WORKERS’ COMPENSATION FACTS

Workers’ compensation insurance provides for the cost of medical care and rehabilitation for injured workers. It also provides for lost wages and death benefits for the dependents of persons killed in work-related accidents. Workers’ compensation systems vary from state to state.

According to a recent study by the U.S. Department of Labor, the highest rate of workplace fatalities was among fishing workers, with 200 deaths per 100,000 full-time employees, followed by logging workers, aircraft pilots and flight engineers, and farmers and ranchers. The all-industry average was 3.3 deaths per 100,000 workers. Transportation-related incidents, including vehicle crashes, were the leading cause of workplace deaths.

10 METHODS FOR IDENTIFYING BUSINESS RISKS

It’s cliché, but risk is everywhere. If you ask a business executive to answer “what is your biggest risk,” you may get 100 different answers from 100 different people.

 

In its simplest form, a risk is a chance of a loss, an uncertainty of loss, a possibility of various outcomes, or the difference between something that is expected versus what actually happens.

In order to know what risks are around your business, you need tools to identify those risks. The following are ten methods you can use to identify risks.

• Checklists and Surveys.
• Flowcharts.
• Insurance Policy Review.
• Physical Inspections.
• Financial Statement Analysis.
• Compliance Review.
• Contract Review.
• Policy and Procedures Review.
• Loss History Review.
• Experts.

KEEP IRS AT BAY: AVOID COMPLACENCY AND AUDIT

“I haven’t ever been audited so I don’t have to worry about it.” Maybe yes. Maybe no. The IRS audits about four percent of self-employed business owners and recently they focused on auditing mom and pop, cash-based businesses such as bars, restaurants, mobile food vendors, construction workers, laundromats, and retail stores.

 

The chances of being audited go down dramatically to .05 if the business is a partnership or S Corporation. Incorporating solely to reduce the risk of an IRS audit is usually not good planning. Consider all favorable and unfavorable facts prior to incorporating.

“So why worry about it?” If you have poor or few records when the tax man cometh, the cost of reconstructing records, of lost time, and of legal and accounting fees will be staggering. Those in business know that it is less expensive to maintain good records than it is to create records from bits and pieces of records that are two or three years old.

Home Inventory

Why a Home Inventory Is Important

 

Let’s try a little exercise: Can you list everything you own from memory?

Didn’t think so.

 

The fact is most people own more things than they realize. It’s easy to remember the cars, the computer, the TV. But what about that holiday china in the garage?  Or every pair of shoes?

 

All of it is regarded as personal property for insurance purposes. And if your home is destroyed by fire or some other disaster, having a list of your possessions makes filing a claim easier — and helps you put your life back together.

 

Why should I complete a home inventory? What’s the best way?

Comparing the value of your belongings to the “contents” limit listed in your policy helps you make sure you have enough insurance to replace them if they are lost, stolen or destroyed as a result of a covered loss. The easiest way to take an inventory is to use a video camera, recording and describing items as you walk through your house. Or, you can use a regular camera and create a home inventory checklist.

 

Here are a few tips for completing and storing your inventory:

Add brand names and descriptions where you can, especially on large-ticket items. Serial numbers are helpful to note.

Keep any receipts you have with the list to make the claims process easier.

Store your video or photo inventory offsite so you won’t lose it if your house is damaged.

Update your personal property records when you purchase new furnishings and valuables.

Though the task may seem daunting, it’s important to try. An incomplete inventory is better than nothing at all.

 

How much insurance do I need?

We can assist you in analyzing your insurance needs and help you decide how to most effectively protect your personal property. You should consider full-value coverage, which will pay for the replacement value of your personal belongings. A standard policy typically covers personal property only up to its actual cash value, determined by taking the replacement cost and deducting depreciation, which can be substantial. (For example, a 5-year-old TV is usually worth much less than what it would cost to purchase a new one.)

 

Finally, remember your homeowners policy covers valuable items such as jewelry, furs, art and antiques, only up to set dollar amounts. If the cost of replacing them exceeds these limits, you may want to purchase scheduled personal property coverage.

 

The Insurance Information Institute has a FREE online tool that can help you create your inventory. Just visit www.knowyourstuff.org for more details.

 

We hope you’ll never need the home inventory, but preparing for the worst can prevent a lot of hassle later!