Gendelman Insurance Newsletters

Thoughts for a Growing Business

Has your business turned 50? (Not 50 years old, but 50 or more employees!) If it has, you've reached the magic number at which many state and federal regulations suddenly kick in.

Zoe had a housewares retail busi-ness that grew much more quickly than she had expected. When she hired her 50th employee, she found herself overwhelmed with OSHA, EEOC, and other regulations and had to restructure jobs, revise her employee manual, and revamp her application process. As Zoe'c success became more apparent, she was perceived to have deeper pockets, and her business came under greater danger of lawsuits.

When Zoe came to us for Employment Practices Liability insurance, we explained to her that some insurers ask for a detailed personnel practices audit, and won't consider issuing a policy until she can show that all the proper changes are being made. Since her personnel practices were much too informal for her growing company, this required a lot of work and attention. Zoe hired an outside consultant to help her understand her new responsibilities and what she had to do to bring her workplace up to the standards required of a larger business.

We recommend that you look into the new regulations you'll come under if you reach 50, either by doing the research yourself or by hiring a consultant. For the increased insurance coverage you'll need and an explanation of all that it entails, call us.

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Tax Relief for Small Businesses

The Small Case Division of Tax Court can now hear cases involving up to $50,000. The old limit was $10,000.

The Small Case Division works like Small Claims court, and no attorney is required. Its purpose is to enable small businesses to fight unfair tax decisions in cases where leagal fees would be likely to wipe out a favorable decision in regular Tax Court.

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Heard of the MM Problem?

For anyone using Roman numerals, the millennium problem is already here. Nobody seems to know exactly how to write 1999 in Roman numerals MCMXCIX, MDCCCCLXXXXVIIII, or just MIM. Expert opinion seems to side with the first. The third seems odd.

The middle example - the longest - is probably the most authentic, since early Romans did not use subtraction for their numbering system, as we were taught in school. For example, they used VIIII instead of IX for 9.

The Roman system of numbering was used until the 16th century, when Arabic numerals supplanted it. Among the many blessings of the Arabic system: the zero. To the inventors of the zero, we say, "Thanks for nothing!"

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A Smaller Policy for Less Equipment

There's a Boiler & Machinery policy especially designed for certain small businesses. It's limited to air compressors and heating and cooling equipment and not processing equipment. This optional coverage costs less than standard Boiler & Machinery insurance, and can be included in your Businessowners or Commercial General Liability policy.

This coverage is ideal for certain small businesses, such as:

It's not appropriate for manufacturers, processors, laundries, dry cleaners, hospitals, or any business with high pressure boilers.

Although this policy covers only boiler and pressure vessels and air conditioning units, it can be written to include Business Interruption and Extra Expense coverage. Protection against property damage is the same as for the standard policy: It covers accidental loss to your property and any property in your care for which you're legally liable. There are a few other coverages and restrictions, too, so talk to us. We'll let you know whether this coverage is a good choice for your situation.

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Tougher Sexual Harassment Standards for Employers

The U.S. Supreme Court set new standards for employer liability in cases of sexual harassment by supervisors. An employer will be held liable for the sexual harassment of an employee by a supervisor if the harassment.

Our advice:
Have a harassment policy in place, with procedures for employees to lodge complaints. Investigate all complaints thoroughly, take action against supervisors who have been shown to harass employees, and fully investigate the reasons behind any recommendation from a supervisor that an employee be terminated, demoted, or transferred. We also recommend you obtain Employment Practices Liability insurance, which will indemnify you for the expenses of a civil lawsuit brought against you for harassment (and other employment practices).

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OSHA Broadens Its Scope

The Qccupational Safety ann Health Administration (OSHA) is forging new, more stringent rules that will no longer exempt small businesses from certain safety requirements. The new rules, which would affect more than 2 million workplaces, have been blocked by Congress for three years and may take another two years to go into effect.

Some business groups and lawmakers say that more study is needed before new rules are instituted. Some have urged OSHA to wait for the results of a National Academy of Sciences study commissioned by Congress last year, which will not be ready until sometime in 2000.

Some of the new rules apply to lifting by many more classes of employees than currently covered, including office workers. Employers will have to identify potential hazards and work out prevention strategies with employees. If a single injury occurs at the worksite, further rules would cover medical treatment, changes in work practices and shop layout, and training for all employees. If problems continue, further actions would be required.

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Keeping Your Databank Safe as a Bank

Computers are a blessing and a curse. The blessings are obvious; the curse includes the ease with which people can access, damage, or destroy your company's records.

Records may be destroyed by error or a breakdown in the system for instance, a virus, natural disaster, or computer failure. But the worst damage occurs when someone (a disgruntled employee, former business associate, mercenary competitor, or the like) sets out to do harm.

Here are some tips to prevent such destruction:

No security system is foolproof. A Businessowners Special Property policy may cover you for loss of business income and certain extra expenses stemming from direct physical damage to the computer files. Depending on your situation and your policy, you may need extra coverage. See us.

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Year 2000 Update

Y2K and Telecommunications Abroad

Are you feeling confident that most of the A computers running telecommunications in the United States will he Year 200(1 (Y2K) ready by January 1, 2000? don't rest easy yet especially if you do business in foreign countries.

When it comes to telecommunications readiness, Europe lags behind the United States, with South America, much of the Asia/Pacific region (except for Australia), and Africa even further behind, according to recent testimony given at a hearing before the Senate Special Committee On the Year 2000 Technology Problem.

One of the companies testifying was Relleore, a software/engineering firm located in Morristown, NJ. Its spokesperson warned that a general lack of attention to Y2K problems in some parts of the world could adversely affect the ability of U.S. businesses to communicate with them.

On a more promising note, the spokesperson said that U.S. telecommunications manufacturers have reported that most of their equipment is ready to process Year 2000 dates.

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Managing Excellence

There's a saying: "Excellent salespeople are unmanageable." It's not true. Outstanding salespeople, like average ones, need to feel that their managers are interested in their aspirations and productivity. They need you to be several people:

Simply put, good salespeople need to feel that they have your attention that they matter. Don't take them for granted!

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Manufacturers: Don't Get Y2Kayoed!

A survey by the American Supply and Machinery Manufacturers Association (ASMMA) shows that companies with annual revenues lower than $5 million are highly unlikely to have addressed their Year 2000 (Y2K) problems adequately. In addition, 81% of all companies sur-veyed haven't looked into whether their insurance covers Y2K difficulties.

Computer-dependent companies should know what they might be legally liable for if their computer systems go down. For example, would they be liable if their own system causes a problem with a supplier's or cus-tomer's system? Most ASMMA respondents said that they hadn't asked their suppliers and service providers what they're doing about their Y2K problems.

If you're doing nothing to prepare for the Year 2000, take a lesson from the ostrich: A head in the sand leaves another part totally exposed!