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!