Childcare Needs—Not Just a Family Affair

Family responsibilities don't disappear once working parents leave their homes and head for work. Childcare, in particular, is a workplace concern that could affect an employer's bottom line if employees are unable to find reliable care for their children. When employees feel torn between their work duties and their family obligations, employee productivity declines, absentee rates increase, and accidents are more likely to occur. The more time working parents spend worrying about daycare, the less time and energy they are likely to focus on their work.

Family-Friendly Options for Business Consideration

On-site daycare facilities are not a feasible solution for all employers. However, there are several less expensive alternatives business owners could consider when grappling with the issue of childcare. These options include the following:

• Provide information and referrals to available childcare resources in the local community. Gathering and updating information, and disseminating it to employees in a timely manner, could be your least expensive option.
  
• Offer flexible and part-time work schedules, especially during school hours. Part-time work opportunities can allow you to tap into a pool of reliable employees who are unable to work full-time.
  
• Offer assistance with childcare costs. This alternative is obviously more expensive than providing flextime, but it could be an option in a flexible benefit plan where employees choose from a menu of benefits.
  
• Provide a conveniently located day-care facility, perhaps arranged in conjunction with other employers in the area. Start-up costs could be borne by the employer, with employees paying only for the service.
  

Family dynamics have changed tremendously in recent years. The need for good childcare—and its effects on dual income families—cannot be ignored. The productivity losses and safety hazards resulting from employees unable to focus their full attention on their jobs could mean substantial hidden costs for an employer. For most businesses, providing family-friendly options to employees in the workplace may lead to more efficiency and a healthier bottom line.

The purpose of having a business insurance and risk management program in place is to provide sufficient protection for your business in the event of a loss.

The cost of implementing a loss prevention program may, at first, appear to be an unnecessary expense. However, a successful program can work toward alleviating the damaging effects of loss and may help save indirect costs, as well as keep insurance premiums at their lowest. Maintaining documentary evidence prior to a loss is important to sustain claimed values if your business should suffer a loss.

When determining the best program for your business, consider the following: What are the potential losses that your business could suffer? What effect could those losses have on your business? How can you reduce your risk exposure? What is the best blend of risk management, business insurance, and self-insurance for you and your business?

Filling the Gaps with Endorsements

Having Companies may be hard-pressed to find affordable insurance policies that meet all of their business needs and objectives. Businesses concerned with stretching coverage over a wide array of possible risks could potentially broaden those policies by obtaining endorsements. Endorsements address exclusions and limitations under a basic insurance program. There may be many choices available for filling gaps in coverage.

Let's review a few options that, if applicable to a business's needs, may help provide some additional protection:

• Contingent Business Income Insurance. If a company depends on other busi-nesses, such as manufacturers, suppliers, ordistributors, its revenue stream could beseriously affected if those businesses were to suddenly shut down in the event of a fire, storm, or other disaster. Contingent business income insurance covers a business for losses that occur under such circumstances.
  
• Accounts Receivable Endorsement. Suppose a business's accounts receivablerecords are destroyed by fire or other calamity. An accounts receivable endorsement covers a business for any amounts that are uncollectable as a result of the loss, as well as for the costs of collecting the accounts and recreating the records.
  
• Peak Season Limit of Insurance. During a company's most productive season(s), higher levels of inventory may need to be maintained to cover increased sales. However, if a catastrophe were to occur, the losses sustained could exceed the amount of insurance carried. A peak season limit of insurance endorsement offers a higher amount of coverage during a business's particular period(s) of high demand.
  
• Spoilage Coverage. Businesses that handle perishables must often maintain controlled conditions to prevent spoilage. A spoilage coverage endorsement protects a business against losses caused by power and equipment failure or general contamination resulting from incidents that are beyond the company's control.
  
• Ordinance or Law Coverage. If a covered peril—such as a fire or tornado—damages a business's property to the extent that the law requires its demolition or complete renovation, ordinance or law coverage insures for the loss, providing coverage to rebuild or repair a building in compliance with the most recent local building codes. Individuals who own large stakes in real estate may be particularly interested in this endorsement because of the potential for strict building codes and other safety requirements.
  
• Hired and Non-Owned Auto Liability. Hired auto coverage protects against claims arising out of the use of vehicles leased (on a short-term basis), hired, rented, or borrowed by your business. Employers whose employees use personal vehicles for business purposes, such as driving to a sales meeting or the office supply store, could be held legally responsible for an employee using such a non-owned vehicle. A hired and non-owned auto liability endorsement helps protect businesses against this risk.
  
• Coverage for Injury to Leased Workers. Contract or leased workers are a major segment of today's workforce for many businesses. A coverage for injury to leased workers endorsement on a workers compensation policy protects these workers for injuries sustained while on the job.
  

Gaps in a company's business insurance coverage can potentially createsignificant risks to its operations and employees. Obtaining additional endorsements helps provide an added measure of protection in the event of an unforeseen catastrophe.

To help ensure that you and your business are properly covered, please give us a call. One of our qualified professionals would be happy to assist you.