Despite plenty of low-cost healthcare options, the majority of U.S. employers are expecting to change their full-time employee health benefit programs within the next three years, according to a Towers Watson study analyzing responses from 444 midsize to large U.S. organizations in January 2015.
You can’t put a price tag on a clean bill of health, but with the total annual cost of health care in the U.S. topping $3 trillion a year (about $8,650 per capita) employers and insurance companies are searching for ways to spend less on it.
A study from the University of Michigan Health Management Research Center does offer some encouraging news: As little as 10 to 20 minutes of daily exercise can help “dramatically” lower the risk of developing serious chronic conditions like heart disease and diabetes, even for those with a high risk.
The research project viewed how exercise affected 4,345 employees at a financial services company. About 30% of the employees suffered from what doctors call “metabolic syndrome” which is a cluster of risk factors (including high blood pressure and high cholesterol) that often leads to diabetes and heart disease.
The study also found when high-risk employees put in 150 minutes per week of exercise saw their health care costs drop to the same level as those of healthy employees’. “It was a real surprise,” says Alyssa Schultz, a researcher who worked on the study.
Employees with metabolic syndrome who put in just 30 minutes of exercise five times a week racked up an average of $2,770 in annual medical expenses, compared with $3,855 for at-risk employees who didn’t work out. Data showed that those who exercised also had their’ pharmacy costs cut in half!
The biggest eye-opener from the study however was seeing how helpful it can be to exercise even just a little, as researchers noticed health-care cost savings, even among people who reported just 10 minutes of vigorous movement per day.
Companies intent on cutting their health care bills might want to encourage employees to sit less and move more — and they needn’t do it through an elaborate wellness program. Standing alone burns more calories than sitting, and with enough creativity and encouragement there are several ways to get employees to be more active throughout the day.
“People tend to think that, if they can’t spare half an hour a day to spend on a treadmill at a gym, then they might as well not bother doing anything, but any number of minutes that is more than zero makes a noticeable difference.” – Ms. Schultz.
Moral of the story? That stand-up desk your employee has been bugging you about may actually save you money in the long run.
From the day you start a business, you expose yourself to certain risks. Even before the first employee is hired, a business is at risk, making it imperative to have the right insurance solutions in place.
One lawsuit or catastrophic event could be enough to wipe out a small business, no-matter how innovative, before it even has a chance to get off the ground.
Fortunately, businesses have access to a wide range of insurance types to protect them against these types of dangers.
Here are some insurance types that a business should have in place as soon as possible.
1. Professional Liability.
Professional liability insurance, also known as errors and omissions (E&O) insurance, covers a business against negligence claims due to harm that results from mistakes or failure to perform. There is no one-size-fits-all policy for professional liability insurance. Each industry has its own set of concerns that will be addressed in a customized policy written for a business.
2. Property.
Whether a business owns or leases its space, property insurance is a must. This insurance covers equipment, signage, inventory and furniture in the event of a fire, storm or theft. However, mass-destruction events like floods and earthquakes are generally not covered under standard property insurance policies. If your area is prone to these issues, check with your insurer to price a separate policy.
3. Workers’ Compensation.
Once the first employee has been hired, workers’ compensation insurance should be added to a business’s insurance policy. This will cover medical treatment, disability and death benefits in the event an employee is injured or dies as a result of his work with that business. Even if employees are performing seemingly low-risk work, slip-and-fall injuries or medical conditions such as carpal tunnel syndrome could result in a pricey claim.
4. Home-Based Businesses.
Many professionals begin their small businesses in their own homes. Unfortunately, homeowner’s policies don’t cover home-based businesses in the way commercial property insurance does. If you’re operating your business out of your home, ask your insurer for additional insurance to cover your equipment and inventory in the event of a problem.
5. Product Liability.
If your business manufactures products for sale on the general market, product liability insurance is a must. Even a business that takes every measure possible to make sure its products are safe can find itself named in a lawsuit due to damages caused by one of its products. Product liability insurance works to protect a business in such a case, with coverage available to be tailored specifically to a specific type of product.
6. Vehicle.
If company vehicles will be used, those vehicles should be fully insured to protect businesses against liability if an accident should occur. At the very least, businesses should insure against third-party injury, but comprehensive insurance will cover that vehicle in an accident, as well. If employees are using their own cars for business, their own personal insurance will cover them in the event of an accident. One major exception to this is if they are delivering goods or services for a fee. This includes delivery personnel.
7. Business Interruption.
If a disaster or catastrophic event does occur, a business’s operations will likely be interrupted. During this time, your business will suffer from lost income due to your staff’s inability to work in the office, manufacture products or make sales calls. This type of insurance is especially applicable to companies that require a physical location to do business, such as retail stores. Business interruption insurance compensates a business for its lost income during these events.
By having the right insurance in place, a business can avoid a major financial loss due to a lawsuit or catastrophic event. Check with a CorpStrat adviser to find out what forms of insurance are advised for your type of business and put those plans in place as soon as possible. For more information on the insurance solutions we offer please visit our site or call us at 818-377-7260!
“You see, in this world there’s two kinds of businesses, my friend: Those that offer PTO and those who don’t.”
The allocation of paid sick and vacation days for employees has long been a dilemma for employers and HR managers, especially when it comes to small businesses.
Many questions spring to mind when considering PTO such as, How many days do we give? Do they carry over from year to year? Should we replace sick and vacation time with a combined paid-time-off (PTO) bank? How much vacation time do we need to offer to attract new employees? And, how do we determine when employees abuse PTO?
The answers to these questions, of course, depends on a number of factors ranging from the size of your organization and the type of work being done, to the flexibility of a given department and the possibility of employees to work from home.
To begin breaking this down, let’s look at data provided by small business owners across the U.S., showing how they handle sick and vacation days.
Many small business owners stated that having just one person out for more than a day can place a large strain on the entire company because they simply don’t have the numbers to accommodate an individual being out for an extended period of time. That would explain why 46% offer only five days or less of paid sick time.
Some workplaces however have acknowledged the many downsides of limiting paid sick time to their employees. Between an increased cost of living, large student loan debts, and longer-than-usual recovery periods thank to our increased tolerance to antibiotics, employees have found themselves unable to afford taking “all the time they need” to fully recover when PTO is not offered, choosing instead to “tough it out,” which leads to more employees getting sick, missing work, and a decrease in overall productivity. To avoid this, one in 10 small business owners are now telling their employees, “Take as many paid sick days as needed.”
Increasingly popular, is the elimination of sick days in favor of a paid-time-off bank. No explanation necessary—if you can’t make it in, you can’t make it in; just mark it down as PTO. Some employers feel this limits confusion and avoids unnecessary excuses or made-up illnesses not to mention that employees enjoy the privacy this allows them to handle certain personal matters so they can come back to work focused and energized.
When it comes to vacation days, small business owners report the following:
The trend among smaller employers is clearly towards the lower end of the spectrum as an astounding 76% offer only 10 days or less of paid vacation time, sighting the difficulty in maintaining productivity in a small business environment when people are not working. This however may be the reason so many small businesses report high-turnover rates, difficulty attracting top talent, and other hiring challenges.
Small businesses can try and counter these challenges by offering employees more flexibility including options to work from home or the option to leave early for personal and family obligations. Productivity may also pose an issue though as employees do still need an opportunity to get away, recharge and unwind.
So, to PTO or not to PTO, that is the question. ‘Tis nobler to give employees paid time off to recover and recharge? Or, to continue down the course of strict sick and vacation day policies, while trying desperately to over-compensate with other benefits.
Keep in mind that employers who are able to provide more generous paid leave benefits have found that doing so yields better talent, productivity, and dividends in the long run.
“Though she be but little, she is fierce!” ― William Shakespeare, A Midsummer Night’s Dream
Small businesses think and act big, there’s no doubt about that, but when it comes to brokers they tend to retreat into a “smaller is better” mentality.
Just because your small business is running strong however, doesn’t mean small brokers or one-man-shows are your best option.
You see, this business is not a place in which small or novice brokers can survive or thrive (at least not anymore). In fact, many small brokers have simply been overwhelmed. Not just by their workload, but by the constant learning, development, and training they endure in order to remain current in the industry.
As a result, some of these small, novice, or one man brokers have resorted to cutting corners, delivering less than quality services, and have even been negligent to their clients needs. Meaning you get stuck with benefit plans that may or may not be right for your business. Even worse, you could be slapped with hefty fines and penalties should certain compliance regulations not be met.
So lets be honest, do you really feel your small business and it’s big goals should rely on small brokers to provide the best possible services, advice, and solutions?
Are you and your business willing to pay the penalties if your overloaded or inexperienced broker cuts corners? And, do you truly feel you and your business will receive the attention you deserve as these smaller brokers struggle to manage a growing number of tasks and regulation requirements on their own, all while juggling other clients too?
While smaller can sometimes mean better, in this industry, it’s simply not the case. Instead, you should seek out strong, experienced brokers with the appropriate amount of trained, licensed, and knowledgeable team members on-board who can handle all the intricate tasks that help keep your business compliant and running smoothly.
Larger, more experienced brokers such as ourselves can help small businesses by creating worksheets, payroll deductions, providing enrollment assistance, offering COBRA and Cafeteria 125 plans, and knowledgeable on-call support staff who can help you anytime.
An employer who fails to comply can be subject to penalties, lawsuits and exposures when not properly supported by a skilled and knowledgeable employee benefits broker
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