Gary Sorenson - Insurance Brokers of Minnesota

Workers’ Comp is the way employers finance employee injuries. For every dollar the insurance company spends, you are likely to pay back $2.00 to $3.00.  It’s our job to stop the borrowing at such high interest rates. Because Workers’ Comp is so complicated and confusing, employers are left to assume that their premium audit reports are accurate and their Experience Modification Factors are correct.  However, because of mistakes rampant in the Workers’ Compensation system, at least 25 -50% of businesses are overcharged for their Workers’ Comp insurance.

To help employers solve the problem, The Institute of Work Comp Professionals (IWCP) trains, tests and certifies selected insurance agents to help employers. Completing a rigorous workers’ compensation training program, the Certified Work Comp Advisor (CWCA) knows how to find errors and overcharges rampant in Workers’ Compensation accounts that result in immediate cost-savings for employers. That’s just the beginning.  CWCAs’ commitment to ongoing workers’ compensation education means that they know the practical, proven processes that reduce Workers’ Comp expenses over the long-term, making employers more competitive. Over the past ten years, CWCAs have saved businesses millions of dollars in unnecessary Workers’ Compensation expenses. Workers’ Comp is the only insurance over which you have complete cost control. CWCAs have the definitive guide for recovering money you’ve already paid for your Workers’ Comp insurance and then creating an overcharge-free program. Once you understand why errors occur, you can see how easily money is left on the table.

Causes of Errors

1. Not knowing your minimum Experience Modification Factor.
2. Not knowing how much money you’re wasting by not knowing your minimum Experience Mod and not having processes in place to reach it.
3. Misclassifying employees.
4. Injured employees off job too long receiving insurance company money.
5. Lower productivity and mistakes when injured employee is off, and others, less experienced, fill in.
6. Work flow disruptions when an employee is injured.
7. Poor hiring practices put “injury prone” persons on the payroll.
8. Inadequately trained supervisors.
9. Delays in reporting employee injuries.
10. Management and employees not understanding Workers’ Comp, such as when injured employees receive first check when injured, and what you can do about it to swing the odds in your favor.
11. Cost of slow response by medical providers, claims adjusters, employers when an injury occurs.

Look how many people are involved in the WC system, errors are bound to happen.

At Insurance Brokers of MN, we have several people who are certified work comp advisors including myself that can assist you in understanding the workers’ comp experience mod factor mystery and help reduce your workers’ compensation premiums.

• Combines a Premium Reimbursement Account, and a FSA/HSA plan all into one simple-to-use product.

• Employer has ability to offer a “defined contribution” or tax free contributions to an employee for (1) insurance premiums, or (2) out of pocket medical expenses, or (3) both, and provide a (4) pre-tax platform for employees to pay for their out-of-pocket medical, daycare and transportation expenses along with their individual Health Insurance Premiums.

Three Components: 

1. Premium Reimbursement “employer”:  Employer offers tax-free money to the employee in the form of a defined contribution. That money can then be used by the employee for individual health insurance premiums. The amount and eligibility is predetermined by the employer.
2. Premium Reimbursement “employee”:  Employees can contribute tax-free money toward their individual health insurance premiums on an annual basis.
3. FSA and/or HSA Component: Employees can contribute tax-free money to help pay for eligible out-of-pocket medical expenses, dependent care expenses. FSA/HSA plan type offerings are predetermined by the employer. Employer may designate contributions toward these accounts as well.

There is a lot being said about these plans.  To learn more about the program developed by TASC, contact us at Insurance Brokers of MN, Inc. to see if this is maybe an option for you and your employees’ health insurance needs.

Rising life expectancy means that the potential need for “long term care” grows with every passing year of your life. Current statistics indicate that six out of every ten people in the United States will need some form of long term care during their lifetime. Most long term care expenses are not covered by Social Security, Medicare, or private health insurance. Medicaid will pay for some nursing home care, but you must meet state poverty guidelines to qualify; therefore, you may have to “spend down” or gift away your assets to qualify.

The cost of home health care can range from $30,000 to $80,000 per year. The nursing home care or care at an alternate or assisted care living facility may be even greater. Because these costs will not be paid from other sources, your personal assets will be left unprotected and the cost of long term care may substantially reduce or even eliminate your estate. Long term care insurance is one way to eliminate that risk.

By trading off a small known cost now for a long term care insurance policy versus paying personally for care when needed, you can protect your assets and the succession of your estate to your spouse and heirs. This type of protection may also be available for your parents or spouse; in fact, some plans provide discounts for spousal participation. Just like other forms of insurance, premiums can be fixed but are determined by age, so the younger you are when you take out a long term care insurance policy the lower the annual premium.

There are also life insurance policies and annuities on the market that provide a living benefit for long term care.

As an independent insurance agency, we have the ability to survey the marketplace on your behalf and recommend a program that best fulfills you and your family’s needs. Because so many of us are living longer, you owe it to yourself and your family to see how long term care insurance may benefit you.

Policies must be consulted for precise terms and conditions for exact details.

The Obama administration finalized new regulations to expand coverage requirements for employers providing mental health and substance abuse treatment under their group health care plans.

The long-awaited final rules are based on the 2008 Mental Health Parity and Addiction Equity Act. They will prohibit large employers — defined as firms with more than 50 full-time workers — from applying copayments, deductibles and utilization limits for mental health care and substance abuse treatments less favorable to plan members than those they apply to medical and surgical services.

While the final regulations do not expressly require large employers to provide coverage for mental health and addiction treatment services, employers that choose to provide such coverage must ensure it is substantively equal to their group medical benefits within six service classifications, including in- and out-of-network inpatient and outpatient care, emergency treatment and prescription drug services.

Additionally, the final regulations will prohibit employers from using employee-assistance programs to limit or direct mental health care — or requiring employees to exhaust their EAP allowances before they can access mental health care under group health plans — if similar restrictions have not been applied to medical and surgical care.

If you are having default understanding the new health care laws. Join the club LOL!!

Please contact us at IB for assistance.

Here are 21 Reasons to Purchase Deluxe Contents Coverage

The following are covered by deluxe and not standard (put in simple terms):

1) MYSTERIOUS DISAPPEARANCE – Jewelry, furs, silver, gold and guns that are lost or misplaced (up to special limits).

2) EARTHQUAKE – Deluxe contents affords earthquake coverage automatically for contents.

3) BROADER WATER DAMAGE – Damage to contents is covered if rain or hail enters through open window or door.

4) BROADER WIND DAMAGE – Losses due to wind entering an open window or door are covered.

5) CHILD-RELATED DAMAGE – Children running, wrestling or playing in a house can damage TV sets, stereos, furniture, etc.

6) CIGARETTE BURNS – severe scorching and scarring related to cigarettes and cigarette ash.

7) LOSS BY REPAIR – Jewelry, watches, and furs are covered while being refinished, repaired or renovated.

8 ) POWER OUTAGE – Food spoiled and related loss are covered when power fails (other than brown out or black out).

9) BREAKAGE TO “NON-FRAGILE” ITEMS – Jewelry, watches, bronzes, cameras and photographic lenses. *Example: Drop a camera and it breaks. *Example: Mishandle a watch and step on it.

10) DAMAGE BY GUEST – *Example: While you’re entertaining, a guest accidentally tips over a stereo/VCR system ruining it.

11) ENSUING LOSS CAUSED BY PETS – Related water or wind damage. *Example: Pet dog tears through screen door during rain/wind storm and loss ensures.

12) ENSUING LOSS AFTER POWER INTERRUPTION – Any physical loss that follows power failure.

13) SPECIAL WORDING FOR GROUND/SURFACE WATER – Although ground and surface water is excluded, it does cover such incident for contents away from a residence you own. *Example: Rent a beach house for the weekend and tidal waves rise damaging contents.

14) DAMAGE BY SPILLED BEVERAGE/LIQUID – *Example: College student spilling coffee on personal computer and keyboard, forcing replacement.

15) UNEXPECTED INCIDENTS – *Example: Infant wetting an antique sofa. *Example: Stray football thrown inside breaking a TV picture tube.

16) PERSONAL PROPERTY IMPROPERLY STORED – *Example: Numerous suits from dry cleaners in vehicle that goes through car wash with back window open. *Example: Furniture in garage damaged by rain when door not closed.

17) INTERNAL FALLING OBJECTS – Objects that fall within the home. *Example: Crystal chandelier coming loose and crashing onto dining room table, destroying it.

18) DAMAGE BY HOT OBJECT – *Example: Hot plate from the kitchen can shatter a glass table.

19) MOTORIZED VEHICLE FOR USE ON PROPERTY – *Example: Drivable lawn mower can crash into a tree after losing control, forcing replacement.

20) SPECIAL WORDING FOR TEMPERATURE/DAMPNESS LOSS – A loss due to dampness/temperature is covered if the direct cause of loss is rain, snow, or sleet or hail.

21) ACCIDENTS – Many unforeseen accidents are covered. *Example: Spilling liquid shoe polish on an antique chair or Persian rug.

To find out what you have contact your local Insurance Brokers of MN, Inc. agent for a complete review!

Air bags save thousands of lives each year, according to The National Highway Traffic Safety Administration (NHTSA). In frontal crashes, air bags reduce deaths among drivers by about 30 percent and among passengers by 27 percent.

Air bags, however, can be dangerous. If small children sit unbelted in the front seat, they can be catapulted into the path of a deploying air bag, which inflates with great force. This risk also applies to small adults—who must sit close to the steering wheel in order to reach the pedals—pregnant women and the elderly. Infants in rear-facing safety seats on the passenger side can be severely injured because their heads are in the direct path of an inflating air bag. If your airbag is stolen or it deploys, you must get a new one, but you will be reimbursed under the comprehensive portion of your auto insurance policy.

Preventing Air Bag Injuries

Drivers should have all children sit in the backseat wearing a safety belt. Infants should be placed in rear-facing car seats and put in the backseat. Small adults should move the seat back so that their breastbone is at least 10 inches from the air bag cover.

If this is not possible, air bag switches can be installed so that the vehicle owner has the option of turning the bag off or on, depending on the situation. In January 1998, NHTSA allowed auto dealers and repair shops to begin installing air bag cut-off switches. Before the switch can be installed, vehicle owners must complete a four-step process:

1. Obtain an information brochure and request form from NHTSA, dealerships or repair shops
2. Return the form to NHTSA
3. Receive authorization from NHTSA after it reviews the case
4. Take the vehicle to the service shop along with the authorization from NHTSA which certifies that the owner has read the brochure and met one of the four eligibility classifications:
   1. Rear-facing infant seat can be in the front (necessary if the vehicle has no back-seat)
   2. Driver’s seat cannot be adjusted to keep more than 10 inches between the driver and the steering wheel
   3. Putting a child 12 or under in the front seat cannot be avoided
   4. Having a medical condition that puts them at risk of injury when an air bag deploys.

Source: Insurance Information Institute; www.iii.org