Variations in ‘Named Storm’ Deductibles Make Collecting Evidence Confusing

Last year was a tough one for storms, as the U.S. saw more than $200 billion worth of damage from 17 named storms. This record blew past the previous one, $159 billion in 2005, in part because people have continued to move to coastal areas and property values have increased. Over the years insurance companies have introduced “named storm” deductibles to help balance the risk between policyholders and insurers, but they bring their own issues, such as collecting evidence for coverage and other details. “Catastrophe management can make or break a carrier’s reputation, and having dedicated and knowledgeable staff is key,” says Stacey Giulianti, co-founder and chief legal officer of Florida Peninsula Insurance and Edison Insurance. Here’s what you need to know about “named storm” deductibles. A Variety of Deductible Options The biggest challenge carriers face, especially when explaining named-storm coverage to customers, revolves around the deductible, Giulianti says. “Hurricane” …

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401k Loans: Pros and Cons

You might be considering taking out a loan from your 401k. But before you do, you should know the rules and weigh the risks against the benefits. Because not knowing the rules and understanding the risks might hurt you and your retirement in the long-term. Consider this for a Second Most of us simply do not have enough in our 401k where we can afford to borrow. According to Fidelity Investments, the average 401k balance was approximately $91,000. And while that is a lot of money, it won’t cover the average retiree’s health-care costs. Fidelity projects that a 65-year-old couple retiring in 2014 will incur an average of $220,000 in retirement healthcare costs alone. Before you take out that 401k loan, know this: According to the IRS: the maximum amount that the plan can permit as a loan is (1) the greater of $10,000 or 50% of your vested account …

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A Commercial Umbrella for When It Pours

In our increasingly litigious society, business owners must be prepared for the possibility of lawsuits regardless of company size, location, or industry. A lawsuit could involve large legal fees, plus an award for medical expenses, pain and suffering, or any number of grievances. In addition, negative publicity and lost time resulting from court-related activities can have a substantial impact on your business. A commercial umbrella liability policy can provide protection in million-dollar increments above the required liability limits of your commercial general liability, auto liability, and employers liability (workers compensation) policies. How It Works Umbrella coverage takes effect when the limits of your underlying policies have been exhausted, and may also cover what your current business policies exclude. Typically, a commercial umbrella policy may offer extra protection for legal defense expenses, losses occurring outside the U.S., and personal injury or property damage claims. In addition to covering the named insured, …

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Human Capital is More Valuable to Economies Than Physical Assets

Human capital is more than twice as valuable to the global economy as physical capital, but business leaders often overestimate the value of tangible forms of capital and underestimate the importance of employees to their company’s performance, a study commissioned by executive search firm Korn Ferry has concluded. The report, “The trillion-dollar difference,” outlines the findings of a survey of more than 800 global business leaders that was conducted in August and September 2016, as well as of a global economic analysis that was conducted by the Centre for Economics and Business Research. The report was released on December 15, 2016. To quantify the relative value of human and physical capital, researchers developed a lifetime income calculation for measuring human capital that encompasses the ability of people to perform labor and add productive value over time. Physical capital was measured by the value of tangible means of production (such as …

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