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 The Stylus is Mightier than the Pen
I challenge you to find any working person who says "our company needs more paperwork," "our file cabinets are too empty," or "we don't go through printer ink quickly enough." It's the business equivalent of "that sunset is too beautiful," or "this cake is too chocolatey." Luckily, since Congress passed the Electronic Signatures in Global and National Commerce Act, or ESIGN, in June of 2000, legislating that electronic signatures and records are just as valid as their printed counterparts, most types of businesses have had the capability to cut way back on their paper consumption. If you haven't jumped on the bandwagon yet, now might be the time.
Electronic signing as we know it--which is to say, using a finger or stylus to write one's signature on a tablet or screen--has been growing in popularity since the late 1990s. But beyond its obvious application of rendering manual credit card imprinters obsolete, the e-signature has the potential to save time, trees, and money for almost every stripe of business. It also cuts down on errors, speeds up turnaround time on contracts, and helps you lock in vendor pricing.
Who is it for?
While the early adopters of e-signatures were, unsurprisingly, those folks who had to contend with the highest mountains of paperwork-banks, insurers, basically any kind of financial institution-e-signing has become convenient and affordable enough for pretty much anyone to use. Contractors in need of service contracts, construction companies in need of material supply bonds, anyone who conducts business online, landlords with leases and restaurants with food vendors...all of them can benefit from the quick turnaround and paperless experience that an electronic signature program provides.
When one U.S. bank implemented e-signatures across 3000 branch offices, they found themselves with an extra 95,000 man-hours, which they expect to enable the sales of an additional 6000 loans annually. Eliminating manual paper-processing altogether has cut the bank's loan-document-handling costs by 80%. And for those of us who have to deal with banks for business but don't work at one, cutting two or three days off of the time it takes to get a loan can be a huge boon, too.
Where do I get my hands on one?
The two juggernauts in the electronic signature business right now are Adobe's EchoSign, which even has an Android app for signing on your cell phone, and Telstra's DocuSign, which is used at over 90% of Fortune 500 companies to sign over three-quarters of a million documents worldwide each day. Each offers a free trial, as well as low-cost packages for smaller businesses (DocuSign starts at $10/month for five signatures, EchoSign at $14.95).
Are you using electronic signatures in your business? Let us know how it's working out for you.
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Work Comp Woes: Opioid Painkillers Can Hurt Injured Employees
Opioid painkillers are all over the news these days, and rightly so. Since opioids started being prescribed for chronic pain in the late 1990s, over a hundred thousand people have died from opioid abuse.
When an employee is injured, they may be prescribed opioids like OxyContin and Percocet. But here's the problem: taking opioids creates a huge risk of abuse and addiction, which prolongs recovery (as employees are more interested in keeping the drugs coming than getting better and getting back to work), endangers lives, drains resources, and drives up the costs of workers' compensation.
This fall, the American Academy of Neurology came out against opioid use for chronic pain. The risk of addiction and overdose are simply too great, the academy says, and there's no evidence that opioids are even effective at managing pain over long periods. Meanwhile, long term use and abuse is rampant: the academy found 50% of patients who used opioids for at least three months five years ago are still using them now.
There are no hard and fast numbers on how quickly someone can become addicted to opioids--mitigating factors such as genetic predisposition to addiction, having grown up in a home where drugs or alcohol were abused, and having a co-occurring mental illness such as schizophrenia or clinical depression all have a major impact on whether a person becomes dependent, and how rapidly. The DEA and FDA have classified oxycodone as a Schedule II narcotic, meaning that while the drug has proven therapeutic uses, it also has both a high potential for abuse, and if abused can easily lead to severe psychological or physical dependence.
Opioid abuse also creates massive costs for employers and insurers. Out of the roughly $1.5 billion spent annually on narcotics for workers' compensation claimants, most goes to opioids. One injured worker's opioid prescriptions can cost up to $12,000 per month - not to mention associated costs for side effects.
And then there's the amount of time long-term opioid use keeps an employee out of work: almost five times longer than workers treated with only a single, no-refills opioid prescription, or entirely without opioids, according to the California Workers' Compensation Institute.
But there are solutions. The Academy of Neurology supports Washington State's "yellow flag" dosage recommendation, where a provider has to get consultation if a patient reaches a certain dosage limit without seeing "substantial improvement." The Centers for Disease Control and Prevention also support that "yellow flag," and many other states are creating similar policies.
Texas, one of the states with the most opioid abuse, is becoming a success story. Over a five-year period, as a result of tighter restrictions on prescribing opioids, claims went from $40 million to $35 million, and the cost of medical claims for the pills themselves has dropped from $6 million to about $3 million.
Companies are also addressing these problems internally. Some use physicians who are conservative in their approach to opioids. Educate injured workers about the dangers of opioids, and (if allowed by your employment contracts) use periodic drug testing to monitor the amount and duration of opioid use. Offer additional program support for helping employees wean off of opioids--the US Department of Labor has a return-to-work toolkit full of resources for employers with injured employees. And, above all, recognize that opioids aren't the solution we once thought they were: be cautious, and look out for your employees. You'll be saving money on workers' compensation, but you'll also be protecting your employees from the pain that these painkillers can cause.
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Congress Extends the Terrorism Risk Insurance Act (Phew!)
After fighting it out til the last minute, Congress has extended the Terrorism Risk Insurance Act (TRIA) for another six years. TRIA was passed in the wake of the September 11, 2001 attacks, and this is the third time it's been extended - but with some tweaks.
TRIA is like insurance for insurers: the act says the federal government will step in to help an insurer pay for damages caused by a terrorist attack. Since a terrorist attack is impossible to predict and can result in losses in the hundreds of millions of dollars, only the biggest insurers would be able to cover terrorism risk without TRIA - and only the biggest companies would be able to buy it.
This newest version of the act still keeps terrorism risk coverage vastly more accessible to smaller insurers, but there are two key changes. The copay for insurers has gone up, from 15 to 20 percent. And the trigger (the amount of damage a terrorist attack would need to cause before the federal government would step in) has doubled to $200 million. To put that into perspective, $100 million was already too high to activate TRIA after the Boston Marathon bombing. These tweaks mean policies might become more expensive, to make up for the higher potential payout from insurers.
Terrorism insurance rates are set by carriers as a percentage of your annual premium, but we can review your property limits annually to make sure you're not overpaying. And it's a good idea to gather exposure data so carriers can set rates appropriately.
Exposure data include:
- How many employees work in the office, versus telecommuting or working out in the field.
- If your employees work in shifts, how many work during peak shifts (since the number of employees working at the time of a terrorist attack would be much less than the total number of employees).
- How many employees are married and/or have dependents.
- Nature of your business' emergency management plans and procedures.
- Construction of your building(s) and locations of your offices.
- The security of the building(s), including whether there are guards and/or surveillance cameras, and how access to the building(s) is controlled.
You can also take steps to mitigate your terrorism risk: security and structural integrity are good bets for limiting the damage from (or even thwarting) an attack. Continuity planning is also essential - because just like a natural disaster, a terrorist attack could cause additional damage in business interruption. The ability to keep the lights on and doors open can also reduce the psychological cost of an attack, keeping up morale and a sense of resiliency after that worst-case scenario.
With detailed exposure information, we can get a more accurate (and probably lower) estimate of your risk if a terrorist attack does occur. Gather that data, and talk to us about how best to protect your business against the unthinkable.
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All content © 2014 Professional Marketing Associates, Inc. This newsletter is not intended to provide specific legal or insurance advice. Please consult your individual agent for further information on the topics covered.
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