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Whenever you're asked to bid on a job, you're usually required to certify that the price is firm and that there won't be any unexpected expenses and cost overruns once the project is underway. Because this is standard practice in the industry, it's understandable that some contractors are surprised that their insurance costs don't operate the same way -- especially when the contractor has asked agents for "bids" on the insurance package. Neither Workers Compensation nor General Liability, two of the key coverages in Construction insurance, usually set fixed premiums. Because payrolls and/or revenues the contractor pays or earns during the policy period determine the premiums, and there's no way to know these costs in advance, the premiums will also be estimates. Once actual payrolls and revenues are known (usually after an insurance company audit after the end of the policy period), the company will set the final premium based on these figures. The contractor -- you -- will then receive either a refund (if your insured losses were lower than expected) or a bill for the additional premium due (when these losses are higher than expected). Although it's never pleasant to owe more money after a policy has expired, keep two things in mind: First, if the insurer were able to predict the final results accurately, it would have charged this amount in advance. Second, an additional premium due after an audit shows that you had a better year than expected -- and that's always good news! If you have any questions about how your insurance works or how premiums are calculated, just give us a call. We're here to help.

Workers' compensation requires an end of the policy year audit to assure proper premium is charged. This process protects both the insured and insurers. Think through this process to make it easier, and cost saving. First, choose a policy year that creates an easy audit. The calendar year works for many companies. You already must report payrolls to the US government, the paperwork is essentially done. Calendar quarters work for the same reason. If you prefer to use your corporate tax year, go ahead. If you complete quarterly profit and loss, you can use a financial quarter. But choose an annual period which already has an audit trail. Keep payroll records separate for each workers' compensation classification. Normally, this record keeping is straightforward. The same people specialize in certain tasks: clerical, sales, labor, or drivers. Some operations can be more complex. If labor crosses from one specialty to another, perhaps a carpenter helps pour a concrete slab, that payroll should be split on an hourly rate. The higher rate applies otherwise. Demand any subcontractor, for example a hood cleaning crew for a restaurant, provide a Certificate of Insurance (COI). Technically, insurance companies can charge for the payroll portion of any contracted work in the absence of a COI. If you use to a non-covered contractor, keep those records to properly assign a discount for premium. Lastly, keep records to isolate overtime pay. Overtime payroll receives a discount for premium purposes. Make audits easier. Choose a convenient policy period. Keep records for independent contractors with COIs, and payments to those without. Isolate overtime pay. Segregate individual payroll by classification if that individual works in multiple job descriptions. Your premium will be more accurate with a minimal additional management effort. And, the default position is always to increase payroll, and therefore, premium.

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Unfortunately, a number of erroneous beliefs about worksite safety are widespread in the construction industry. Here are seven common safety myths - and why they don't pass the reality check: Safety programs ensure worker safety. In practice, this means that binders on a variety of topics (usually regurgitated OSHA standards) end up gathering dust on a back shelf. Safety is common sense. Taking risk is a very personal matter. Some people skydive, others bungee jump; some race automobiles, others rock climb. Incentive programs improve safety. Because these programs usually reward not having a recordable incident, they benefit workers been lucky enough to avoid accidents - not to mention a natural tendency not to report injuries. Progressive punishment ensures safety compliance. The best punishment can do is achieve temporary compliance. Effective policing must be continuous and consistent, with clear consequences. Firing noncomplying workers solves safety problems. This is like trying to cure a disease by treating its symptom. Instead, find the error that led to unacceptable behavior and change it. Safety training is a leading safety indicator. The sign-in sheet shows only who attended the meeting. For training to work, managers need to test what individual workers learned - or didn't learn. Inspections and audits will uncover most workplace hazards. Inspections provide snapshots of workplace conditions at a given time, rather than an accurate picture of ongoing operations or activities. Every construction firm needs to evaluate its safety systems, practices, and procedures critically, challenge the status quo where needed - and take decisive action. Our agency's professionals would be happy to offer their advice at any time, free of charge.

Chances are that you outsource most risk management functions to an insurance company representative or agent. However, to protect your business against the risks you face at a price you can afford, you need to control the presentation of your loss and coverage information to insurers. In other words, it makes sense to provide what an underwriter needs to write your business: a “risk profile” that shows a historic record of your exposures, loss data, and insurance contracts. Your profile should include these items: A history of the firm that’s positive and realistic. The more effectively you’ve adapted to the recession, the better your chances of getting a competitive rate. Résumés of key management— to show that you and your team know your business. Marketing materials and Web page(s). A D&B Report. Without one, you might get a lower grading. If you’ve had financial problems, some insurance companies might be willing to write your business, as long as you provide this information upfront. Audited financial statements, if applicable. Estimated values, including sales, workers compensation payroll, automobile fleet, property and equipment. Sales and payrolls for the past five years. Insurance loss runs and claim runs during the past five years for all policies, valued within 90 days of renewal. An outline of your workplace safety plan(s). Fleet maintenance schedules, if applicable. Your workers compensation experience modification factor. Be sure to review all data on your company in the files of your insurance company and add it to your database. Maintaining a comprehensive, accurate, and updated risk profile, and staying on top of how you present this information,will play a key role in securing a comprehensive and cost-effective insurance program. Our risk management specialists stand ready to offer their advice at any time.

When businesses consider Intellectual Property management, they often think about protecting their own assets, in the form of copyrighted material, trademarks, patents and trade secrets. But businesses also need to ensure that they are managing the IP rights of others, according to Kirstin Simonson, a Segment Lead in Global Technology at Travelers. “This is especially true in the technology sector, which faces some of the most complex IP issues,” says Simonson. One common violation of intellectual property is software copyright infringement. A common scenario may include a company that purchases software licensing rights for 400 employees, and then fails to update the licensing for an additional 100 employees later added to staff. According to a BSA Global Software Survey, they found that 43% of the software installed on personal computers in 2013 was not licensed.¹ Why Businesses Need an IP Risk Management Program The survey also reported that only 35% of companies have written policies requiring the use of properly licensed software. It also found that there is an awareness gap about software policies between workers and IT managers. Appropriately ensuring the rights of others is an important part of risk management for your organization because IP, in all of its forms, is a critical business asset. Companies need an IP Risk Management plan because: They may face legal action for copyright infringement and other IP violations. They may have to perform an intensive software audit to prove they have resolved the problem. Use of unlicensed software may put the business at risk for data breaches, data loss or other forms of information security and network security threats. Laws protecting IP can vary greatly around the world, so it is important to understand which ones apply to your business. What to Include in an IP Risk Management Program “Like all risk management, a good IP Risk Management Program needs to be proactive and comprehensive from an enterprise perspective,” says Simonson. “Consider IP rights management as a tool for growth, and not something to consider once the product is out to market.” An IP rights management program should include: The ability to track licensing relationships and royalty obligations. Companies should consider some form of automated tracking to ensure they are not only managing their own IP rights that are licensed to others, but they are living up to the licensing agreements they have in place with third parties. Formal clearance procedure and registration strategy. Engaging legal counsel to perform an IP search may be appropriate in many instances or at the very least, determining whether there are automated tools that can assist in the process. Having a well-defined strategy for determining whether title is clear to the IP, whether it should be registered and how to maintain the registration. Contracting and licensing agreements should include appropriate provisions. Whether it is a work-for-hire arrangement where the IP rights would be assigned to the business or a licensing agreement to use the IP, it is critically important these be spelled out and managed. Response plan or dispute resolution plan in the event someone challenges your IP rights. Just like any peril or loss a business may face, whether it is hurricane, liability allegations arising out of the failure of the product, or a cyber event – a strong response plan when an event happens will save hours and dollars. Education of all employees of what constitutes IP and how their misuse or mishandling can put the company at risk. Train everyone in the company so they understand how they might put the business at risk. Download the White Paper on How to Protect and Maximize Your Company's Intellectual Property > Get Technology Resources that Can Help You Turn Risk into a Business Advantage > ¹ http://globalstudy.bsa.org/2013/

There comes a time when you know you are a Professional Salesperson, no one has to tell you, you just know. When that day comes, you look around, and say to yourself, what is the next step? The vast majority of Professional Salespersons decide to open their own shop, which is a good decision for some, but not all.

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