At home and in the workforce, long term care is emerging as one of the critical issues of our times.

Did you know you can add long term care insurance as a valuable part of your company’s employee benefits package? Long term care insurance offers you an excellent opportunity to reward and retain your key executives, and help secure uninterrupted productivity.

Tax-qualified long term care insurance occupies a special place in the tax code. There are not many insurance products with as many tax advantages as tax-qualified long term care insurance.

Seldom does an executive benefit plan come along which offers so many advantages. This plan can be customized to fit an employer’s specific criteria, and it might offer a tax deduction for the employer without creating additional taxable income for the employee.

Long term care insurance is one of the newest employee benefits being made available to employees by businesses to attract and retain top performers, and is a valuable addition to any benefits’ portfolio. Benefits may also be offered selectively. For example, the employer can elect to include employees above a certain level, who have been employed by the employer for a specified number of years. Employers may also select or carve out groups of employees to receive different premium contributions, or coverage may be offered to all employees on a voluntary basis. By extending coverage to family members, employers also make it easier for workers to manage care giving responsibilities and remain productive on the job.

Long term care insurance helps protect the value of retirement savings, which could be used up very quickly paying for long term care. Offering long term care insurance can help employees feel more secure about their future and feel better that they have planned for that future.

(The Health Insurance portability and Accountability Act of 1996 (HIPAA), which became effective January 1, 1997, allows for favorable federal income tax treatment for long term care insurance policies that are tax qualified. This legislation enables employers to provide long term care insurance to key executives, spouses, parents, or themselves on a favorable tax basis)

Genworth Financial

WHY LONG TERM CARE MAY BE A SERIOUS MATTER FOR YOU AND YOUR EMPLOYEES
A Look At Today’s Working Caregivers:

In one important study done by the MetLife Mature Market Institute (1), those surveyed said they made at least one formal adjustment to their work schedule as a result of caring for a partner or other family member:

16% quit their job
20% cut back to part-time
22% took a leave of absence.

They also stated that caregiving affected their ability to advance on the job.

29% passed up a promotion, training or assignment
25% passed up an opportunity for job transfer or job relocation
22% were unable to acquire new job skills

What do these numbers mean for you? Chances are one or more of your employees is facing long-term care issues right now. They’re acutely aware of what long-term care costs can do to lifetime savings and are looking for a way to help protect their own futures.

FACING YOUR EMPLOYEES’ CONCERNS

A survey (2) of attitudes about long-term care reports:

86% of those surveyed think providing long-term care is a big problem
82% think it is irresponsible not to plan for one’s own long-term care needs
76% say the cost of long-term care would significantly reduce their retirement income and assets
67% believe the cost of long-term care is the greatest risk to their standard of living during retirement
Only 12% have made financial preparations for their long term care needs

HOW CAN YOU HELP

The costs associated with long-term care may put every employee in your organization at risk one day. You can lessen the risk right now by educating and encouraging them to plan ahead and making affordable long-term care protection available to them is a big step in the right direction.

1.MetLife Mature Market Institute, “MetLife Juggling Act Study: Balancing care giving with work and the costs involved,” 1999.
2.CNN Custom News, “Long-Term Care Generation Gap Sacrifice to Care for Parents Despite Elder’s Wishes,” 3/23/99.

Your Christmas List For Protecting Valuable Gifts

by DeeDee Wade

It’s the holiday season and time to think about gift giving. Protecting newly purchased valuables, especially fragile and expensive works of art, antiques or collectibles, can be particularly challenging. Here are some tips that may help ensure that when you ship or store valuables they will remain intact and you avoid an insurance claim.

1. If sending a large item and it must be shipped, hire expert movers. Most people check references and ask if their mover has experience in packing and moving specific types of objects. Unfortunate people often fail to inquire if their mover will transport their possessions on climate-controlled trucks with air-ride shock absorbers that minimize road vibration. Depending on the type of valuable you are moving, these factors may be very important.
2. Make sure the shipper packs the item. In most cases, moving companies are liable only for items they pack.
3. If you purchase art and furniture, check all objects for damage and repair them prior to shipping or storing.
4. Handle object carefully. Small or light objects may be moved around your home in a padded tray or basket. Lift larger items or furniture by the base or body, never by handles, limbs or legs. Framed artwork should be moved in a vertical position by handling a secure area of the frame. Take special precautions to avoid touching the front or back surfaces of a painting or drawing.
5. Determine appropriate shipping containers. Many valuable items should not be packed in cardboard cartons. Museum-quality crates should be specifically constructed for each item. These crates are shock-absorbent, water-resistant and tamperproof.
6. Select appropriate packing materials. Wrap small objects and sculptures in acid-free paper, not newsprint. Tape the wrapping closed so it doesn’t ravel. Fill in the crate or carton with packing material to prevent damage during shipping. You can find these at local packaging stores.
7. If you store a valuable item, keep it in a safe place. Like your movers, the warehouse you select should specialize in antique and fine arts storage. The facility needs to offer a high level of security, fire protection and water protection and should be well maintained. A musty warehouse may indicate mold, mildew or fungus. Make sure that loading dock doors are protected and motion sensors are installed. In addition, guests should be required to sign in and out and should have a computerized inventory system.
8. Check insurance coverage. The liability of movers is often quite limited. Find out what type of insurance they carry by requesting a certificate of insurance. Prior to your move, check with your agent and broker to find out if your homeowners or other insurance policies cover “goods in transit.”
9. While in your possession, you may want to specifically schedule this item with your insurance carrier for peace of mind. With this agreed-value approach, you receive the itemized amount with no deductible or depreciation in the event of a total covered loss up to the amount of itemized coverage for that category of valuable articles. Depending on the carrier, you may receive worldwide coverage on these items and will receive mysterious disappearance protection.
10. Finally, the best way to ensure the safe arrival of valuable art antiques and jewelry, you should always use a specialty shipper such as FedEx White Glove Service and AIT Worldwide.

Many people don’t fully understand specific insurance issues. That’s why in a world of insurance red tape, consider us your scissors.
DeeDee Wade is vice president at Wade & Egbert Insurance Partners. She can be reached at deedeewade@wade-egbert.com.

Umbrella & Excess Policies
How much do you have at risk?

by DeeDee Wade

You don't have to be a millionaire to be sued like one. The fact is; a single lawsuit - even if you win - can end up costing hundreds of thousands of dollars. And the greater your assets, the more you potentially have at risk. Think about some of these possible scenarios.

• As you turn a corner in your car, you accidentally injure a successful entrepreneur in the crosswalk. Medical costs, lost earnings and damages amount to millions. You are responsible.
• A guest at your son's pool party — a 16-year-old boy — dives unknowingly (and unwarned) into the shallow end of your pool, and suffers devastating paralysis and injuries. You are responsible.
• You're having a wide-screen television delivered to your home, and one of deliverymen slips and falls on your icy steps and breaks his leg. You are responsible.
• You volunteer on the board of directors of your condominium association. The board installs a playground with a faulty swing and a fellow association members’ child is injured. You are sued as a board member.

All of these situations could result in a judgment greater than your underlying personal liability limits and this is where your personal umbrella or excess liability policy comes into play. So first of all, what is the difference between a personal umbrella policy and an excess liability policy?

In theory, an "Excess Liability" policy is distinguished from an "Umbrella" policy in that the umbrella policy affords excess liability coverage and applies to certain areas that are not covered by underlying policies. Generally, excess liability coverage is not broader than the underlying primary coverage. That said, both policies serve a purpose and the excess policy may be just as good as the umbrella policy if your insurance carrier has broad underlying limits. This is a situation where it is important to check with your agent and make sure you have all the necessary liability coverage.

Here are some important points to consider when purchasing a personal Umbrella policy:

• Does the policy cover you for personal injury coverage? This coverage can apply if you are responsible for someone being injured on your property, and if you are sued for libel, slander or negligent infliction of emotional distress.
• If you serve on a board does the policy cover not-for-profit directors and officers coverage? This coverage can respond if you are sued for personal injury or property damage resulting from your volunteer service on the board of a not-for-profit corporation or organization.
• Is Uninsured/Underinsured motorist protection available under this policy? If you are injured by an uninsured or underinsured motorist in the U.S. or Canada - or if you suffer property damage from an uninsured driver - this optional coverage could apply. It is always a good idea to ask your agent if this coverage is available for you.
• If you travel outside the U.S., is worldwide automobile rental something you would need? Rent a car on vacation or business - anywhere in the world - and some carriers will automatically cover you for personal injury or property damage for up to 90 days.
• Does your policy cover defense costs? If the circumstances of a lawsuit are covered, see if your policy covers you for legal defense costs and provides access to legal counsel.

Many people don’t fully understand specific insurance issues. That’s why in a world of insurance red tape, consider us your scissors.
DeeDee Wade is vice president at Wade & Egbert Insurance Partners. She can be reached at deedeewade@wade-egbert.com.

Identity Theft Restoration Insurance

by DeeDee Wade

• Lost wages as a result of time taken off work to deal with fraud
• Notary and certified mail charges for completing and delivering fraud affidavits
• Fees to re-apply for loans that were denied as a result of the theft
• Long distance telephone charges for calling merchants, law enforcement agencies or credit grantors to discuss the theft
• Attorney fees incurred, with your carrier’s prior consent, for:
  • Defending suits brought incorrectly by merchants or collection agencies
  • Removing criminal or civil judgments wrongly entered against the victim
  • Challenging information in a credit report
• Additional coverage for spouse, family, a lost wages enhancement of up to a certain amount depending on the carrier
  

Through the Identity Theft Recovery Unity, Intersections perform the following to assist the victim:

• Obtains a 3-in-1 credit report
• Documents event and history with the victim
• Assists in placing fraud alerts with major credit reporting agencies
• Provides contact information for future calls
• Completes dispute letters on the victim’s behalf
• Enrolls the victim in 6-months of daily credit monitoring
• Provides a Fraud First Aid Kit which includes tips, credit reporting agency information and history tracking template
• Pre-populated letters to creditors.

Many people don’t fully understand specific insurance issues. That’s why in a world of insurance red tape, consider us your scissors.
DeeDee Wade is vice president at Wade & Egbert Insurance Partners. She can be reached at deedeewade@wade-egbert.com.
We would like to thank Chubb, Travelers and Firemans Fund for providing data and information on this topic.

Commercial Insurance
Minimize Your Company’s Exposure

by Bill Egbert

Commercial insurance plays an important role in the success of any business by insulating the business from risk and protecting its financial position. A sound insurance and risk management program enables businesses to move forward with plans for growth and development in an uncertain world.

When companies review their Commercial Liability Exposure, there are several areas that are overlooked. That can become a serious risk for any business. A Commercial General Liability Policy covers bodily injury and property damage. But what about the intangible risks of neglect, errors and omissions or even discrimination and harassment?

In reviewing your commercial liability policy, be sure and check into Employee Benefits Liability (EBL) and Employment-Related Practices Liability (EPL) coverage to see if it’s something you need to add to reduce your exposure. (Note: coverage may vary by insurance carrier).

EBL is designed to insure your company against negligent acts, errors or omissions committed by you or any person whose acts you are legally responsible for while engaging in the administration of your company’s benefit plans. EBL protects the insured employer against claims by employees or former employees resulting from negligent acts or omissions in the administration of the insured’s employee benefits program.

The term “employee benefits program” is defined to include group life insurance, group accident and/or health insurance, profit sharing plans, employee stock subscription plans, workers’ compensation, unemployment insurance, social security benefits, disability benefits, etc. Coverage is intended to extend to the “administration” of these plans including counseling employees, interpreting employee benefits programs, handling records and enrolling/terminating/canceling employees in specified plans on a timely basis.

An example of EBL coverage would be forgetting to offer an employee COBRA insurance coverage at the time they leave your organization. You could be held liable for this and EBL coverage would apply here.

EPL is designed to protect against lawsuits by employees against employers for wrongful employment practices. Such claims include allegations of wrongful refusal to hire, wrongful termination, sexual harassment or discrimination based on age, race, ethnicity or disability as well as other specified employment related exposures.

This policy also responds to claims by employees for retaliation against workers for participating in legally protected activity. EPL does not cover bodily injury or property damage, but responds to employees’ economic losses as well as mental anguish. EPL is gaining in popularity both within and outside the U.S. Third Party EPL and Punitive Damages Coverage are also important to consider with this coverage. (State Specific).

Many people don’t fully understand specific insurance issues. That’s why in a world of insurance red tape, consider us your scissors.
Bill Egbert is executive vice president at Wade & Egbert Insurance Partners. He can be reached at billegbert@wade-egbert.com.

A typical homeowners policy provides only up to $1,000 worth of coverage for certain kinds of valuables, such as jewelry, silver and furs. If you own antiques, they may be covered only for their cash value — which is depreciated because they are over 25 years old - even though they may have appreciated significantly. Breakage for fragile items is restricted under most homeowners policies, so your fine china and crystal, among many other very valuable and very breakable items would not normally be covered.

For these reasons and many others, you may need a special Valuable Articles Policy to protect the items you treasure. Through Chubb Insurance, we offer:

• Coverage for an agreed value
• Worldwide coverage
• Breakage coverage
• Newly acquired coverage (up to $50,000 for up to 90 days)
• Broad pair and set coverage (replace the entire pair/set if one item is lost)
• Easy scheduling (appraisals required only for fine art worth more than $100,000, jewelry items worth more than $50,000 and any other type of item valued at more than $25,000)
• Itemized or blanket coverage available

People sometimes neglect to schedule insurance coverage for their fine jewelry because they believe it’s already covered under their homeowners policy, or the coverage is too expensive. Neither of these reasons are true in most cases. Jewelry coverage from Chubb is actually very reasonably priced.

If you’ve spent years creating a wine collection, you know how important it is to protect your investment from the dangers of heat and light. No doubt, you keep your wine safe in a wine cellar or other climate-controlled area. It’s just as important to protect it from ‘all risks,’ like fire, theft and breakage with special insurance coverage from Chubb.

This website provides a basic summary of the insurance products offered by Wade & Egbert. It is not a statement of contract and coverage may not apply in all areas. For a complete description of coverage, please read the insurance policy, including all endorsements.