Buy – Sell Agreements Funded By Life Insurance

There is considerable planning that goes into running a business. This is especially true if there is more than one partner involved in the business. It is important to have a clear understanding and agreement if something should happen to one of the owners. According to David N. Barkhausen, “Buy-sell agreements among co-owners or present and future owners of a closely-held business are intended to assure the smooth future transition of its ownership. They provide the mechanism, and, if properly funded, the means, to effect a change in control and a transfer of interests upon the occurrence of a number of events, beginning with death, disability and retirement.”

Here are some of the benefits of a buy-sell agreement:

-Provides recovery for partners and heirs

-Tax advantages

-Provides for transfer of ownership and wealth

-Creates fair and market value exchange of ownership

What can be a trigger for a buy-sell agreement?

-Death, disability, retirement, divorce, loss of license, termination, and voluntary transfer of ownership.

How is a buy-sell agreement funded?

Any buy-sell agreement requires a decision regarding the type of insurance policy to purchase. The initial choice is between term and whole life insurance. The ability to maintain life insurance throughout a shareholder’s life is important. Of course there are other methods of funding including; cash, borrowing, and stock, but the most common is insurance.

We recommend you consult with an attorney and tax professional as part of your planning process.

Roussel Insurance & Financial Services is a recognized leader in the insurance industry. We offer highly competitive insurance rates for both business owners and individual services. With 32 years of experience, we continue to offer our clients exceptional service.

This information is intended for the client, individual or entity to which it is addressed. These articles contain concepts and opinions, and are not intended to represent the consensus of the insurance or risk community, nor to provide professional legal or tax advice.  Please seek professional legal or tax counsel before making any decisions.  The information provided does not change or modify any insurance policy, only the actual terms of the in-force policies will govern claim settlements.

How to Prepare My Business for an OSHA Audit

A California Business And Risk Update

‘OSHA audits are not usually something for which you get an advanced warning.  Often, an OSHA inspector simply shows up at your firm to conduct an inspection.  However, there are a number of things you can do to reduce your stress and to ensure that your audit goes smoothly.  It is always best to think about how your facility would respond to OSHA knocking at the door before it happens.

 What are some the things that might trigger an audit?

-A planned visit.

-A workers’ compensation claim.

-Follow-up on a previous inspection.

-A complaint.

An OSHA audit will generally consist of the following: the arrival, opening conference, tour, and closing conference. There are real benefits to planning in advance for an OSHA visit.  The benefits of advanced planning include:

-The visit will go more smoothly.

-You will be more prepared.

-It will create a more positive impression.

-May result in fewer violations.

Here are some items to keep in mind when preparing for a visit:

-Have all training documented, including new employee orientation.

-Keep your MSDS book in an accessible location, and keep it updated.

-Keep and update all injury/illness records.

-Fall protection plan for all work above 4 feet.

-Machine guarding must be OSHA compliant.

-Make sure housekeeping is managed everyday.

-All electric panels must be closed.

-All/any drums must be clearly marked, including the name of the product and the hazard type.

-Make sure all your posting requirements are up to date.

-Keep your safety committee meeting minutes up to date and accessible.

Closing comments:

-Be honest.

-Don’t discourage employees from talking.

-Think about hazards—not just standards.

Find more resources here:  Cal OSHA

Established by company president John Roussel in 1985. Roussel Insurance & Financial Services was founded to assist business owners and professionals in their insurance and employee benefit programs. The benefits of our service is to guide you, so we can find the insurance package that best fits your business.

This information is intended for the client, individual or entity to which it is addressed. These articles contain concepts and opinions, and are not intended to represent the consensus of the insurance or risk community, nor to provide professional legal or tax advice.  Please seek professional legal or tax counsel before making any decisions.  The information provided does not change or modify any insurance policy, only the actual terms of the in-force policies will govern claim settlements.

Construction Risks Increase in the Summer

California Contractors Insurance

Risk and insurance experts tell us that construction risk and injuries increase from June through September.  There are many things you can do to limit your construction risks.

This is also a great time to have us review work workers’ compensation and business insurance. As your exposures change, so should your business insurance.

• Be aware of heat illness. It is a good practice to require frequent water breaks during hot summer days. An OSHA investigation of heat-related incidents found that almost half of the cases involved a worker on their first day on the job.
• Make sure employees are wearing proper safety equipment.
• Offer sun screen to employees who work outside.
• You might even consider modifying work hours away from the hottest part of the day.

Workers Compensation Insurance

Workers’ compensation is an important part of your business insurance program. It is required by state law that your business has workers’ compensation insurance. Employees—Workers’ compensation provides injured employees with medical treatment and time loss in the event of a serious injury. Employers—Workers’ compensation provides employers with the security that insurance will be there to help treat and restore injured workers.

Roussel Insurance & Financial Services is a recognized leader in the insurance industry. We offer highly competitive insurance rates for both business owners and individual services. With 32 years of experience, we continue to offer our clients exceptional service.

This information is intended for the client, individual or entity to which it is addressed. These articles contain concepts and opinions, and are not intended to represent the consensus of the insurance or risk community, nor to provide professional legal or tax advice.  Please seek professional legal or tax counsel before making any decisions.  The information provided does not change or modify any insurance policy, only the actual terms of the in-force policies will govern claim settlements.

The Biggest Claims Myths

Let’s face the facts.  You buy insurance to protect yourself in the event of an accident, injury, or some other event. Filing a claim with your homeowner’s, auto or business policy should be easy, and the claims process should go smoothly. Let’s expose the myths around filing an insurance claim

1. Myth- Filing an online claim with an online insurer is easy and takes only minutes. Online insurance claims can take longer.
2. Myth- Any claim will cause my insurance premiums to go up or my insurance policy to be cancelled. A majority of insurance companies simply handle and settle the claim fairly and don’t cancel the policy. Factors that might cause a policy to be cancelled are multiple claims, claims that involve criminal activity, and drunk driving.
3. Myth- The adjuster’s job is to settle the claim for the lowest amount possible. Most adjusters are obligated to settle any claim per the terms of the policy.
4. Myth- I do not have anyone to help me through the process. Our office will help you through the process and answer any questions you may have. We are your advocate. This may not be true if you purchased your insurance online.
5. Myth- I can let my contractor or auto body shop handle the claim. Be aware of “ambulance chasers” that appear after a loss or accident and claim to have expertise in claims processing. They may not know your policy. Always call us for help.
6. Myth- All I need to do is report the claim. You will need to communicate with the adjuster and provided other information as needed.

Insurance is intended to help you recover after a loss. We are here to help you review and understand how insurance works.

Roussel Insurance & Financial Services is a recognized leader in the insurance industry. We offer highly competitive insurance rates for both business owners and individual services. With 32 years of experience, we continue to offer our clients exceptional service.

This information is intended for the client, individual or entity to which it is addressed. These articles contain concepts and opinions, and are not intended to represent the consensus of the insurance or risk community, nor to provide professional legal or tax advice.  Please seek professional legal or tax counsel before making any decisions.  The information provided does not change or modify any insurance policy, only the actual terms of the in-force policies will govern claim settlements.

Predictions For Small Businesses

A Business Insurance Update

2017 is set to be a very good year for small businesses. Many communities are promoting local businesses. Finally, there will be a number of large retailers closing their doors in 2017, and this might be a good thing for local businesses.

Security should be a central theme for your business in 2017.  Small businesses are a target for cyber criminals, as small businesses tend to have less sophisticated security systems.  AVG Technologies, a provider of security solutions, states that some of the biggest threats businesses must contend with this year include hacking of mobile devices, gadgets from the Internet, and cloud computing assets.

One of the biggest risks faced by businesses is the unintentional violation of laws and regulations. If you violate a law, or create a legal issue with another person or business, your business insurance may or may not respond.  We recommend that allowing us to complete a review of your business insurance to make sure that you have the proper business insurance.

Every business is at risk for a cyber breach. Even the White House recently experienced a cyber breach. Cyber breaches are now a fact of life, and every state now has mandatory requirements for data breach notification. Statistics show that 39% of all cyber incidents affect businesses with fewer than 100 employees.  If you store data, including private information on computers, use e-mail, generate revenue online, or use your computer to control production, manufacturing, or inventory, your company is at risk!

Today, almost any business can find itself facing a liability lawsuit.  Yet, many businesses do not even realize they have an exposure to professional loss.  A Management Liability lawsuit can put business and personal assets at risk, including the company’s assets, and even the personal possessions of the owners.  One simple mistake could cause financial devastation, as well as an end to your professional career.

At Roussel Insurance we strive for trust and reliability with our clients. Through our 30 years in the insurance business we have learned to achieve immediate and sustainable cost savings for businesses and individuals. We can help find you the right insurance options, so that no matter what your budget is we can minimize you’re spending and easily meet your needs.

This information is intended for the client, individual or entity to which it is addressed. These articles contain concepts and opinions, and are not intended to represent the consensus of the insurance or risk community, nor to provide professional legal or tax advice.  Please seek professional legal or tax counsel before making any decisions.  The information provided does not change or modify any insurance policy, only the actual terms of the in-force policies will govern claim settlements.

Even Small Businesses Need Broad Commercial Liability Insurance Coverage

To protect a small business from potential lawsuits, liability insurance is necessary. Policies vary greatly, and they cover different classifications of risks for varying costs. Before shopping for a policy, it is important to educate yourself about liability insurance.

Business Liability Insurance Is Available in Many Different Forms

Commercial General Liability, which is also called CGL, is a very broad insurance product. It covers claims from accidents, injuries, or negligence when the business is at fault.  Small businesses may face a wide array of damage charges. Personal injuries, property damage, libel, and slander are just a few examples.

Product Liability insurance covers legal fees for litigation involving a faulty product.  It also covers any personal or property damage charges caused by the defective product.

Professional Liability coverage pays for damages caused by services.  It is also called “errors and omissions” coverage.  This is for companies that market a service instead of a product. For example, professionals in medical clinics must have medical malpractice coverage.

An Employment Practice Liability Insurance policy offers insurance protection against claims and lawsuits that are brought against a business, its officers or directors, or its employees and managers, against harassment, wrongful termination, breach of employment contract, discrimination, invasion of privacy, compensation issues, and employee benefits administration.

There are other types of insurance designed for specialty businesses.  The nature of the business determines what type of coverage is necessary.

At Roussel Insurance we strive for trust and reliability with our clients. Through our 30 years in the insurance business we have learned to achieve immediate and sustainable cost savings for businesses. We can help find you the right insurance options, so that no matter what your budget is we can minimize you’re spending and easily meet your needs.

This information is intended for the client, individual or entity to which it is addressed. These articles contain concepts and opinions, and are not intended to represent the consensus of the insurance or risk community, nor to provide professional legal or tax advice.  Please seek professional legal or tax counsel before making any decisions.  The information provided does not change or modify any insurance policy, only the actual terms of the in-force policies will govern claim settlements.

Directors & Officers Insurance

Directors and officer’s liability insurance helps protect your business, owners, executives and managers if individuals, competitors, third parties or government regulators make claims. A lawsuit against directors and officers most commonly occurs when shareholders (private or public), clients, competitors or others feel they suffered a loss in the value of their shares because of actions that the board or senior management took or didn’t take.  In case you thought smaller private firms are immune from litigation, here are some claim examples.

Claim Examples:

1. A director of medical supply company was sued, along with his company, for allegedly misappropriating trade secrets. $200,000 was spent on defense costs and the case was settled for $400,000.
2. The estate of a recently passed director (president) sued the other directors for recent company poor performance. Claim settled for $750,000.
3. A company recruited a top sales person from a competitor who had an employment contract. The competitor sued for damages after losing its top producer. Defense costs were $250,000 and case was settled for $560,000.

Risk management, or loss control, is a concept well-known to corporate management. Most businesses large and small take precautionary measures to minimize the risks associated with fire, theft, product liability, work-related injury, and other common business exposures. Proactive management of D&O exposures can improve a company’s ability to recruit talented management, enhance the quality of corporate decision-making, and contain the cost of D&O liability insurance premiums.

What You Should Do:

• Consider Directors and Officer Liability Insurance
• Determine if there are any conflicts of interests among the directors. Directors and officers should avoid situations where their personal interest may, or appears to, conflict with the best interest of the company
• Directors need to be educated in the following:
  • Antitrust, political contributions, harassment, and confidentiality
• There should be regular scheduled board meeting, including proper notice. Meeting minutes should be retained forever
• Utilize a qualified attorney, insurance agent, and accountant to help you manage your risk.
• Consider Employment Practices Liability Insurance. Employment-related claims represent a high-visibility, fast-growing area of D&O liability
• Establish internal controls for accounting and financial reporting

At Roussel Insurance we strive for trust and reliability with our clients. Through our 30 years in the insurance business we have learned to achieve immediate and sustainable cost savings for businesses. We can help find you the right insurance options, so that no matter what your budget is we can minimize you’re spending and easily meet your needs.

This information is intended for the client, individual or entity to which it is addressed. These articles contain concepts and opinions, and are not intended to represent the consensus of the insurance or risk community, nor to provide professional legal or tax advice.  Please seek professional legal or tax counsel before making any decisions.  The information provided does not change or modify any insurance policy, only the actual terms of the in-force policies will govern claim settlements.

Have You Considered Professional Liability Insurance?

Most businesses purchase general liability insurance to protect their businesses against certain kinds of claims. These claims could include bodily injury and property damage. It is very important for businesses to understand the difference between professional liability and general liability.

Professional Liability insurance, also called “Errors & Omissions” insurance, protects against a claim from a third party who suffers a financial loss as a result of your services or actions.

If someone feels they have suffered a loss or damages due to a professional service, often their next action is a lawsuit. These kinds of actions can be costly and severely reduce a firm’s resources. Professional Liability insurance can help preserve assets and more importantly, help preserve the firm’s reputation.

If you perform any of these services, you may need professional liability insurance:

• Provide any construction management, which could include changing design plans, hiring sub-contractors and or overseeing construction projects
• Provide advice to clients
• Perform professional services
• Advise client on how to save money
• Provide advice on how to install equipment
• Recommend any building code changes

Industries that typically need Professional Liability Insurance include:

• Lawyers
• Real estate professionals
• Churches
• Non Profits
• Travel agents
• Medical professionals
• Funeral directors

This information is intended for the client, individual or entity to which it is addressed. These articles contain concepts and opinions, and are not intended to represent the consensus of the insurance or risk community, nor to provide professional legal or tax advice.  Please seek professional legal or tax counsel before making any decisions.  The information provided does not change or modify any insurance policy, only the actual terms of the in-force policies will govern claim settlements.

Are You Prepared For A Major Illness?

Supplemental Plans Offer Needed Benefits

Most Californians don’t like to think about death, accidents or illness, but these are on the top of the list of most of our life concerns. Healthcare reform has caused a shift toward individual awareness and responsibility regarding our health insurance. Healthcare costs are going to increase in the next three years. This will cause many employers to rethink group plans, and therefore may lead individuals to look for healthcare alternatives.

Out-of-pocket costs are increasing at an alarming rate. The national average out-of-pocket cost for a major illness was over $4,000 in 2013. Many individuals also incur lost income during a major illness. There is no question that a major illness also can take an emotional toll on the individual and their family.

Employees can benefit from voluntary insurance benefits solutions offered through their employer.   According to Met life.com, “The benefits landscape is changing significantly due to economic challenges, rising health care costs and health care reform. As a result, employers are adding voluntary benefits to their benefits programs in a big way – with 47% planning to add more voluntary benefits in the next two years.”

Voluntary Benefits Can Include:

• Life
• Dental
• Disability
• Accident & Health

Here are a few thoughts on how to implement voluntary benefits insurance:

• Make sure you offer a variety of benefits.
• Have a written outline and information about enrollment.
• Educate employees about the difference between regular health benefits and voluntary benefits.
• Discuss the financial impact of critical care and long term illness.

Each company has its own circumstances which dictate what would be needed to safeguard the years of hard work in building a successful enterprise. We will guide you through different scenarios to see what effects it would have on your business and what solutions are available. It may be as simple as a Key-Man Policy or funding a Buy-Sell Agreement with Life and Disability Insurance.

Many of the products used are listed in Personal Services.

Does Your Business Need Inland Marine Insurance?

Business Insurance update
Your business insurance covers your personal property, stock, goods, and products while they are at your insured locations. However, if you take that business property offsite, it may need special insurance to be covered. Most modern businesses are highly mobile and frequently interact offsite with goods, products, and supplies from all over the world.
If your business delivers goods to customers or other parties, you want your equipment and products insured while away from your premises. Some examples might include:

1. A manufacture who delivers finished products to customers.
2. A cleaning company that has a van full of equipment.
3. Florists with vans full of flowers for delivery.
4. Contractors who have trucks with specialized equipment

Inland marine insurance can be added to your business insurance policy to cover such risks. It’s designed to cover products in transit, those held over at interim shipping points or various other fixed locations, and other movable properties that are transported from one place to another.

The benefits of our service is to guide you, so can choose the insurance package that best fits your lifestyle. For individuals it might be as simple as getting medical insurance and life insurance for your family. Businesses are a bit more complected when insuring. We can customize business insurance plans to help attract new employees while retaining your current employees.

Roussel Insurance & Financial Services is a recognized leader in the insurance industry. We offer highly competitive insurance rates for both business owners and individual services. With 30 years of experience, we continue to offer our clients exceptional service.

This information is intended for the client, individual or entity to which it is addressed. These articles contain concepts and opinions, and are not intended to represent the consensus of the insurance or risk community, nor to provide professional legal or tax advice.  Please seek professional legal or tax counsel before making any decisions.  The information provided does not change or modify any insurance policy, only the actual terms of the in-force policies will govern claim settlements.