeowners policy limitation called a building ordinance or law coverage clause. In other words, the cost to bring your house up to current building codes is not covered by your insurance, even though a covered peril (the windstorm) is the reason you’re doing the rehab in the first place. 

What does this mean for you? A big out-of-pocket cost you weren’t expecting.

Even with a tree in your living room, you may not be covered for the full cost of rehabbing your home if your homeowners policy contains a building ordinance or law exclusion or limitation. But you can plan ahead and get additional coverage now.

Types of building ordinance or law coverage

The main purpose of any homeowners insurance is to return your property to the same condition it was in before the loss. A building ordinance or law endorsement extends your homeowners coverage to parts of your home that are undamaged by a covered peril (such as a tree) but must be repaired or upgraded to satisfy a community building code.

Here are some building ordinance or law coverage endorsements to consider:

  • Loss to undamaged portion
  • Demolition cost
  • Increased cost of construction
Loss to undamaged portion coverage

A tree in your living room is unquestionably a problem and the clear cause of your major catastrophe. Regardless, you’ll have to work with the insurance company to figure out how much damage was done to your home even when the cause of the damage is obvious.

For example, let’s say the insurance company has determined that 70% of the structure of your house is damaged because of the impact from the oak tree. Insurance will pay to repair the parts damaged due to the impact. But when you’re applying for construction permits, the city informs you that you must demolish your home and rebuild it. City ordinance requires that structures damaged beyond 50% must be completely rebuilt, not just repaired. The limit on your standard homeowners policy is $300,000. Is that enough?

You might be covered for some of the cost to rebuild, but it depends on the wording of the policy coverage and the overall limits of your policy. The standard limit on building ordinance or law coverage is usually 10% (typically, defined under dwelling coverage A). The contractor quotes you $60,000 to rebuild the undamaged parts of your house. Your 10% limit pays on $30,000. You’re looking at covering a $30,000 coverage gap out of your own pocket.

Increasing your building ordinance or law coverage limit to 20% (instead of the standard 10%) could help close the gap. You need to think in terms of a worst-case scenario weighed against current market costs for labor and materials.

Demolition cost coverage

Before you think the gap is closed, remember that the house isn’t going to tear itself down or clean up afterward. You might have some coverage for rebuilding the damaged portion, but not for demolishing the undamaged parts and removing the debris. Will insurance cover your costs? It depends.

The demolition cost endorsement will pay to demolish the undamaged portion and remove the debris (if building ordinance or law requires it). But without any extra coverage endorsements, you’ll be forced to share the 10% standard homeowners coverage across both rebuilding and demolition. Even if you increase coverage from 10% to 20% (using the example above), you might still be stuck with some out-of-pocket cleanup costs beyond the $60,000 to rebuild.

Again, consider the worst-case scenario in terms of cleanup costs such as machinery, labor and disposal fees. If you secure a building ordinance or law endorsement to insure 25% of your overall homeowners limits, you’ll have $75,000 total for the project. That leaves you with an excess of $15,000 for demo costs.

Increased cost of construction coverage

Even if your home isn’t forced into a complete demo and rebuild, you might end up having to rebuild your home to code anyway.

Consider the same example, but only 35% of your house has structural damage. You apply for building permits, but the city inspector requires you to upgrade the electrical and plumbing in your home. That estimate comes in at $40,000. Under many standard building ordinance or law provisions, you’d be able to call on the 10% standard coverage for your $300,000 policy ($30,000) leaving you with $10,000 to finance on your own.

The standard homeowners policy for building ordinance or law leaves room for some coverage (normally 10% of the limits), but it doesn’t always fully compensate you. A higher limit written to 20% could help protect you from out-of-pocket costs associated with rebuilding both the damaged and undamaged parts of your house to code.

A standard policy might leave you exposed

Find out what your local building ordinance or laws require. Codes may differ based on the type of zoning your property is classified under (business, residential or a combination). Subdivisions within a city might have their own special codes in addition to the overall city or municipality code, so make sure to find out. Ask if there are any time limits on rebuilds, too. Depending on the age and value of your home, you might be looking at a serious cash investment to top off an already stressful situation.

Your insurance professional can help

Contact your insurance professional about building ordinance or law coverage on your existing homeowners policy. You might have some coverage, but is it enough to handle today’s market prices for materials and labor? Don’t wait for a terrible gust of wind and a felled tree to find out how much the shortfall is. A building ordinance or law endorsement could be one more layer of protection to help make sure your budget isn’t on the demo end of a wrecking ball.

Contact Us

Learn more about building ordinance or law coverage on your homeowners policy. Connect with one of our team members today.

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 © 2019 Applied Systems, Inc. All rights reserved.

Help Your Employees Build and Maintain Healthy Habits

| May 4, 2023
Healthy eating, exercising, weight and blood pressure control

Support your employee’s healthy habits

A New Year’s resolution, health scare or simple desire for a fresh start can put many of your employees in the mindset to begin healthy new habits. The trick is making them stick.

According to Inc. Magazine, more than half of New Year’s resolutions are dropped by the end of January.

But that doesn’t mean hope is lost. At any time of year, healthy behaviors are more likely to become lasting habits when people:

  • Have easy access to helpful choices
  • Start small and maintain a variety of options
  • Feel supported in their journey

As an employer, you’re in a strong position to help your employees develop healthier habits through benefit offerings and work environments that support:

  • Physical health
  • Mental health
  • A commitment to wellness
Physical health

Offer affordable health benefits

Perhaps the biggest step you can take to help your employees improve their physical health is providing easy and affordable access to health benefits, including:

  • Health assessments and personalized reports
  • Preventive care and screenings to stave off high blood pressure, diabetes, heart disease and other serious conditions
  • Chronic disease management
  • Smoking cessation programs

Encourage physical activity

Encourage movement by reminding employees to regularly take breaks. This can be as simple as standing up, stretching or walking around for a few minutes. Other ideas for promoting healthy habits in and out of the office include:

  • Friendly competitions like step challenges, outdoor scavenger hunts, or community runs or walks
  • On-site yoga and fitness classes
  • Gym reimbursements
  • Walking meetings

Promote healthy eating habits

You can also help employees stick to healthier eating by offering:

  • Nutritious options in snack baskets and vending machines
  • On-site meal options
  • Home deliveries of ready-made food
  • Education on nutrition through webcasts or guest speakers
  • A compilation of favorite healthy recipes shared by employees
Mental health

It’s equally important to reinforce good mental health habits. Support your employees through benefit offerings such as:

  • An employee assistance program (EAP) — EAPs typically offer a variety of mental health supports, oftentimes including phone sessions with nurses or mental health professionals. It’s also a best practice to offer EAP services to employees’ dependents to increase reach and usage.
  • An expanded list of in-network mental health providers — Cost is a major barrier for mental health treatment. Adding in-network psychologists and psychiatrists can increase access to and utilization of therapy and other vital resources.
  • Telehealth options — This benefit allows employees to access mental health providers anytime, anywhere from their mobile device or home computer.
  • Cognitive behavioral therapy (CBT) — CBT is a proven way to help people change behaviors and reduce stress and anxiety. It can be done online or in person, with options for self-paced learning courses and additional training.
  • Mental health education — Workshops, webcasts, online courses and other educational opportunities can improve understanding and management of conditions like depression, insomnia and panic disorders.
  • Mental health apps — By providing free or subsidized access to apps, you can help employees build skills in meditation, sleep quality, relaxation, resilience and more.
Commitment to wellness

In addition to benefit offerings, it’s important for company leaders to demonstrate their own commitment to physical and mental health, including:

  • Talking the talk with open and honest communication about challenges they face and positive habits they are adopting
  • Walking the walk by prioritizing work-life balance and participating in workplace wellness initiatives

Company leaders should also consider:

  • Employee surveys — Your organization can target the biggest needs by gathering feedback. For example, if employees indicate a high level of stress, you can promote your EAP, CBT or in-network counseling.
  • Leadership training — Teaching supervisors to spot signs of declining mental health in employees can lead to greater awareness and earlier treatment of health issues.
  • Savings accounts — Implementing or increasing contributions to health reimbursement arrangements or health savings accounts can help employees with out-of-pocket costs. Reducing the cost barrier makes it more likely they will seek the help they need.
  • Frequent communication — Sending regular reminders about available resources can help normalize usage of benefits, increase preventive care and encourage employees to seek help when they need it.
  • Downtime — Taking a break from work can improve mood, concentration and overall brain functioning, according to the Cleveland Clinic. To encourage time away, ask supervisors and executives to set an example by using their paid time off and not sending emails after work hours.
The many benefits of healthy habits

Poor health comes at a high price. The World Health Organization estimates that anxiety and depression carry productivity costs of $1 trillion a year globally. And in the U.S. alone, chronic health conditions cost employers an estimated $530 billion a year, according to Johns Hopkins Medicine.

The ability to maintain good health habits can make a material difference in your employees’ personal and professional well-being. Your organization also stands to gain from lower health care costs and higher productivity.

Talk with your insurance broker or benefits adviser about physical and mental health benefits. They can help you maximize current offerings and explore new options to support your employees in building healthier lifestyles.

Contact Us

Learn more about how you can support your employees. Connect with one of our team members today.

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 © 2021 Applied Systems, Inc. All rights reserved.

Who Needs Malpractice Insurance?

| April 27, 2023
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Malpractice insurance is a specialty coverage that protects professionals.

Have you considered what types of insurance you need beyond a business owners policy? In most cases, the coverage you need depends on the type of work you do. For those in the medical or legal profession, you’ll likely want to be covered by malpractice insurance.

Malpractice insurance falls under the larger umbrella of specialty coverage called professional liability insurance. Business owners buy professional liability insurance because their general liability insurance specifically excludes claims for malpractice, negligence or misrepresentation.

Malpractice insurance today is a necessity for professionals and is required by law in many states for attorneys and healthcare providers.

Medical and Beyond

Medical professionals — a group that includes doctors and surgeons, home healthcare workers, long-term care workers and facilities, hospitals and chiropractors — face many unique exposures and challenges today, malpractice among them. In reviewing recent surveys, below are four common areas where medical malpractice lawsuits are filed:

  1. Misdiagnosis or Failure to Diagnose
  2. Medication or Prescription Errors
  3. Surgical Errors 
  4. Failure to Treat

Another area of increased exposure is Privacy and Cyber Breach.  These exposures are typically excluded in malpractice policies, therefore,  a practice needs to obtain a separate cyber security policy to address this growing need. 

While most people associate the word “malpractice” with the medical professions, malpractice suits can be filed against many types of professionals. Attorneys and other legal professionals can face malpractice claims if they are accused of not completing their duties at the expected expertise.

Other white-collar professionals can face malpractice claims as well. Financial professionals who are accused of not executing trades or transactions as directed, charging excessive fees or even making improper financial recommendations can face malpractice suits. Stockbrokers who make misleading statements or conduct insider trading are committing malpractice. For accounting professionals, breach of contract or negligence, as well as misrepresentation to conceal wrongdoing, all fall under malpractice.

Architects, engineers and other skilled design professionals are subject to malpractice suits. Faulty design and engineering work associated with a construction project compromises the stability of a building and can jeopardize the well-being of workers, owners or inhabitants during and after the construction is finished.

We live in a very litigious world, which is not expected to change in the short term. This only reinforces the importance of having this coverage for your professional exposures. 

A growing market

With so many opportunities for error and the growing  frequency and  severity of claims, it’s no wonder the malpractice insurance market is skyrocketing. Based on many insurance market studies, premiums for malpractice insurance are projected to continue to increase over the next 10 years, due to claims frequency and severity trends. 

Because malpractice lawsuits can be extremely costly to defend, many professionals also purchase an Excess or Umbrella policy, which provides higher limits above the primary policy limits.  

It’s important to review your level of malpractice exposure and protect yourself and your business from potential claims. Your insurance professional will not only help you determine if you are required to carry malpractice insurance, but also how much coverage you  may need  and if it is mandated by your state.

In today’s litigious climate, it is now more important than ever to consult with your insurance professional about these exposures. Understanding your risks and evaluating the options to protect against them will help you find the best solution for your unique needs. 

Contact Us

Learn more about how you can make your benefit plan a tool for success. Connect with one of our team members today.

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 © 2019 Applied Systems, Inc. All rights reserved.

Keeping Your Employees Happy

| April 24, 2023
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Give employees what they want with voluntary benefits.

Voluntary benefits round out a company’s employee benefit offerings, raising them from a plan that just checks the box to a comprehensive plan employees can personalize. With the wide diversity of employees in the workplace today, voluntary benefits are more popular than ever before.

Interest in relatively new voluntary benefits, such as loan assistance and financial wellness, continues to grow. However, interest in supplemental coverage staples, like supplemental life insurance and accidental death and dismemberment (AD&D) coverage, is skyrocketing, too.

What are voluntary benefits?

Sometimes called worksite benefits, voluntary benefits encompass a wide range of offerings, including the following:

  • Health and wellness
  • Vision
  • Dental
  • Critical illness
  • Hospital indemnity coverage
  • Lifestyle
  • Travel insurance
  • Pet insurance
  • Identity theft
  • Legal assistance
  • Financial security
  • Long-term disability
  • Life insurance
  • AD&D

According to the Conference Board of Canada, more than 90% of Canadian employers provide full-time employees with vision care coverage (92%); private or semi-private hospital accommodation (96%); out-of-country medical coverage (99%); paramedical services like massage therapy, chiropractic coverage and physiotherapy (99%); major restorative dental services (98%); AD&D (91%); and long-term disability (99%).

Generally, employers contribute a portion of the cost of this coverage or pass the full cost on to employees. However, when funded entirely by the employer (or more than 50%), these plans can be privy to better underwriting and rate guarantees. This applies particularly to vision, dental, life and disability benefits.

Depending on the plans you decide to offer, you may have to meet certain participation requirements. For example, if you are sharing the cost of a long-term disability plan with employees, only 10 employees may need to enroll. But if you are passing the full cost of coverage to employees, 15 employees may be required.

Employees pay premiums for voluntary coverage through payroll deduction. Employees may also have the opportunity to convert their coverage to an individual policy if they switch jobs.

How do you know what voluntary benefits to offer employees?

In general, voluntary benefits should:

  • Help employees financially: For example, critical illness insurance can help cover medical bills, transportation to and from treatment, meals for the family while at the hospital, etc.
  • Be easy to understand and relatively simple to administer: For example, vision and dental insurance should cover treatment according to a schedule of benefits.
  • Be easy to access: Employees should not have trouble finding a provider in their area. For example, if you offer legal services, make sure there is more than one lawyer to choose from.

Selecting voluntary benefits that complement your core benefits is a good place to start. Let’s look at a few examples.

  • If you already provide employees with a basic life insurance benefit, you may want to add supplemental life insurance. This allows employees to increase that coverage based on their personal needs. It may also enable them to cover their dependents at a discounted rate.
  • If you offer vision and basic dental benefits, consider extending vision or dental coverage. This allows employees to elect coverage for all their health care needs.
  • If you offer life insurance and short-term disability, you may want to add long-term disability insurance. This allows employees to protect themselves financially in the case of an unexpected illness or injury.

Keep in mind your goal is to support employees. You want them to participate. Offering too many products at once may overwhelm employees and decrease enrollment.

Contact Us

Learn more about how you can make your benefit plan a tool for success. Connect with one of our team members today.

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 © 2021 Applied Systems, Inc. All rights reserved.

Contractual Risk Transfer 101: Are You Protecting Your Business?

| April 14, 2023
Interior Office At Onegroup Center
Are You Protecting Your Business?

This month, OneGroup hosted a 101 series webinar on contractual risk transfer. Experts Kirsten Shepard and John Schmitt spoke about protecting your business from the negligence of others.  

Contractual risk transfer is a legally binding way to transfer risk from one party to another. One party transfers a risk of loss to the other party involved through a written contract, created prior to the loss.  

Facing Risks 

What is risk? It’s the potential for injury or financial loss, a loss can be caused by fires, water damage, vehicle accidents, slips, trips, or falls, work-related injuries, and lawsuits. 

Controlling risk. You face risks everyday, so you should know what risks you can afford to take, and what you should avoid. Managing these risks by transferring the risk to another party will help avoid litigation against you, or your insurance cancelling or non-renewing your policy.

Contractual risk transfer in action. A store owner hired a landscaper to do landscaping around the parking lot, and a customer tripped on netting left by the landscaper to protect the grass. The customer broke his wrist, and then sued the store owner for medical costs. The store owner was able to tender the lawsuit to the landscaper, and the landscaper’s insurance ended up paying. This was due to the contract that the store owner had with the landscaper to indemnify them for losses arising out of their work.

Why should you transfer risk? Transferring risks protects yourself and your business. Contractual risk transfer can help you avoid paying for the negligence of others, create trust between both parties, and off-set insurance costs. Dividing the risk before something bad happens will make both parties more comfortable. Having the contract drawn up will uphold responsibility in the event of an accident. To make the claims process easier in the event of an injury or loss, have a copy of the other parties’ insurance certificate.

A few examples of contractual relationships:

  • Property Lease (Landlord & Tenant)
  • Construction Contract (Owner & Contractor)/(Contractor & Sub-Contractor)
  • Vendor Agreement (Company & Vendor)
  • Service Agreement (Company & Service Provider)  

Indemnification

What is indemnification? It’s when one party agrees to compensate another party in the event of a loss. Indemnification should be clearly decided upon and agreed to before the loss occurs.

An indemnity agreement is only as good as the financial condition of the parties. An insurance policy is a method to finance the obligation to indemnify and defend the contract that was agreed upon. Requiring third parties to carry the right insurance coverage and enforcing compliance is one of the most effective ways an organization can protect themselves. When deciding what insurance to require, you should look at who the contract will be with, the type of contract, and who could potentially be harmed.

Basic insurance requirements:

  • Commercial general liability insurance covers bodily injuries and property damage to third parties.
  • Workers’ compensation and employers liability insurance provides coverage for an employer’s legal liability for bodily injury to employees arising out of and in the course of their employment.
  • Umbrella insurance provides an additional layer of coverage over underlying insurance policies.

Certificate of insurance. A certificate of insurance is not a contract, it is evidence of coverage at the time the certificate is issued. Though, it does not guarantee that coverage is currently in force or that coverage is as broad as what one party requested.

Insurance will pay for claims that are covered by the terms of the policy, this means that anything outside of your current policy will not cover a claim with that loss. Many policies have limitations and exclusions. You should always check your coverages, and update your policies to prevent a loss. Insurance policies have a limit of liability. The limit of liability is the most an insurance policy will pay for a loss. If a claim is not covered or your vendor does not have enough insurance, the hold harmless and indemnity agreement gives your agency the right to be reimbursed by your vendor. Having both an indemnification agreement and additional insured coverages is best practice.

If you have questions regarding the webinar or contractual risk transfer, please email Kirsten Shepard (KShepard@OneGroup.com) or John Schmitt (JSchmitt@OneGroup.com) or click here to fill out a form to connected with one of our experts.

OneGroup is looking forward to the next 101 Series Webinar, Personal Insurance 101, on June 7, 2023 from 9:30AM – 10:30AM EST. Personal Insurance expert Dave Weaver, will discuss how to protect the important things in life. Register for the next webinar here. 

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.

St. Baldrick’s Foundation

| April 13, 2023
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Shave to Cure Childhood Cancer

Over the past year, Chuck Baracco, Vice President at OneGroup Retirement Advisors, has grown out his hair for children in need. He grew his hair out from March of 2022 until March of 2023 before making his most recent cut.

Chuck has spent the last three consecutive years participating in the St. Baldrick’s Foundation #ConquerKidsCancer Head-Shaving fundraiser. He has participated in eight shave events in total, beginning back in 2008. 

The St. Baldrick’s Foundation works to change the realities of childhood cancer by funding the most promising childhood cancer research. The foundation began in 2004, and since its inception has awarded over $326 million to support research, making it the largest charitable funder of childhood cancer research grants. As a “shavee,” Chuck spreads awareness for the St. Baldrick’s Foundation and raises funds that help the effort to find a cure for childhood cancer. Over his eight total shaves, he has helped to raise over $15,000 for the foundation. 

Chuck’s last haircut that did not benefit St. Baldrick’s was back in 2019. In 2023, his resolution is to get at least one haircut, even if he participated in the head-shaving fundraiser.

Our Syracuse office enjoys watching Chuck grow out his hair each year. His daughters do too, as it means they get to help him come up with some creative ideas for his shaves! Check out some inspiring before and after photos below! 

If you’d like to learn more or donate towards the foundation’s efforts, view Chuck’s participant page here. 

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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.

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Increasing Engagement in Your Benefit Plans

| April 10, 2023
Want To Increase Engagement in Your Plans Make Benefits a Tool for Success

Make benefits a tool for success.

You want employees to understand their benefits and make them a valued part of their daily lives. To do that, you need to position your benefits as a tool to help employees reach their goals. Make information easy to access and simple to understand.

Meet employees where they are

If you communicate with employees online, brand your benefits messaging in the same way you do corporate information. Spend just as much time on the layout as you do the copy. Anticipate employee questions, use graphics, parcel out information, repeat your message in different ways and offer links for even more detail.

If you need employees to take action, make it easy. For example, if open enrollment is coming, tease benefit changes a few months prior, so they know to be on the lookout for more details. Then provide more detailed information a week before open enrollment begins. 

Personalization

Employees are used to seeing ads targeted directly to them. Their social media feeds are filled with products they browsed for or purchased online. They expect the same when it comes to information from their employer.

You can help employees make smarter decisions when you tailor communications to specific needs and life events. Give them the right information, at the right time, in the right place. Be proactive and boost engagement with messaging from their point of view. Enable employees to focus on what matters to them and skip what doesn’t.

Interactive decision support tools can help. For example, employees answer questions (did you get married, have a baby, buy a house?) and are directed to the changes they may need to make as a result (add a spouse, add a dependent, increase life insurance). They receive reliable guidance specific to their situation and financial concerns.

Multiple access channels

We are dealing with a multigenerational workforce.

  • Baby boomers may prefer to set an appointment with a member of HR to go over questions andconcerns in person.
  • Generation X may appreciate the opportunity to meet with someone, but will also want access toinformation when and where they want it – either online or through mobile apps.
  • Millennials and Generation Z will generally look online for answers. They frequently access information from their mobile devices and often prefer the use of apps to complete transactions.

Brand ambassadors

Messages from the CEO or senior vice president of HR have their time and place. And, while you will want executive level buy-in on any communications campaign, you may want to rely on peers and managers to help you on a day-to-day basis.

Employees are more comfortable going to colleagues to discuss personal issues. It can be helpful to create a team of brand ambassadors who understand your programs and how they work. They can point employees to appropriate resources, share positive experiences and build confidence in the benefits you offer.

Contact Us

Learn more about how you can make your benefit plan a tool for success. Connect with one of our team members today.

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.