A Day in the Life of an Auto Dealer

It is a brisk fall morning, the sun is not up; I head to meet a client that was taking me on a field trip to the auto auction. His first question to me was, “Why do you want to do this?” My response was, we insure a ton of used car dealers both wholesale and retail and I want to be able to understand their challenges and struggles so that I can help them make better decisions for their business.

We drove over 2 hours in bumper to bumper traffic up 695 to 83 to the largest auto auction at Manheim PA. I was in Aww of the number of vehicles and dealers already there. The auto dealers all were hoping to score a great deal by the end of the day. As we walked in the building at 9:00 the auction was in full bustle, all of the dealers are using kiosks to get their auction id badge for the day and register. The cars are already lined up into the auction lines and bidding has begun. The free apples to get your day started were a nice little wake me up. Many of the dealers had been on the road for hours before the auction. Some of the dealers fly in and Manheim arranges to provide them transportation to and from their hotel.
As we walk out on the auction floor, the hustle and bustle overwhelms you. There are 33 lines of cars that are 5 to 6 deep in each line. What seemed liked, thousands of dealers all searching for the best deal of the day. Some dealers were very specific in their requirements, looking for a specific make, model or color. Others were just looking for a deal and others were looking for anything they thought would sell at their lot. Some dealers buy from certain wholesalers and follow their lines; other dealers are running back and forth from one side to the other looking for whatever spot their eye.

The technology that is involved in the deal making process is amazing. They use their phones to scan the serial number and then it gives them the CARFAX report and the value that the car is reselling for. In 30 seconds, a dealer can have all the information that they need on an account in their hands. Dealers are on the phone asking someone else for advice; other dealers are on the internet bidding on cars in real time. The car keeps moving up the line, dealers are opening doors, popping hoods, opening hatches to get the best look of the overall vehicle. Checking out the interior, the color, the condition of the body for rust and other dents is done by the dealer in the 2 ½ minutes it takes from the time the car got in line till the bidding process begins.

I quickly learned when in the bidding line, don’t scratch your nose, nod your head or raise your hand unless you want to buy that car. I made sure that I did not make any sudden movements as the bidding started. Certainly, I did not want to be responsible for buying a car, even though my husband would not mind if I would have brought him home a Dodge Charger. Sometimes, the vehicle was pulled out of the garage and the bidding was still going on. Also, you need to make sure that you are not bidding against the auction, they will sometimes go up just to make you think someone else is bidding, so you need to be careful and watch the monitor.

At the end of our day, the dealer walked away with 5 nice cars, he separated the buy sheets and put them in a yellow envelope for a transporter he hired to take them back to his lot. Some people brought trailers to carry the cars, other had employees or friends with them to drive the cars back. Others hired transporters or towing companies to bring vehicles.

Watching the events unfold during the day, I realized a few things. One the dealership is like an assembly line there are thousands of moving parts that all work together. Secondly, watch where you walk, you will be run over. Third, I am glad to be women, the only place with a public bathroom that did not have a line in the ladies room.

Huff Insurance is a full service Independent Insurance Agent We have been dedicated to Protecting Lifestyles™ since 1960. We offer a full array of Personal Insurance, Commercial Insurance and Life Insurance & Health Insurance products. Call us at 410-647-111

Cyber Security – Protect Your Data

More than 100 million personal data records could fall into the hands of hackers this year (Based on 2014 figured from IDTheftCenter.org)  It’s an alarming number, and if 2014 is anything to go by, 80,000 of those records will have been stolen from businesses.

What’s really worrying is that, looking down the running list of compromised records (at IDTheftCenter.org) , many of them come from organizations like yours and mine, not the big names we always read in the headlines.

The hard truth is that none of us is totally safe from data breaches either from outside hackers or inside jobs such as careless, disgruntled or disloyal employees. Even a lost or stolen laptop could result in a devastating loss.

But there’s a lot you can do to secure those records.

An article on Forbes.com summarizes these nicely:

• Always storing data in encrypted format
• Using multiple levels of password protection and changing passwords frequently
• Running background checks on employees who handle customer data
• Using security software and firewalls on servers and workstations
• Implementing a standard security health check on your network
• Having a disaster plan in place in case a breach occurs
• Having your attorney update your terms and conditions to hold you harmless in the event of a breach (although that still won’t stop anyone suing you and you losing that suit).

If you are interested in checking your business IT security health, software security firm AVG has a free, 17-step health-check that you’ll find at https://tinyurl.com/AVG-check-1

If the worst happens, you should always have a powerful backstop in the form of Cyber Liability Insurance / Data Breach Insurance. This can either be part of (or an endorsement to) your Business Owners Insurance Policy or a separate policy.

It can cover not just the lawsuits you might face as a result of an incident but also the costs of rectifying the breach, business interruption and even making good on the inevitable damage to your reputation you would suffer.

Even when you have data breach insurance, it’s always a good idea to keep your insurance coverage under review. Technology is a swiftly-moving force that can change the risks and costs associated with security almost overnight.

Why not schedule a meeting with one of our trusted agents in the next few weeks so we can ensure you’re adequately protected?

Huff Insurance is a full service Independent Insurance Agent We have been dedicated to Protecting Lifestyles™ since 1960. We offer a full array of Personal Insurance, Commercial Insurance and Life Insurance & Health Insurance products. Call us at 410-647-111

Check Out These 4 Key Rules to Food Safety

Food poisoning sends more than 100,000 Americans and Canadians to hospital emergency rooms every year. As if that wasn’t bad enough, it can have long term health consequences for some victims.

And, of course, it can hit your pocket if a guest happens to have suffered their poisoning as a result of your cooking and decides to make you pay for it!

September is actually Food Safety Month, so I thought I’d take the opportunity to run through a few basics about food hygiene that should help keep you, your family and guests out of trouble (and out of the emergency room).

In fact, there are just four simple rules that govern most food preparation and storage activities:

1. Clean: Wash surfaces often; wash hands for 20 seconds with soap and running water; wash surfaces and utensils after every use; wash fruits and vegetables but not meat or eggs. Bagged produce marked “pre-washed” doesn’t need a further washing.
2. Separate: To avoid cross-contamination use separate cutting boards and plates for produce and for  meats/seafood/eggs; keep meat, poultry, seafood and eggs separate from all other foods at the supermarket and in the fridge
3. Cook: Use a thermometer to cook foods to the correct temperature (check here for a chart of minimum temperatures: https://tinyurl.com/foodsafe-temps); keep food hot, at 140F, after cooking; microwave food thoroughly to 165F or higher to kill harmful bacteria.
4. Chill: Refrigerate perishable food within two hours (one hour if the surrounding temperature is about 90F); never thaw or marinate foods on the counter; know when to throw out leftovers and other refrigerated and frozen foods (see this storage chart: https://tinyurl.com/foodsafe-storage)

 

I hope you find these basic tips useful. And if you’d like to know more about Food Safety Month, visit foodsafetymonth.com.

Another useful site for more tips and information on what to do in an emergency can be found at foodsafety.gov

And, if the worst happens, are you protected against potential medical and compensation costs if a guest falls victim? Answer: Mostly yes if you have comprehensive homeowners Insurance or renters insurance.

But why not check in with me when you have a moment so we can quickly review your insurance coverage or answer any other insurance questions you have?

Huff Insurance is a full service Independent Insurance Agent We have been dedicated to Protecting Lifestyles™ since 1960. We offer a full array of Personal Insurance, Commercial Insurance and Life Insurance & Health Insurance products. Call us at 410-647-111

The commercial insurance market can often be a difficult place for contractors. The insurance industry goes through market cycles; companies that are eager to insure contractors today may have no desire to do so when their losses mount and the market tightens. Because of this uncertainty, larger contractors often consider alternative markets for financing their risks of loss. One alternative is a captive insurance company, which is created and owned by one or more non-insurance companies to insure the owners’ loss exposures. Other options include self-insurance (paying losses out of pocket) and insurance options such as dividend plans, large deductible plans, retrospective rating plans, risk retention groups and purchasing groups.

According to Business Insurance magazine, there were more than 5,200 captive insurance companies operating in 2008, falling into several types. Single parent captives are owned by one company. Group and association captives are owned by multiple entities. For example, groups of contractors could form captives to insure themselves and others. Businesses that cannot afford the capital requirements of a captive can “rent” one from an insurance company or reinsurer, allowing them to share in the risks and the profits. Captives often use what is called a “fronting” mechanism, where an insurance company or reinsurer issues and administers the policies and handles the claims, and the insured businesses pay for the losses. Captives may insure the risks of their major owners only, or they may also insure other organizations.

Large companies may choose to self-insure; groups of companies in particular industries may band together to self-insure the risks of the group. For example, in some states groups of contractors have formed trusts to self-insure for workers’ compensation losses. Companies may also choose to partially self-insure by purchasing a large deductible program (one with a deductible of $100,000 or greater per occurrence) for workers’ compensation. Retrospective rating plans, while still insurance policies, are closer to self-insurance in that the final premium includes the amount of the business’ losses during the policy term, subject to a minimum and maximum. Dividend plans are types of insurance policies that typically offer the business the chance of receiving a portion of the premium back via a dividend should losses fall below a specified level. Risk retention groups are groups of businesses in the same industry that have created an insurance company for liability coverage. Purchasing groups are groups in the same industry who band together to buy liability insurance from one insurance company.

Each alternative has advantages and disadvantages. Captives may offer tax advantages, they cut out the portion of the premium spent on insurance company overhead and profit, and they give the owners control over risk management. However, they must meet large capital requirements to comply with state laws, and fronting arrangements still require insurance company involvement. Self-insurance, large deductible and retrospective plans reduce premium costs, give businesses some control over their loss costs, and provide incentives for safe operations, but they can also be a drain on cash flow and their ultimate costs may be hard to predict. Contractors that can predict their future losses with reasonable accuracy may find these plans advantageous.

Since all of these options require contractors to finance at least some losses themselves, they should have access to significant financial resources before using any of them. Also, the options can be complex; a contractor should consult with a professional insurance agent to investigate each option’s implications for the business. Traditional contractors insurance is no longer the only financial protection option available to contractors, but it would be unwise to jump into an alternative without learning the facts.

Huff Insurance is a full service Independent Insurance Agent We have been dedicated to Protecting Lifestyles™ since 1960. We offer a full array of Personal Insurance, Commercial Insurance and Life Insurance & Health Insurance products. Call us at 410-647-111

What can be done to get injured workers back to work faster?

Workers’ compensation insurance premiums represent a major personnel expense for most organizations. Injuries that cause employees to miss work are especially costly, in terms of both lost wage compensation and lost productivity. Also, the longer a worker is disabled and unable to work, the more his future earning power decreases and the more likely it becomes that he will hire an attorney. For these reasons, it is advantageous to both employers and employees to get injured workers back to work as soon as possible. As a result, many employers have implemented return to work programs.

Under a return to work program, the injured employee performs a different job while receiving his prior level of pay. The new job should be matched to his current physical capability, reflecting his state of recovery from the injury. To succeed, this requires a good working relationship between the employer and treating physician. The employer needs accurate information as to the tasks the worker can safely perform; otherwise, the result may be a second, more severe injury. If the worker’s physician will not cooperate or provide a realistic estimate, the employer or insurance company may have to require a physical examination by an independent physician.

A return to work program should be one piece of a comprehensive and coordinated loss management program.

The elements of a return to work program should include:

• Immediate reporting and investigation of accidents
• Arrangement of primary medical care
• Return to work program
• Regular communications with the injured worker

To assist in the arrangement of primary care, the employer should provide the treating physician with job descriptions that explain each job’s physical tasks in detail. Meetings with the physician to explain the nature of the employer’s operation will help match a job to the worker’s capabilities. Communications between the physician and the employer are vitally important.

The employer may want to arrange for direct reports from the physician or regular reports delivered by the employee. The ideal situation is one where the employee can assume light duties without missing any time. Barring that, limiting lost time to a week or two will still keep the claim’s cost down, resulting in premium savings for the employer.

The experience modification formula, which adjusts the premium based on loss history, gives the most weight to losses of $5,000 or less. Getting the injured worker back on the job quickly will help keep the loss well under that limit. Since losses remain in the calculation for three years, the effect of holding down claim costs is long lasting.

 

Of course, return to work programs have pros and cons. The pros include:

• Limiting or eliminating lost work time
• Keeping the worker involved in the work environment
• Eliminating the need to locate, hire and train a replacement
• Increasing the chances of success should the worker refuse the new duties and sue for lost wage benefits, since the employer can show that it made a reasonable job offer

Among the cons are:

• The employer will pay the employee’s full wage for reduced productivity
• An employee with a bad attitude about his alternative duties could lower morale among the other employees
• If the alternative arrangement does not work out, returning the employee to lost wage benefits will wipe out any cost savings

While individual cases might not produce the desired results, employers should realize long-term savings by implementing return to work programs to help get injured workers back to work faster..

Beyond the verifiable dollar savings, return to work programs can give the employer a more stable, happier workforce and a good reputation with potential employees.

Huff Insurance is a full service Independent Insurance Agent We have been dedicated to Protecting Lifestyles™ since 1960. We offer a full array of Personal Insurance, Commercial Insurance and Life Insurance & Health Insurance products. Call us at 410-647-111

Safety Tips For Students On College Campus

Is someone you know about to join the 21 million students attending American colleges in the coming semester? If so, do they know the rules about campus safety? These days, knowing the risks and staying safe is a bigger concern than ever.

Security falls into two basic categories: personal safety and protection of property. Although personal safety is the more important, 80 percent of all campus crimes are property related.

Most colleges have their own campus safety policies and guides but the basics that all students should be aware of include the following:

• Keep apartment or dorm windows and doors locked at all times and don’t allow strangers to follow into residence blocks.
• Park cars in well-lit areas and keep them locked. Don’t leave valuables inside.
• Bicycle owners should use a strong lock, and chain the bike to a sturdy fixed point.
• When going out, let someone know where you’re going and when you expect to return. It’s safer to go out with someone else.
• At night, wear reflective clothing and carry your cellphone, making sure it’s fully charged before you leave.

I found scores more useful tips on the following website: https://www.protection1.com/campus-safety/. They’re actually produced by a private security firm but you don’t have to register or buy anything to use them.

As a matter of fact, next month, September, is National Campus Safety Awareness Month (see https://clerycenter.org/national-campus-safety-awareness-month), so there’s no better time to ensure the students in your family, even those who have been at college for some time, learn about and understand the risks.

There’s one other important related issue I wanted to raise with you — the question of insurance for students and the extent to which existing family policies might protect them, or where they might need additional insurance protection.

If this affects someone in your family, please get in touch (or get the relevant person to contact me) urgently so we can get things resolved before they start the new semester.

Huff Insurance is a full service Independent Insurance Agent We have been dedicated to Protecting Lifestyles™ since 1960. We offer a full array of Personal Insurance, Commercial Insurance and Life Insurance & Health Insurance products. Call us at 410-647-111

In the current economic environment, competition for jobs is intense. There may be dozens of candidates for each job opening, and hiring companies will have their pick. Even in times like these, however, employers must be vigilant about obeying the law when they make hiring decisions. Charges of illegal discrimination in hiring may become more likely during a tough job market. It is essential that employers follow federal and state laws that regulate what factors they may consider in the hiring process. Those who focus on the wrong things may find themselves the targets of government inquiries.

Several federal laws address discrimination in hiring:

• The Age Discrimination in Employment Act prohibits an employer from refusing to hire, firing, or otherwise discriminating against employees age 40 or older, solely on the basis of age. For example, it is illegal for an employer to offer a benefit such as vision insurance to younger workers but not to older ones.
• The Americans With Disabilities Act of 1990 forbids discrimination against disabled workers or job applicants. Under this law, an employer cannot refuse to hire a person who has difficulty walking solely on that basis; the employer must have another, legitimate reason.
• The Civil Rights Act of 1964 prohibits discrimination on the basis of race, color, national origin, religion, sex, pregnancy, sex stereotyping, and sexual harassment of workers. Decades ago, an employer could fire a woman for becoming pregnant. The Civil Rights Act outlawed such actions.

Although these laws have been in effect for several years, some employers still try to get around them. In 2008, the federal Equal Employment Opportunity Commission leveled penalties against employers in the amount of $83 million for age discrimination; $57 million for discrimination against disabled workers; $12 million for discrimination against pregnant women; $79 million for race discrimination; $109 million for sex discrimination; and $25 million for discrimination on the basis of national origin.

What are valid considerations for an employer to use in hiring decisions? Instead of focusing on an applicant’s age, the employer should look at her track record of performance, accomplishments and continuous learning. Rather than assuming that she won’t work at a fast rate or will be slow to adopt new technology, the employer should find out through job simulations, reference checking, and testing. Instead of looking at an applicant’s disabilities (difficulty walking, for instance), the employer should look at his job skills, such as ability to calm angry customers and quickly troubleshoot problems. Rather than ask an applicant whether she is a Christian or a Wicca or an adherent of any other religion, ask what she did to generate leads and close sales when the economy slipped into recession.

Prior to conducting interviews, employers should review with all involved personnel the legal restrictions on what they may ask or say when speaking with applicants. If necessary, training on effective and legal interviewing techniques should be given to these employees beforehand. It should be emphasized that interviewers need to focus on the tasks involved in the job and the applicant’s ability to perform them.

No matter how much preparation and training an employer does, things can still go wrong. It is important that businesses carry employment practices liability insurance from a financially strong insurance company. A good insurance agent can obtain multiple coverage quotes, give advice on the various coverage features, and discuss the claims-handling performance of different companies.

Hiring new employees is always a difficult and uncertain proposition. Finding the right person for the job can be tricky. Complying with legal parameters can be trickier, but it is essential. By avoiding illegally discriminatory practices, employers can build a strong workforce and stay out of regulators’ cross hairs.

And remember if you find yourself in the middle if a lawsuit that involves your company’s hiring practices, it is not covered by your general liability insurance policy.  In order to have coverage for these types of lawsuits, you will need to have an Employment Practices Liability Insurance (EPLI) policy.

Huff Insurance is a full service Independent Insurance Agent We have been dedicated to Protecting Lifestyles™ since 1960. We offer a full array of Personal Insurance, Commercial Insurance and Life Insurance & Health Insurance products. Call us at 410-647-111

Do You Have a Dress Code For Your Business?

As the manager of a business, you want to focus on those things that drive success – productivity, innovation, performance, and strategy. As you work to grow the business, you probably do not want to deal with more mundane office matters. Sometimes, however, these issues can have a major impact on employee morale, and they must be handled well.

One such issue is the employee dress code. It would be nice if all employees used common sense every day and wore tasteful, professional clothing. Taste and professionalism, however, can be in the eye of the beholder. It is likely that your organization needs some kind of guidance on appropriate dress.

If the organization has an employee handbook, it probably has a section on acceptable dress for the workplace. So ask yourself these question with regard to your company’s dress code:

• Is the policy too vague to be useful or overly specific?
• Does it comply with legal requirements?
• Does it require dress that is more formal than necessary given the amount of customer contact employees have?
• Does it allow clothing that is too informal for regular customer contact?

If the answer to any of these questions is yes, consider updating your company dress code. If not, make sure that you are enforcing it. Also, it may be wise to periodically remind employees of the dress code policy. This will inform new employees and reinforce the policy with veterans.

In order to avoid tension in the workplace or even lawsuits, you should enforce the dress code without partiality. Individuals and groups of employees should be treated equally. Federal employment laws and regulations permit employers to set employee dress codes and to treat men and women differently within social norms. It is acceptable to require men to cut their hair while not making the same demand of women. It may not be acceptable to require women to wear skirts or men to wear uniforms while not making equivalent demands of the other sex.

Be aware that federal and state laws protect employees from discrimination on the basis of religion. Employers must make reasonable accommodations to employees who want to dress a certain way for religious observance reasons.

Some men may cover their heads or wear beards for this reason; women may wear clothing that almost completely covers them up; employees of both sexes may wear certain pieces of jewelry. Unless complying with these requests would pose an undue hardship for the organization, the employees’ wishes must be honored. Employers may refuse such requests if the clothing or style creates a safety hazard; in most other cases, they must make the accommodation.

On the other hand, the law does not require employers to allow workers to display tattoos and body piercing. Rather, employers are free to make business decisions about the display of these styles. Some employers may permit it for employees who seldom or never interact with customers. Others may permit it for everyone, especially if their customers frequently have tattoos or piercings. Still others may decide that it is inappropriate for their businesses in all cases. The decision is entirely the employer’s, based on the balance between business needs and the need to attract and retain good employees.

This is really what dress codes are all about. Every business projects an image, and how its employees dress affects that image. Managers naturally want to put their best foot forward with customers. At the same time, a good workforce is not easy to build and retain. A too-strict dress code will repel good job candidates and may cause valuable employees to consider leaving. Inflexibility may violate anti-discrimination laws and inspire workers to file lawsuits. It is in an employer’s best interest to develop a dress code that reflects well on the business and keeps employees happy.

And remember, if you find yourself in the middle if a lawsuit that involves your company’s dress code, it is not covered by your general liability insurance policy.  In order to have coverage for these types of lawsuits, you will need to have an Employment Practices Liability Insurance (EPLI) policy.

Huff Insurance is a full service Independent Insurance Agent We have been dedicated to Protecting Lifestyles™ since 1960. We offer a full array of Personal Insurance, Commercial Insurance and Life Insurance & Health Insurance products. Call us at 410-647-111

Does your business have an employee dating policy?

In the modern workplace, men and women work together for eight or ten hours a day; sometimes even longer. When people spend that much time together, it’s not surprising that occasional romances will bloom. Many people have met their spouses at work. Unfortunately, workplace romances don’t always have happy endings. When a couple in an office breaks up, the atmosphere can become, at best, uncomfortable and, at worst, hostile. Productivity can suffer as the ex-partners feud with each other. More serious, in some cases the firm may have a significant financial exposure when love goes wrong.

Relationships between two people of equal position in the company may not be cause for concern, but romances involving supervisors and their subordinates can expose the company to legal liability. Workers outside the relationship may detect favoritism toward the subordinate when he or she receives pay raises, promotions, or other desired rewards.

Conversely, if the couple breaks up, the subordinate may be sensitive to any actions that smack of retaliation. In the worst cases, the subordinate may decide he or she is a victim of sexual harassment and take legal action against the company. The federal Equal Employment Opportunity Commission received almost 14,000 complaints of sexual harassment in 2008. Almost 30 percent of these settled in the injured employee’s favor, costing the employers $47 million, not including damage awards won through litigation.

Employers who wish to avoid close relationships with government investigators may consider several options, including:

• Not having an office romance policy. Firms who choose this option may emphasize anti-harassment and anti-discrimination policies instead.
• At the other extreme, some companies have outright bans on employee romances. While this may have some appeal, it can be difficult to implement because the forbidden behavior may be hard to define. Also, courts may not uphold such a ban.
• Some companies require employees who date each other to notify a company representative, such as the human resources manager, when the relationship begins and if it ends. This may protect the company from ensuing sexual harassment claims.
• Many companies have policies against spouses working for the same company or against employees supervising significant others, spouses, or other relatives. This can make it less likely that other employees will perceive favoritism, but the company must apply the policy equal to members of both sexes to avoid discrimination claims.
• Some companies actually require employees in a relationship to sign contracts. These agreements state that the employees have entered into a voluntary relationship, affirm that they understand the company harassment policy, describe how to report complaints, and describe acceptable and unacceptable behaviors.

In addition to adopting one of these options, employers can take some steps to reduce their chances of having to fend off sexual harassment claims.

• First, they should communicate to supervisors that relationships with subordinates should be avoided.
• They should create an environment where supervisors and other employees feel safe to report improper behavior.
• They should have policies against harassment and implement procedures for making complaints.
• They should take steps to end direct reporting relationships between romantic partners by transferring one of them, if possible.

Human nature being what it is, there will probably always be workplace romances. Thoughtful consideration and implementation of policy alternatives will help protect a company from potential resulting lawsuits. However, all the best precautions may still fail to prevent litigation, so all employers should carry employment practices liability insurance (EPLI). An experienced insurance agent can provide advise on the available EPLI coverage options and companies. With preventive measures in place and risk financing in the form of a good insurance policy, employers can focus on their top priorities: Growing their businesses.