Tips for Providing Affordable Group Health Insurance Options to Employees

Each year, hundreds of business owners and human resource administrators around the nation struggle to find affordable group health insurance options for employees. Adding to this challenge are the upcoming changes to Houston health insurance benefits and premiums due to reform legislation. In order to overcome these issues, benefits administrators are looking for creative ways to provide affordable insurance to employees, while maintaining adequate coverage.

How to Provide Group Health Insurance That’s Cost Effective

The challenge that businesses face is finding insurance that is both affordable and provides the features and benefits that employees will use. Without buy-in from employees, the company cannot get discounted group rates, which causes premiums to skyrocket. Here are some tips for putting together low-cost insurance benefit plans that employees will participate in.

High Deductible Healthcare (HDHP) and Health Savings Arrangements (HSA)

One of the better ways to help reduce plan premiums, while still giving employees a valuable healthcare plan, is by offering at least one HDHP plan combined with an HSA program. Employees pay lower-than-average monthly premiums to maintain insurance coverage, while putting pre-tax dollars into a special account meant just for medical-related expenses.

Health Purchasing Cooperatives

In some metropolitan areas, small businesses and nonprofit organizations are coming together to create healthcare purchase cooperatives. These cooperatives give businesses more buying power, offering a larger number of low-cost group-discounted healthcare insurance plans with added perks like dental and vision insurance. These arrangements are also eligible for special small-business health- tax credits.

Flexible Spending Accounts (FSA)

Another option that can be combined with any group insurance plan is the FSA, which gives employees the option to put away pre-tax dollars for certain approved medical expenses. To give employees more for their money, the FSA can be accepted by healthcare vendor networks that accept cash-up-front payments at a reduced corporate rate for employees.

Corporate Wellness Programs and Nurse Hotlines

For a relatively low cost, any business can design a corporate wellness campaign that raises awareness about important health topics, and provide 24/7 access to telephone nurses. Studies have shown that when employees are supported by their employers in reducing health risk factors, such as obesity, stress, and chemical dependency, healthcare insurance claims are significantly reduced, which then lowers health insurance premiums.

Preventative vs. Reactive Care

While many group healthcare plans offer coverage for both preventative and urgent medical care, a few actually offer plan discounts for companies that promote preventive care. Creating a culture of corporate wellness and encouraging employees to get their annual physicals, age-appropriate tests, and ongoing prevention, can help to reduce group healthcare premiums.

To learn more about getting affordable healthcare insurance for your business, give ABM Insurance a call at 1-800-362-2809.

10 Types of Insurance Coverage Every Small Business Should Have

As a small business owner you are vulnerable to losses if you lack proper insurance coverage. Consequently, there are 10 types of insurance coverage every small business should have.

1. General Liability
Every business, even home-based operations, requires general liability coverage.  If your product or service causes damage to a third party, general liability covers your defense costs and damages if awarded for bodily injury or property damage.

2. Property Insurance
If your business has personal property like inventory, tools, or computers then property insurance covers for theft, fire, and other losses. You should also consider adding to this policy, loss of earnings/business interruption coverage in case you are unable to operate during a loss.

3. Commercial Vehicle Insurance
A Houston commercial insurance policy will cover tools, inventory, etc., which are being transported as well as covering for damages and collisions. Note: personal auto insurance will not cover items being transported for business purposes.

4. Worker’s Compensation
If you have employees, worker’s compensation insurance is the law.  More importantly, proper coverage protects you and your personal assets if an employee is injured on the job.  This insurance covers medical costs and wage loss for the employee, and waives the employee’s right to sue your business if a loss occurs when they accept these benefits.   

5. Errors and Omissions
Also known as professional liability insurance, this type of policy covers your defense and any awarded damages in the event that you fail to render your services, or inadequately perform them.  General liability does not cover this type of loss, so if your business provides a service it is very important to consider this policy.

6. Data Breach Insurance
In today’s technologically advanced world, data breaches can and do occur.  If you store personal or non-public information about your clients or employees on your computer systems or paper filing systems and the information gets into the wrong hands, this coverage will protect your business from the losses that may follow.

7. Life Insurance
As a business owner with financial obligations, life insurance provides you with peace of mind knowing your family will be protected against financial burden in the event of your passing.

8. Home Owner’s/Renter’s Policy
This coverage protects against losses for physical property damage, contents and personal injury within the premises.

9. Directors and Officers Insurance
If a lawsuit is filed against a director or officer of your business, due directly to their actions related to your business, this coverage will protect against defense costs and damages.

10. Personal Umbrella Insurance
Additional coverage may be purchased in the event your liability insurances are exceeded during a loss.  Depending on the nature of your business, this can prove invaluable in a loss situation. Call ABM Insurance at 800-362-2809 to discuss your insurance requirements and get a free quote on a policy bundle that will protect you and your business.

What Types of Liability Insurance Are Necessary?

Business owners face numerous risks anytime they open their doors. It's possible that business liability insurance may be one of the most important investments a company can make. Yet, many small business owners are uninsured. Liability insurance protects a business from mistakes, accidents and other risks that could otherwise financially bankrupt the organization. The following are the most commonly sought after types of liability insurance.

General Liability Insurance

A basic plan that nearly all businesses should have is Houston general liability insurance. It adds a layer of protection to cover any type of hassle related to accidents, negligence claims, or injuries. This policy provides the business with protection from an assortment of risks including the following:

• The cost of defending against a lawsuit
• Property damage costs
• Costs related to bodily injury claims
• Costs related to someone's medical expenses being paid
• Libel defense charges
• Costs associated with defending against slander
• Cost of settlement bonds
• Cost of judgments

The risks for this type of insurance are very clearly present. If a customer falls on the property, this policy protects the company. If an employee makes claims that are not accurate and someone sues the business, this policy may help.

Product Liability Insurance

Most companies sell a product. That product, when made, distributed and used properly gives some type of benefit. Yet, mistakes can happen. Product liability insurance provides the company with protections necessary for any organization that manufactures, distributes, sells, or wholesales any type of product. It is a type of liability policy protecting the company from having to pay for losses. This generally has to do with defects that cause a person harm.

Product liability insurance is necessary for most organizations selling something. However, the type, amount, and the need for it range significantly between one company and another. For example, a company selling auto parts will have a higher need for this type of liability insurance than one selling baby clothing.

Professional Liability Insurance

If you do not sell a product, you may provide a service. This also puts you at risk. In this case, though, the defect is not in the product, but in the service. Business owners selling a service need professional liability insurance. It is sometimes called errors and omissions insurance as well. It can protect against risks such as:

• Errors you make when making a statement or selling the service
• Malpractice, commonly associated with doctors and medical professionals, but can also be associated with lawyers and numerous other professions
• Negligence claims

Some types of businesses must have professional liability insurance in order to have an active license. For example, most states require doctors to maintain a malpractice policy.

Business liability insurance may seem complex, but it does not have to be. By having it, though, you reduce the risk of financial loss or even having to shut your doors when someone files a claim against the business. If you give ABM Insurance a call today at 800-362-2809, we would be happy to help you to determine what types of liability risks you have and how adequately to defend against those risks.

What Is a No-Claims Bonus?

In insurance, a no-claims bonus is a benefit extended to those who have not made any claims in the previous year. It is mainly used in the Houston auto insurance industry to mean a reduction in the amount of premiums paid in the following year. Since you are rewarded for each year you do not make a claim, you can enjoy substantial savings on your yearly insurance premiums.

Transfer and Duration of Coverage

Most insurers will allow you to transfer your no-claims bonus from one policy to another. They just need to make sure that the last policy you had expired within a specific number of years, which for most firms are two or three years. This is not an industry-wide regulation, however, because some firms may not recognize your bonus if you have had a break in your coverage. On the other hand, your no-claims bonus will not expire as long as your coverage is intact and you do not make any claims. The percentage of the bonus you lose when you do make a claim depends on your insurance provider.

Protected No-claims Bonus

Most insurance companies have a program called protected no-claims bonus. This program allows you to hold a given number of claims without losing your no-claims bonus. You should note, however, that this protection does not preclude you from paying relatively higher premiums. If you are assessed as a more likely to have more claims, your premiums may rise accordingly. In this case, you only stand to benefit marginally from your no-claims bonus status. Thus, the protected no-claims bonus stands to save you some money even if you do make a claim.

 

Increasing Your Chances for the Bonus

To enjoy your no-claims bonus, you need to do everything in your power to avoid situations that may entail you making a claim. Some of the measures you need to make include:

 

Concentrate while driving

This may sound like a relatively simple advice but the reality is that many drivers get distracted whilst on the road. In fact, you can easily be distracted even while using some of the car technology meant to help you such as satellite navigation.

 

Maintain Your Car

Ensure that your car is well maintained and serviced regularly. The tires should have adequate threads and should be inflated properly, and the windscreen washers should be functional.

 

Eligible Drivers

Most insurers will only allow a car's owner to benefit from the no-claims bonus, but there are exceptions. A few insurance companies will allow a few other named drivers to enjoy no-claims discounts on your car. This is a great advantage for these drivers, especially when they move to their own policies. You should also note that a no-claims bonus is limited to a single vehicle, and if you buy an additional one, you should not expect the bonus to cover them both.


Call ABM Insurance at 800-362-2809 to get your auto insurance quote today!

General Insurance: 7 Basic Tenets

Insurance contracts are an exchange of risk. In return for the premium payment, the insurance company promises to compensate the insured for a loss to person or property. By pooling small payments from many customers, the insurer can extend large amounts of coverage. To make sure both parties are treated fairly and can trust the transaction, the industry has seven basic tenets of general insurance.

1.  Principle of Uberrimae fidei (Utmost Good Faith):  Both sides, the insured and the insurer, must act with good faith. Each party must give honest information and make thorough disclosures.

2. Principle of Insurable Interest:  The person seeking to benefit from the insurance must have sufficient ownership in the object, property, or interest being insured. For example, you can't take out insurance on your neighbor's house unless you own it.

3. Principle of Indemnity:  The insurer agrees, within the limits of the scope of coverage, to cover the loss. In short, the insurance company promises to "make good the loss" and restore the insured to where they were before the claim.

4. Principle of Contribution:  The insured can only recover for actual losses, even if the loss is less than the limit of coverage. If there are multiple policies, the insured can't double or triple dip. You can't make a claim for the same loss to two different insurers.

5. Principle of Subrogation:  When the insured is paid for a loss resulting from the fault of another, the insurance company has the right to seek legal recourse from that person. In short, if your car is totaled by a drunk driver and the insurance company pays your $10,000, then the insurer has the right to sue the negligent driver to recover the costs of the claim.

6. Principle of Loss Minimization:  The insured has a duty to reduce the chance of loss and to mitigate the loss. If your house catches on fire, you have a duty to call the fire department. After a loss, you have a duty, if possible, to secure the property and prevent further damage.

7. Principle of Causa Proxima (Nearest Cause):  If there is loss because of more than one reason, the insurer must look at the damage caused by the closest factor when paying the claim. For example, your street is flooded during a storm. Your house suffers only minor water damage, but catches fire because of downed power lines. You are insured for fire, but not for flood. The insured must pay the claim because you are insured for the closest or proximate cause of the damage.

The seven general tenets of insurance, at its base, is a code of ethics for both parties to the insurance contract. Any questions? Call ABM Insurance & Benefit Services, Inc. at 800-362-2809 today to review and discuss Houston business insurance or other types of insurance.

Tips for Business Owners to Handle Workers Compensation Claims

There is a huge misconception about workers compensation claims amongst business owners. It is a commonly held myth that a workers compensation policy is no more than a finance mechanism for payment of claims. Because of this, many business owners feel they would benefit more from not having a structured system of compensation claims in place. 

The truth is it doesn’t work that way, and workers compensation system involve several complex mechanisms that can help avoid potential to harm any business in more than one way. 

If a business is rated on the basis of its experience, it is important to remember that  every dollar paid on a claim will have its effect on the cost of compensation insurance. Not all employers or business owners possess the funds or expertise to do what’s necessary when employees suffer from injuries. Such poor claims management will only result in increased cost of  Houston workers compensation insurance that an employer would have to pay.

If one wishes to understand the link between insurance claims and increased cost of insurance, it is necessary to understand the mechanism of experience modification factor.

What is an experience modification factor?

To put it in simple terms, an experience modification factor is a system that compares a business’ experience of handling workers compensation claims, which is comprised of claim dollars and payroll, to those of other businesses. These businesses would not be unrelated, randomly chosen ones but would be similar businesses. Businesses with better claims have low factors of experience modification and hence their sum total of workers compensation cost is reduced. Conversely, those with poor claims experience and high factors have an increases total workers compensation cost.

How to have a better claim experience and lower the factor as an employer? 

-     Reporting all claims to the insurance company on time is important

-     Open claims should be paid extra attention. 

-     Closing the claims as quickly as possible is another important task. 

-     Working in close association with the insurance company adjuster to solve any issue could be of great help. 

-     An employer should do  everything in his power to get the injured employee back in good shape and back to work. 

Occurrence of workers compensation claim is unavoidable. It is important that a system is in perfect shape to assist the injured employer in terms of medical assistance, rehabilitation etc. The best way to do this is by being involved in the claims process and shouldering responsibilities. 

For more details on workers compensation claims and insurance, call us at 800-362-2809.

Business Function Insurance

Business events, like parties and dinners can impact the success of your company significantly. These events can be used to reward or motivate you employees, which can improve workmanship and production. That can lead to an increase in sales and profit. If you use the event to increase awareness of your company, it can attract potential clients. 

Business functions are important, but they’re also expensive to plan and host. Regardless of how much planning has gone into the event, there’s no promise that it’ll happen smoothly. There is something called special events coverage that provides protection in case a function is canceled due to weather or there’s a problem with the location. It’s also helpful in preventing loss in case a sponsor falls through or a vendor doesn’t show up or doesn’t carry out their responsibilities as agreed upon.

 Additionally, special events insurance can protect your business from legal responsibilities should an accident occur and someone is hurt or property is damaged. Even if alcohol is the reason behind the accident.

Regardless of whether the venue your function is being hosted at requires it or not, it’s wise to have special events insurance. Keep in mind special events insurance has lots of different options for coverage, as well as varies in regards to deductibles and limits, which makes premiums more affordable and flexible. Nonprofit organizations can use this insurance too, when holding fundraising events. 

Give us a call at 800-362-2809 to find out more about business function coverage and to learn about how other kinds of Houston commercial insurance can protect your business. Our agents will help you figure out the best type of insurance for your business.