Business to Business Newsletter
March - 2012
In This Issue
"Risky Business" - The Blog
When Good Employees Go Bad
Umbrella Coverage - What Limits Your Assets?
WC Experience Ratings
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WHEN GOOD EMPLOYEES GO BAD: WHY YOU NEED EMPLOYEE DISHONESTY INSURANCE 

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An employee in a high school's finance department steals $279,000 to support her gambling habit and cover her mortgage payments. A bank employee in Pennsylvania allegedly embezzles $750,000. The former CEO of a Colorado insurance brokerage pleads guilty to stealing $353,400 from the brokerage's employee benefits plan. The office manager of a Texas law firm gets four years in prison for forging checks and depositing client payments in her personal bank account.

 

When people become desperate, they may succumb to temptation and turn to crime. The FBI reported that one in 28.2 employees was caught stealing from an employer in 2007, and that was before the worst of the recent economic downturn. Vendors' employees and other visitors to an organization's premises may also have the opportunity to steal computer equipment or network passwords.

 

Most business property insurance policies cover losses resulting from some types of crime. For example, they will cover the cost of cleaning up graffiti that vandals spray paint on an exterior wall or the value of merchandise burglars steal, plus the cost of repairing the damage they did breaking into the store. However, insurance companies did not design these policies to cover...

 

 

 

 MORE...

Greetings! 

 

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Aaaaaaaah... the temps are rising and it's that wonderful time of year here in New England - "Mud Season" (as it's affectionately called by our NH staff) - that transition time between the harshness of winter and the heat of the summer.

There are many nice things about this time of year. The trees start budding and the tulips and irises begin peeking through the otherwise barren ground. We notice birds chirping after a long absence and Spring is definitely in the air - if not in our step.

It also brings the arrival of some not-so-nice things. With the plants coming to life after their long winter sleep, for many it means coughing, sneezing and runny noses as allergies kick into high gear. While it's nice to have the dirty remnants of snow disappear, before the lush green grass of summer we must endure the mud and muck left behind by snow melt and spring rains. I suppose it's all a matter of perspective.  Some tend to see one side of things, others the other.

We believe that holds true of much of life, and certainly of insurance. What you see when you look at your policy might be one thing (general liability limits, or a premium amount), but from our perspective, things can look considerably different. Our team is made up of insurance specialists who aren't comfortable with the status quo. They are trained to ask the right questions, examine policies and forms, and make sure that all sides of your risk management program are being reviewed. They know the exclusions that can limit your coverage and are proactive about making sure the needs of your business are taken care of. We probably see your policies differently than you do... and fresh perspective is a wonderful thing!

Speaking of fresh, have you checked out our new website? It's got a brand new look and some great additions. One of them is our Client Showcase - a place where we get to give our clients the spotlight. If you're interested in being featured there, please contact Heather Clement and she'll be glad to get you plugged in and listed on the site!

 

 

 


Gretchen Houghton

Mason & Mason Insurance 

 

 
P.S. Looking to connect? Check out our new blog! You can also find us on facebook and twitter...  let us know what you think!
Umbrella Liability Coverage: What Limit Saves My Assets?Meeting

 

Insurance funds losses. It transfers risk from your company to the insurance company for a fee - premium. Deductibles are used to reduce the number of claims by having the business pay small amounts and only reporting larger issues. The order in which claims are funded is: Deductible, liability limits, and then company assets -- and sometimes personal assets. Your company needs high liability limits to protect company assets.

 

Claims exceeding $1 million in liability are infrequent, but not rare. Umbrella insurance covers above all other liability insurance in one million dollar layers. High liability limits become affordable this way. Business nightmares, such as the $3 million cup of coffee, the truck catching fire under a railroad bridge, or your vehicle colliding with a school bus, unfortunately do occur. A million or two is not sufficient coverage for most operations.

 

Asbestos and tobacco companies produced legal products for years before lawsuits started as the result of long-term exposure, and these very successful companies were brought to the brink of extinction. These companies kept tens of millions in umbrella layers. How much is enough?

 

Commercial Liability insurance covers...

 

  

 

Workers Compensation Experience Rating
Meeting

 

 

 

Time and resources spent on developing a culture of safety repays the business in the long run. Safety cultures rely on reducing the number of workers compensation claims and, in return, the odds of a disastrous claim are reduced.

 

Business owners with Workers Compensation experience modifications above 1.25 need to review their safety policies with professionals. It is possible one year or even one claim causes this situation; but it should not be ignored. Discover and repair the root cause.

 

A 1.01 to 1.25 modification indicates worse than average experience. State rates can be less than adequate for a short period of time. The actuarial or mathematical calculations just incorrectly reflect the average expected claims. Slightly elevated modifications may be caused by these issues; however, review your losses by department in these cases and see if a problem area exists.

 

For slightly elevated modifications...

 

  

 

 

 

 

 

Thank you for taking the time to read this month's newsletter! Remember, your feedback helps shape future issues. We value your input, so please...let us know what you think! Have a great month!

 

Sincerely,

 


Gretchen Houghton

Mason and Mason Insurance

 

Mason & Mason Insurance                  
458 South Avenue                                     
Whitman, MA 02382                                   
T (800) 759-1452                                       
F (781) 447-2832