Part 3 of a 3 part series… Benefits to Employers Tax treatment – Premiums for life insurance offered by the employer are generally deductible as ordinary and necessary business expenses (unless the employer is the beneficiary of the policy). In addition, the cost of employer-provided group-term life insurance is excludable from the employees’ gross income (up to $50,000 of coverage). The plan must meet special nondiscrimination rules, however, or key employees may not be eligible to exclude the cost of their coverage from their gross income. Benefits for Employees Though life insurance is an important asset for future financial security, many employees don’t realize its importance. Teaching employees about the value of life insurance may increase loyalty to the company …
2 – Offering Life Insurance Benefits: Term and Permanent
Part 2 of a 3 part series… Types of life insurance Life insurance is one of the most common employer-provided benefits, and is divided into two categories: term and permanent. Term life insurance has a specified coverage period (term), but can usually be renewed or converted into a permanent policy at the end of a term. Premiums are generally affordable initially, but can increase substantially when renewed. Permanent life insurance is life-long coverage that generally also includes a cash value savings component. There are many types of permanent life insurance, including whole, universal and variable. This type of coverage has higher premiums, but offers more long-term value. Employer-sponsored coverage Employer-sponsored coverage can be offered in a variety of ways. Employers …
1 – Offering Life Insurance Benefits: The Basics
Part 1 of a 3-part series… Though life insurance is an important asset for future financial security, many employees don’t realize its importance. Teaching employees about the value of life insurance may increase loyalty to the company as they better appreciate this benefit. Factors to consider When deciding to offer life insurance as an employee benefit, there are a number of factors to consider: What type of coverage will you offer? Will you offer term insurance, permanent or both? Who will be covered (employees only, retirees, spouses, dependents)? Note: Only employees can be covered under a group-term policy. When is coverage effective? Will there be a waiting period? What amount of insurance will be available? How will that amount be …
Building property insurance: Replacement cost vs. market value
The difference between a building’s “market value” and its “replacement cost”, as well as the building owner’s and manager’s perception of these terms, can cause confusion when deciding on insurance coverage for buildings.
Executive Liability Insurance for ESOP Companies and Their Executives
The ESOP (Employee Stock Ownership Plan) Association’s endorsed Executive Liability Insurance Program allows its members to purchase insurance protection in the areas of (i) Directors and Officers Liability, (ii) Fiduciary Liability, (iii) Employment Practices Liability and (iv) Crime. Additional coverages are now available such as Cyber Liability Insurance on a group basis thereby providing members with more competitive policy premiums and coverage terms than if they were purchasing this protection by themselves in the traditional marketplace. The program is underwritten for Association members on an exclusive basis by Great American Insurance Company and is endorsed by the Association. Shared Vs. Separate Policy Limits Typically, the D&O, Fiduciary and EPL coverages can be purchased under one policy. The criteria of corporate …
Coverage for Data Breaches – What You Should Know
A data breach is a loss involving theft, accidental release or accidental publication of Personally Identifiable Information (PII) or Protected Health Information (PHI). It includes social security numbers, bank account, credit or debit numbers, driver’s license numbers, PIN numbers, medical diagnosis, patient history and medications and other private information defined by state or federal law. Data breaches can occur in various ways: Unauthorized access, such as by former employees, vendors or hackers. Stolen or lost paper files, or shipped documents failing to arrive at their proper destination. Mailing, faxing or emailing documents with one person’s PII to the wrong person. Computer system hacked by virus, Trojan horse or improper security. Stolen or lost laptop, computer disks, USB flash drives, portable hard …
Workers’ Compensation Affected by Recent Pennsylvania Supreme Court Decision
A recent Pennsylvania Supreme Court decision, Protz v. WCAB (Derry Area School District), stated the American Medical Association (AMA) guide for evaluating permanent impairment to an injured worker is unconstitutional. Since 1996 Impairment Rating Evaluations (IREs) were used in the management of Workers’ Compensation claims to cap the indemnity exposure on certain claims in which an injured worker was paid Total Temporary Disability (TTD) Benefits for 104 weeks. An IRE could be performed, and if the results were below 50% whole person impairment per the most recent edition of the AMA Impairment Guidelines, then the Injured Worker’s disability status would change from total to partial and the Injured Worker, at most, would only be entitled to 500 remaining weeks of …
DIY Tractor Repair Runs Afoul of Copyright Law
This NPR article reports on the impact digital locks and copyrights have on agriculture. The iconic image of the American farmer is the man or woman who works the land, milks cows and is self-reliant enough to fix the tractor. But like a lot of mechanical items, tractors are increasingly run by computer software. Now, farmers are hitting up against an obscure provision of copyright law that makes it illegal to repair machinery run by software. Tell me more >>> If you have questions, email Courtney Meyer, AFIS, Account Executive, Agribusiness, Program Solutions.
Is Everyone on Your Team Using the Same Cybersecurity Playbook?
According to an article on the website, “Leader’s Edge”…Everyone is concerned about cybersecurity, but are key players on the same page about how to protect your company and its customers? Evidently not. A survey by BAE Systems shows that C-suite-level managers and their top IT people often have different ideas about what the cost of a cyber attack on their company would be and who would largely be to blame, top executives or the IT team, Computerworld reports. Read the full article >>> For more information, email Amy Mitchell, CIC, CISR, Vice President, Commercial Solutions.
Executive Liability Insurance: What to Expect in 2017 and Beyond
ESOP companies should be aware of several important changes that are taking place in the markets for Directors & Officers (D&O) Insurance and Fiduciary Liability Insurance. Here is a quick summary of important trends: Premium increases have leveled off. For the past several years, renewal premiums on existing policies had been on the rise. However, for the past several quarters premiums have not been rising, and we expect them to remain level for the remainder of 2017 for accounts that are claim free and in good financial standing. Minimum premiums for D&O and Fiduciary type policies generally start at $5,500 for a $1,000,000 limit of liability. Broader protection is available on most policies. Insurers have been expanding their coverage, and …