Developing a Small Business Disaster Recovery Plan

Developing a Small Business Disaster Recovery Plan
Of all businesses that close down following a disaster, more than 25 percent never open their doors again. While there’s no way to lower the risk of a natural disaster like a hurricane, there are critical measures that can be taken to protect your company’s bottom line from nature’s fury. A disaster plan and adequate insurance are keys to recovery.

Develop a Disaster Recovery Plan
No matter how small or large a business, a business impact analysis should be developed to identify what an operation must do to protect itself in the face of a natural disaster. Large corporations often hire risk managers to handle this task and some companies hire consultants with expertise in disaster planning and recovery to assist them with their plans. But small businesses can do the analysis and planning on their own.

Steps for Developing a Business Recovery Plan

■Set up an emergency response plan and train employees how to carry it out. Make sure employees know whom to notify about the disaster and what measures to take to preserve life and limit property losses.
■Write out each step of the plan and assign responsibilities to employees in clear and simple language. Practice the procedures set out in the emergency response plan with regular, scheduled drills.
■Compile a list of important phone numbers and addresses. Make sure you can get in touch with key people after the disaster. The list should include local and state emergency management agencies, major clients, contractors, suppliers, realtors, financial institutions, insurance agents and insurance company claim representatives.
■Decide on a communications strategy to prevent loss of customers. Post notices outside your premises; contact clients by phone, email or regular mail; place a notice in local newspapers.
■Consider the things you may need initially during the emergency. Do you need a back-up source of power? Do you have a back-up communications system?
■Human Resources. Protect employees and customers from injury on the premises. Consider the possible impact a disaster will have on your employees’ ability to return to work and how customers can return to your shop or receive goods or services.
■Physical Resources. Inspect your business’ plant(s) and assess the impact a disaster would have on facilities. Make sure your plans conform to local building code requirements.
■Business Community. Even if your business escapes a disaster, there is still a risk that it could suffer significant losses due to the inability of suppliers to deliver goods or services or a reduction in customers. Businesses should communicate with their suppliers and markets (especially if they are selling to a business as a supplier) about their disaster preparedness and recovery plans, so that everyone is prepared.
■Protect Your Building. If you own the structure that houses your business, integrate disaster protection for the building as well as the contents into your plan. Consider the financial impact if your business shuts down as a result of a disaster. What would be the impact for a day, a week or an entire revenue period?
■Keep Duplicate Records. Back-up computerized data files regularly and store them off-premises. Keep copies of important records and documents in a safe deposit box and make sure they’re up-to-date.
■Identify critical business activities and the resources needed to support them. If you cannot afford to shut down your operations, even temporarily, determine what you require to run the business at another location.
■Find alternative facilities, equipment and supplies, and locate qualified contractors. Consider a reciprocity agreement with another business. Try to get an advance commitment from at least one contractor to respond to your needs.
■Protect computer systems and data. Data storage firms offer offsite backups of computer data that can be updated regularly via high-speed modem or through the Internet.


Review Your Insurance Plan
Make sure you have sufficient coverage to pay for the indirect costs of the disaster—the disruption to your business—as well as the cost of repair or rebuilding. Most policies do not cover flood or earthquake damage and you may need to buy separate insurance for these perils. Be sure you understand your policy deductibles and limits.

New additions or improvements should also be reflected in your policy. This includes construction improvement to a property and the addition of new equipment.

For a business, the costs of a disaster can extend beyond the physical damage to the premises, equipment, furniture and other business property. There’s the potential loss of income while the premises are unusable. Your disaster recovery should include a detailed review of your insurance policies to ensure there are no gaps in coverage. Your policy should include business interruption insurance and extra expense insurance. Even if your basic policy covers expenses and loss of net business income, it may not cover income interruptions due to damage that occurs away from your premises, such as to your key customer or supplier or to your utility company. You can generally buy this additional coverage and add it to your existing policy.


Basic Commercial Insurance to Consider


■Building Coverage provides coverage up to the insured value of the building if it is destroyed or damaged by wind/hail, or another covered cause of loss. This policy does not cover damage caused by a flood or storm surge nor does it cover losses due to earth movement, such as a landslide or earthquake, unless added by endorsement.
■Business Personal Property provides coverage for contents and business inventory damaged or destroyed by wind/hail, or another covered cause of loss.
■Tenants Improvements and Betterments provides coverage for fixtures, alterations, installations, or additions made as part of the building that the insured occupies but does not own, which are acquired and made at the insured's expense.
■Additional Property Coverage provides for items such as fences, pools or awnings at the insured location. Coverage limits vary by type of additional property.
■Business Income provides coverage for lost revenue and normal operating expenses if the place of business becomes uninhabitable after a loss during the time repairs are being made.
■Extra Expense provides coverage for the extra expenses incurred, such as temporary relocation or leasing of business equipment, to avoid or minimize the suspension of operations during the time that repairs are being completed to the normal place of business.
■Ordinance or Law provides coverage to rebuild or repair the building in compliance with the most recent local building codes.

The cost of high productivity

The cost of high productivity

A publication called Manufacturing.net reports that Japanese workers filing work comp claims due to mental illness caused by being overworked spiked 22% last year.

New standards for certifying mental illness due to work-related issues may also be a factor, according to the story available here.

But according to the San Francisco-based Integrated Benefits Institute, research from Japan has shown that “there is a significant health and productivity difference between ‘workaholism’ and (healthy) employee engagement.”

That is important to keep in mind. As the IBI said, “in tough economic times, many employers may expect workers to put in a 60-hour work week month after month without significant business repercussions.”

But poorer employee health and reduced job performance are a potential outcome. Are increased comp claims also a potential?

The San Diego- based Disability Management Employer Coalition last year published a paper titled “Extreme Productivity: Are Your Employees Hitting the Wall?”

Several large employers, disability insurers, and mental health experts contributed to the DMEC paper. It discusses ways employers can help their employees rather than allow them to burn out due to long work weeks and high productivity demands.

Subrogation and what it is...

Suppose you’re in a car accident and it is clearly not your fault. Your car is wrecked and your neck and back have been injured. You are covered for both the damage to your car and your personal injuries, and so you call your insurance company and they pay all of your expenses relating to the accident. Later, your insurance company, realizing that the other party at fault also has insurance that will cover the damages, seeks out reimbursement from that insurance company since its insured was actually at fault for the accident. This is called subrogation.

Subrogation refers to an insurance company seeking reimbursement from the person or entity legally responsible for an accident after the insurer has paid out money on behalf of its insured. The general rule is that, after paying your claim, your insurer is “subrogated” to the rights of your policy and can “step into your shoes” to go after or sue the negligent party on your behalf. Not all insurers subrogate for medical bills. If they do, it could be against the other driver’s insurance, but it could also be against your own separate health insurance policy or any other medical insurance that would cover your treatment.

Subrogation may also be employed when your insurer settles your collision claim for damage to your vehicle due to another driver’s negligence. Generally, your insurer will have you sign a subrogation release that assigns your right of recovery against the person responsible for your loss to them. Insurers may not stall settling your claim until they get paid from the person at fault. Subrogation usually occurs some time after the original claim is settled. Some insurers will include the deductible when they subrogate and you will get your deductible back when the other driver or their insurance company pays the subrogation claim.

What if the accident was your fault?

If the accident was your fault, you are responsible for the damages caused. If the accident was only partly your fault, you may be only responsible for a portion of the damages depending on the laws of your state. The other driver’s insurance company will likely subrogate against you or your insurance company to pay for the damage to their insured’s car and/or their medical bills. Keep in mind that often you can negotiate the amount of damages that is being claimed and pay out the amount over time. If you don’t have insurance and a claim is being subrogated against you, it is a good idea to contact a car accident lawyer to make sure you are not getting taken.

Be patient, but keep on top of your claim.

It is best to cooperate with your insurer, within reason of course, when a subrogation claim has been made. In most cases, the two insurance companies are going back and forth to verify what happened and what amounts have been paid out. Unfortunately, this takes time – sometimes too much time. Be patient, but keep in close contact with your claims person so your claim doesn’t get pushed to the bottom of the pile!

Insurance is a funny thing..

funny motor insurance claims
"I was driving along the motorway when the police pulled me over onto the hard shoulder. Unfortunately I was in the middle lane and there was another car in the way.." (Thanks M Robson)

"Going to work at 7am this morning I drove out of my drive straight into a bus. The bus was 5 minutes early.." (Thanks N Bradley)

"I was driving along when I saw two kangaroos copulating in the middle of the road causing me to ejaculate through the sun roof." (from an Australian claim form - Thanks N Shepherd)

"The accident happened because I had one eye on the lorry in front, one eye on the pedestrian and the other on the car behind." (Thanks Sharon Burrows)

"I started to slow down but the traffic was more stationary than I thought."

"I pulled into a lay-by with smoke coming from under the hood. I realised the car was on fire so took my dog and smothered it with a blanket."

Q: Could either driver have done anything to avoid the accident? A: Travelled by bus?

The claimant had collided with a cow. The questions and answers on the claim form were - Q: What warning was given by you? A: Horn. Q: What warning was given by the other party? A: Moo.

"I started to turn and it was at this point I noticed a camel and an elephant tethered at the verge. This distraction caused me to lose concentration and hit a bollard."

"On approach to the traffic lights the car in front suddenly broke."

"I was going at about 70 or 80 mph when my girlfriend on the pillion reached over and grabbed my testicles so I lost control."

"I didn't think the speed limit applied after midnight"

"I knew the dog was possessive about the car but I would not have asked her to drive it if I had thought there was any risk."

Q: Do you engage in motorcycling, hunting or any other pastimes of a hazardous nature? A: "I Watch the Lottery Show and listen to Terry Wogan."

"First car stopped suddenly, second car hit first car and a haggis ran into the rear of second car."

"Windscreen broken. Cause unknown. Probably Voodoo."

"The car in front hit the pedestrian but he got up so I hit him again"

"I pulled away from the side of the road, glanced at my mother-in-law and headed over the embankment."

"The other car collided with mine without giving warning of its intention."

"I collided with a stationary truck coming the other way"

"A truck backed through my windshield into my wife's face"

"A pedestrian hit me and went under my car"

"In an attempt to kill a fly, I drove into a telephone pole."

"I had been shopping for plants all day and was on my way home. As I reached an intersection a hedge sprang up obscuring my vision and I did not see the other car."

"I was on my way to the doctor with rear end trouble when my universal joint gave way causing me to have an accident."

"An invisible car came out of nowhere, struck my car and vanished."

"I was thrown from the car as it left the road. I was later found in a ditch by some stray cows."

"Coming home I drove into the wrong house and collided with a tree I don't have."

"I thought my window was down, but I found it was up when I put my head through it."

"The guy was all over the road. I had to swerve a number of times before I hit him."

"I had been driving for forty years when I fell asleep at the wheel and had an accident."

"As I approached an intersection a sign suddenly appeared in a place where no stop sign had ever appeared before."

"To avoid hitting the bumper of the car in front I struck a pedestrian."

"My car was legally parked as it backed into another vehicle."

"I told the police that I was not injured, but on removing my hat found that I had a fractured skull."

"I was sure the old fellow would never make it to the other side of the road when I struck him."

"The pedestrian had no idea which way to run as I ran over him."

"I saw a slow moving, sad faced old gentleman as he bounced off the roof of my car."

"The indirect cause of the accident was a little guy in a small car with a big mouth."

"The telephone pole was approaching. I was attempting to swerve out of the way when I struck the front end."

"The gentleman behind me struck me on the backside. He then went to rest in a bush with just his rear end showing. "

"I had been learning to drive with power steering. I turned the wheel to what I thought was enough and found myself in a different direction going the opposite way."

"I was backing my car out of the driveway in the usual manner, when it was struck by the other car in the same place it had been struck several times before."

"When I saw I could not avoid a collision I stepped on the gas and crashed into the other car."

"The accident happened when the right front door of a car came round the corner without giving a signal."

"No one was to blame for the accident but it would never have happened if the other driver had been alert."

"I was unable to stop in time and my car crashed into the other vehicle. The driver and passengers then left immediately for a vacation with injuries."

"The pedestrian ran for the pavement, but I got him."

"I saw her look at me twice. She appeared to be making slow progress when we met on impact."

"The accident occurred when I was attempting to bring my car out of a skid by steering it into the other vehicle."

"My car got hit by a submarine." (The Navy informed the wife of a submariner that the craft was due in port. She drove to the base to meet her husband and parked at the end of the slip where the sub was to berth. An inexperienced ensign was conning the sub and it rammed the end of the slip, breaking a section away, causing her car to fall into the water. The Navy paid the compensation claim.) (Thanks Jay Kuivinen)

The English comedian Jasper Carrott has used funny insurance claims in his stand-up act for a long time, including some featured above. Here are three others, kindly suggested by Andrew Moignard.

"I bumped into a lamp-post which was obscured by human beings."

"The accident was caused by me waving to the man I hit last week."

"I knocked over a man; he admitted it was his fault for he had been knocked down before."

"A house hit my car." (A house was being moved by a large truck. My friend had his car parked on the side of the road correctly. The house began to tilt off the truck and eventually fell off the truck, landing on my friend's car. He eventually had the insurance paid, after lengthy explanation and the moving company confirming the story.) (Thanks Ben Keirnan)


funny insurance claims outside of the motor industry
(From A Reineri) - Extract from office worker's compensation claim form:
Agent of the injury: Drawer
How did accident occur: Drawer fell out and landed on my foot
Where was claimant injured: Foot

(From M Radbill) - Years ago, my husband was driving the kids to preschool in our rural neighborhood. Out of nowhere a ten point buck [a very big deer] leapt out of the side bushes and smashed into the car. Luckily the only injuries were to the car. When the insurance company was called to file the claim, they wanted to know if the buck's feet were ON the ground or OFF the ground when it hit the car. "Why?" I asked. They said this would determine whether the claim was covered or not. I asked which one was covered. You can guess the rest, but I still wonder who is looking at feet when you are being charged by a huge animal! (Incidentally, feet ON the ground was covered. Their logic was seemingly that the car was hit by something, rather than vice-versa, if that makes sense. And for those who don't know, a 'ten point buck' refers to a big male deer with ten points, or tines, on its antlers.)

(From A Whittingham) - I was reminded of one I read when working for a plumbing firm many years ago. A lady had claimed for a leaking toilet and had sent in the form like this: "The leaking toilet is reached through my back passage, but please tell the plumbers when they arrive that they must knock on the front door as my back passage is blocked with the things out of the toilet.."

(From P Clough) - I once made a claim due to a broken washing machine. I put a load of washing on before going away for the weekend. On my return I found it to be stuck in a boiling cycle and my whole kitchen was nigh on destroyed by the steam. When I made a claim through my broker to the insurance company it was denied as I was not insured for steam damage! My broker quickly pointed out that water is H2O and the same chemical compound at steam! They were not having it. The judge, in the small claims court, did not even allow the insurance company's counsel to speak. He took two minutes to read out the case, laughed and said "Water is H2O as is steam - case for the plaintif." The claim was swiftly settled by an embarrassed insurance company.

(From Angela K) - When I worked in personnel at an airline I handled claims for processing. I received the following explanation from the catering department: "Burned elbow while putting tongue into pot". Apparently the fellow was in the process of cooking tongue, which is then sliced for sandwiches. This was approximately 1960 when airlines had cooking facilities in the hangars.

Downside to Management Incentives

Connecting business unit manager bonuses to safety performance can reduce injuries and eliminate comp costs, but a grocery chain's settlement with prosecutors shows how attempts to reduce claims can go too far.


Several risk managers speaking at the Risk and Insurance Management Society Inc.'s annual conference last week discussed implementing a safety culture and reducing comp costs.


They spoke about tying manager bonuses to comp losses as one among several efforts they employ to maintain a safety culture. A couple of the risk managers briefly mentioned that the bonus practices can have drawbacks, but they didn't elaborate.


But here is one potential problem.


This week several California district attorneys announced a settlement involving Raley's grocery stores. The grocer will pay $550,000 to settle charges for alleged illegal claims handling.


According to a press release available here, store managers tried to dissuade injured employees from filing comp claims.


The prosecutors didn't say whether manager bonuses were at stake.


But the investigation “revealed a fairly widespread practice by Raley's managers of attempting to dissuade injured employees from filing claims, suggesting that injured employees use their own health insurance for work related injuries, instead of reporting accidents/injuries to the agencies required under the Workers Compensation law,” the press release states.


The charges serve as an example that manager training should accompany bonus programs and other efforts that depend on supervisors to help reduce losses.


While manager participation is often crucial, there are limits.


Part of Raley's settlement agreement requires the company to train its managers.

Three Things Commonly Overlooked when Insuring an Auto Service Garage

Three Things Commonly Overlooked When Insuring your Auto Service Garage
The auto services industry is a tough and demanding industry. In fact, there is no other industry that relies as heavily on a solid reputation and word-of-mouth for business success as the auto services industry. In the past several years I have seen operations rise to great success because they established a strong and trustworthy reputation in their community. On the other hand, I have seen several operations fail because they did not establish a strong reputation within their community.

Working with an insurance agent familiar with the demands of the auto services industry can give you an edge over your competition. A good agent will not only provide you with a price competitive policy, he or she will also assist you in managing the risk involved in owning an auto repair garage. Does your agent provide you with any risk management resources? Does your agent visit your garage on a regular basis? Are they accessible when you need them? Do they provide with materials and documents to help you train your employees? These are just some things to consider when evaluating your current agent.

What about your current policy? Does that need to be evaluated too? Here are three things commonly overlooked in most auto service operations that I meet with.

1. Employee Tool Coverage: Do your employees bring their own tools to work? Chances are they do and chances are those tools are of tremendous value. Your employees see their tools as an investment. It goes hand-and-hand with their career and good tool chest reflects well upon their professional desire to be ready and able to complete any job. There is very good chance that your existing policy does not protect employee tools. You may have mistakenly thought that these tools would be covered under the contents portion of your property policy. However, that is not the case. Employee Tool Coverage is a separate coverage that needs to be requested. Keep in mind that the number one item stolen during the theft of an auto garage is employee tools.
2. Garage Keepers limits too low: Garage Keepers Insurance is what protects other peoples vehicles while in your care, custody, and control. Many auto service operations will set their Garage Keepers limit based simply on what they can afford. Or, they will base it on some home grown formula that goes something like this: I work on three cars a day, each is worth ten thousand dollars, so I need a limit of thirty thousand dollars for my garage keepers policy. When setting a limit for Garage Keepers coverage, there is a lot more that needs to be considered. How often do you work on high value vehicles? How many vehicles are on your premise at any given time? Do you impound vehicles for a local tower? Do you park vehicles in your garage overnight? A good agent will carefully assess the answers to these and many other questions when deriving a limit for garage keepers.
3. No Umbrella Policy Provided: An Umbrella Policy is essential to all garage operations. Chances are your standard liability policy will provide coverage for a liability loss somewhere between five hundred thousand up to a million. Are you aware that your standard policy does not pay for legal defense? So, if your employee takes a test drive and injures or kills someone and a lawsuit is filed against you for let’s say several hundred thousand dollars, then you will have to pay an attorney for defense. Your underlying policy will only pay the settlement amount. It is not uncommon for the cost of defense to exceed tens of thousands of dollars. An Umbrella Policy will provide for an additional amount of coverage plus it will add legal defense to your policy. An Umbrella Policy is usually very affordable.

When was the last time you had your policy reviewed? Because of our litigious society, insurance policies should be reviewed at least every two years. When was the last time you had an outside professional that understands your market provide you with a complete and accurate assessment of your coverage?

Welcome...

I would like to welcome Giles Auto Body of Inkster, Michigan and Wacker Farm of Manchester Michigan. I appreciate your business and look forward to servicing you.

Market Updates

Recently, our agency has had several carriers approach us and request that we target specific markets that they perform well in. Our agency has had tremendous success in Municipalities and Public Entities through Trident Insurance Group. Trident has requested that our agency take the lead in generating market penetration throughout Michigan, Ohio & Indiana with their Waste Insurance Program. Our agency currently insures several Waste and Recycling operations, provides numerous pollution liability packages to a variety of markets, and is familiar with insuring large auto fleets. Trident feels this makes our agency ideal to capitalize on this market and we agree.

Our contractors market continues to perform strong and we are looking to continue growth in this sector. In particular, we are expanding our higher risk type operations related to contracting. This can include operations such as HVAC companies working on Boilers or installing solar panels, Highway construction, and contractors requiring pollution liability coverage.

How you can help...

If you know of any websites or online resources that could be of use to others, then please let me know by emailing me the link so I can add it to my site. It is my goal to create as strong a database as possible so that my clients can easily access all the safety resources they need in one place. Any help or suggestions you may have are greatly appreciated.

According to this article, a reduction in claims means economic recovery

Here is a copy of an article I recently read. In summary, Tim Barry of Specialty Risk Services feels that a reduction in claims is an indicator of economic recovery. I can see where he's coming from on this. We are taught in the insurance world that fraudulent claims increase during tough economic times. So, logic would dictate that a decrease in fraudulant claims indicates an upward trend in the economy due to less economic strain on businesses.

I don't fully agree for three reasons. One, the insurance industry has tightened its underwriting process and has been more pro-active in regards to loss control. Both reduce the likelyhood of fraudulant claims. Second, Workers Compensation claims are a major contributor towards fraudulant claims. With less workers in the work force, claims are naturally reduced. The final reason is that those that are likely to file fraudulant claims may have been exhausted from the system. File too many claims (especially one's that are suspected of fraud) and you will get cancelled and possibly become uninsurable.

None-the-Less, here is the article...

The recession ended Oct. 1, claims fraud data shows
16 days ago Tags: Workers Compensation Claims Services
The National Bureau of Economic Research hasn't announced an official end to the current recession. But the slump might have sputtered out on October 1, according to a claims investigator.


Tim Barry is assistant VP and special investigations director for Specialty Risk Services LLC, a Hartford, Conn.-based third party administrator.

His data shows an upward trend in fraud referrals from adjusters peaked on October 1, and then dropped slightly and pretty much leveled off when adjusted for claims volume.

Mr. Barry spoke on combatting fraud at the Risk and Insurance Management Society's annual conference last week in Boston.

In the process he explained the inverse relationship between the economy and fraudulent claims. As the economy plummets fraud increases and then decreases in better times.

Based on that Mr. Barry told a conference session, somewhat tongue in cheek, that the recession ended last fall.

Workers who remain unemployed would disagree that the recession is over.

But we slid into the recession long before most people realized it was underway and the same is likely to occur as we move out of it.

The National Bureau of Economic Research announces dates for business cycle peaks and troughs. It describes a recession as a “significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.”

The NBER usually doesn't peg a date for the beginning or end of a slump until more than a year after those occurrences.

For example, it announced a December 2007, peak in economic activity on Dec. 1, 2008. The November 2001, recession trough was announced on July 17, 2003.

According to a BusinessWeek story I read on my way home from RIMS' conference the NBER currently believes it is premature to declare the recession's end as unemployment and other problems persist along with signs of improvement.

But it will be fun to eventually see whether the NBER, when it finally announces the date for the recession's end, agrees with Mr. Barry's data.

Taking time to say thanks..

I would like to take some time to say thanks and welcome some of my new clients...So, welcome aboard Howard's Towmaster of Elkhart Indiana, Leonardo's Marble and Granite of Wixom, MI., Ann Arbor Door and Window of Ann Arbor, MI., and Natures Garden Center of Saline, MI. I'm glad to have you as clients and I look forward to serving you.

What is Pollution Liability?

Pollution liability insurance is known as "pollution incidents"" in the insurance world. There is a thought to suggest that this insurance policy came into picture following the great amount of asbestos litigation in the 1970s. It was around that time that insurers thought it better to do away with pollution liability insurance in general policies and instead offer it independently.
Pollution liability insurance protects you in two ways: one is when the pollution takes place on your property; the other is when you suffer losses resulting from pollution on somebody else's property. In such cases, it is the insurer's responsibility to recover costs from the party that caused the incident. Conversely, your policy pays for damages you may cause to other properties.
The most general use of pollution insurance is to protect lenders, buyers and sellers in property transactions. Conventionally, buyers do hire environmental consultants to assess sites. That may take a little over twenty days and cost up to $5,000. Concomitant to the delay, there is another major danger in this. Consultants opine on the current condition of the site and not what may happen in the future.
Pollution liability insurance, on the other hand, guards the insured for the entire term of the policy, including for any later discovery of damage. The policies are largely renewable and can be in place for up to ten years. Also, these policies are a lot more cost effective than a site assessment.
Pollution liability insurance is doubtless a useful and an economically viable way of managing environmental risks. It can be particularly beneficial to those companies that deal with materials that may be considered as pollutants once released into the environment.

Lansing Fire

From David Chapman Agency, Inc.

80 residents were displaced after a fire ripped through a Lansing apartment complex this morning. Many of these people lost everything they owned.

Renter's insurance covers your stuff while you are living in an apartment or rental home as well as providing personal liability coverage. Your landlord's insurance only covers the building not your stuff.

Renter's insurance is cheap; starting as low as $100 / year and can qualify you for a multi-policy discount on your auto insurance.
Red Cross: 80 residents displaced by Lansing apartment fire lansingstatejournal.com Lansing Stat
www.lansingstatejournal.com
UPDATED 8:30 A.M. -- The American Red Cross Mid-Michigan Chapter is reporting that 80 residents were displaced by a large fire that broke out early today at a south Lansing apartment building.

Business Start Ups & Legal Issues

Owning and operating a small business is no small feat. It also comes saddled with a variety of legal issues that are worthy of a great deal of attention. Legal business issues apply to ventures of all sizes. Small, medium or large, legal protection is just as important as good accounting practices.

Startup Legal Business Issues

The importance of legal issues in business begins right at the start of the business venture. Laying the groundwork for a small business consists of the following:

The Business Name: Quite possibly the first legal issue one crosses in business is developing the actual name of the company. Obviously, you cannot legally use a business name that has already been chosen by another company. Local state agencies have detailed search systems that will allow you to research what names are already in use and if the ones you are considering are available. Typically, the Secretary of State will have information available on business names and legal protection for the business name that you choose.
Business Structure: There is more than one way to structure your small business, and each one provides legal protection in a variety of different capacities. Some of the options include sole proprietorship, partnership, corporation, s-corporation, or a limited liability company. The legal issues in business change with each of these different structures, and it is important to do comparative research before selecting the best option.
Business Licenses: Depending on the nature of your business, there may be a variety of licenses or permits that are required by the state or federal government. At the absolute minimum, you need to secure a business license and tax registration. These will help you to avoid certain legal business issues. Research the type of business you are starting to see if there are any other special licenses required.
Ongoing Legal Business Issues

After the doors are open and the operations are running smoothly, legal issues in business don’t disappear. The following factors influence legal business issues on a regular basis:

Non-Disclosure Agreements: If you are providing all or even part of the financing for your business, or if you sign contracts with suppliers and vendors, non-disclosure agreements will provide the degree of legal protection that you seek. Whenever an outside firm has access to pertinent information about your business, you must develop an agreement to ensure confidentiality.
Employee Labor Law: There are a myriad of legal business issues pertaining to employees and labor. For example, discriminatory hiring practices of any kind are not permitted, and you also must be very careful when you fire employees. There are also restrictions regarding age and work permits for non-citizens of the United States.

The Occupational Safety & Health Administration (OHSA) also provides a host of requirements regarding workplace safety. Complying with OSHA standards is part of protecting your employees and one of the foremost legal issues in business. You will need to actively comply with standards and devise strategies for adapting to any changes on a regular basis.

There are more startup and ongoing legal business issues when it comes to small business, but these basics will get you started on the right foot. Whenever possible, it is best to consult with an attorney before making any decision or changes that may impact legal protection issues.

Traffic Never Stops...Towing Safety Tips

Tow Truck Operations
Tow truck operators transport cars and trucks that are damaged, non-operational, or parked illegally, aid motorists, and keep streets and highways clear. Traffic never stops, so tow truck operators are called out at all times of day, year-round. The job involves personal safety, driving, heavy equipment, and traffic safety, so operators should learn safety basics for tow truck operations.

Mind your personal safety; ensure that someone is tracking or has a record of your planned route. Don’t enter a situation that looks or feels dangerous; be calm and diplomatic when dealing with customers. When exiting your truck, be aware of the traffic around you; look and think before you make a move. To avoid a fall, use the steps and handles getting in and out of the truck; never jump in or out of the cab or bed.

Maintain your fitness for the job which may require stretching, bending, lifting, and climbing. Use good body mechanics and lifting techniques to avoid back injuries. Don’t strain, twist, or over-reach, and avoid extreme or awkward positions as much as possible.

Drive defensively and stay alert. Avoid alcohol, drugs, and medications that cause drowsiness. Follow safe hours of service guidelines. Wear your seatbelt. Obey speed limits and road regulations. Don’t multi-task; keep your eyes and mind on the road. When towing, use your lights or a light bar to signal your intentions and show the rig length.

Know your equipment rating and capacity; overloading may cause an accident. Be aware of your truck height for maneuvering under overpasses and bridges. Inspect the truck before each use. Check the utility body and mounts and fix broken bolts, cracked welds, or stress fractures. Inspect the chains and hooks on the rig; make sure the security pins are not bent or falling out and the chain has no bent, stretched, or hammered links.

Inspect the winch and cable often, keep it clean and lubricated; repair or replace if necessary. Use hooks and clamps rated at the same capacity as the wire. Maintain 3 to 5 wraps on the winch drum and rewind it periodically to lay the cable flat and even. Watch the lines so that they don’t get tangled; placing continued pressure can shear the cable and send it flying at high speed.

When hooking up a towed vehicle, block and chock the wheels before disengaging the driveshaft or the brakes. Try not to work under a lifted truck; if you must do so, block and chock the wheels, front and back. Use lockout/tagout procedures on the wheel lift, boom and winches while working under a truck or between the truck and towed vehicle. If you have a remote to the lift, boom or winch, do not leave it in your pocket or on the ground where it could be accidentally activated; lockout and secure the remote inside your truck until you are ready to use it.

When working in the tow-away zone, stay in the safety zone.

Is it time for a new Agent?

Most business owners wait until their policy is up for renewal before reviewing the policy. Often, the owner of the business does not review the policy at all and instead makes the decision to simply trust the agent to review the policy. The problem is, the agent does not run or operate your business. They simply cannot be aware of all the changes that may have occurred since last year’s review. Sure, you contacted your agent when you bought that new company van. They responded quickly, the van was added to the policy, and your insurance proofs were sent promptly. But did you inform your agent of the upgrades you’ve made to your building in the past year? If not, then you may be missing out on some discounts. Did you inform your agent of changes in payroll? If not, then you may get an unexpected bill from your insurance carrier due to an increase on your Workers Compensation policy. Have you hired or let go of employees? Some General Liability Policies are rated based on the number of employees; this can cause an increase or reduction in premium on your General Liability as well.
It’s important that your agent maintains an ongoing relationship with your business. Here are a few questions to ask yourself when evaluating whether or not you should consider changing your insurance agent:
1. Are you more loyal to your agent then they are to you? You have been with an agent for several years, but have they visited you at every renewal? Do they stop or call periodically and inquire on issues related to your policy? Was the last time you saw them when they came to collect your down payment? Regular visits and occasional calls from your agent can make all the difference in the world. It will often play a vital role in helping you avoid insurance issues before they come up.
2. Does your current agent respond quickly to your questions and concerns? Are they difficult to get ahold of? Do you have their mobile number in the event of an emergency?
3. Do they provide you with the professional respect you require? This is often overlooked, but it is of great importance. Do you tolerate a less than normally acceptable level of care because you feel you couldn’t get the same coverage elsewhere, or at least not at the same price? The real question you need to ask yourself is, if they don’t treat me well when it comes to the small things, then how likely are they to perform well when it comes to something important such as a claim?
4. Does your agent shop your rates for you? Many agencies will have multiple carriers that they can shop your policy through. If you have an agent that meets or exceeds your expectations, then request them to shop your rates for you. Ask them to provide you with a list of each carrier and the rate they offered. A good agent will let you know if a new carrier is better suited for your company.
Now that you have a new agent, make sure you set clear expectations for one another. After all, you are essentially hiring this new agent as you would a new employee. Keep in mind that the agent also has the right to clarify how his/her agency works and what is expected of you as their client in order to keep the policy as accurate and up to date as possible. I refer to this as “Defining the Relationship." Taking a few minutes to define the relationship can not only save you from headaches down the road, it can also be the start of something good.