Don't be Left Liable If You're a Business Owner

Whether you oversee a business of a handful of people or hundreds to thousands, having business insurance may be more important than ever, given today's litigious society.

Another factor is with the usage of temp workers growing in some segments given the tough economy, employers need to be prepared for the potential liabilities that having such employees in the workplace brings.

According to numbers from the U.S. Bureau of Labor Statistics, following several months of drops in the number of temporary help services employees nationwide, the number has increased, reaching nearly 2 million (seasonally adjusted basis) in December of 2009. Bureau of Labor does not follow temp workers or independent contractors hired straight by employers, a much lesser number than temp workers brought on through temp agencies.

Not all employers understand when they bring on temporary employees via temp agencies that they could expose themselves to many, if not all, the same risks that occur when someone directly hires an employee.

Whether employees are hired through a staffing site or directly by the employer, employers should be knowledgeable when it comes to employment laws and benefits.

Employers need to clearly define the definition of temporary employment, as they otherwise run a true risk of being leveled with a claim that the employee is entitled to benefits under that plan. Potential benefits are a major lightning rod for possible liability.

Employers should keep in mind that using a temp agency to hire part-time workers mitigates a portion of the potential risk of an individual looking to be reclassified as an employee.

When you hire someone directly on a temporary basis, make it clear that they are part of a temp assignment and let them know what benefits apply as it relates to temp employees vs. full-time employees. In order to reduce potential liability, make clear that temp employees are not entitled to vacations, health care, 401(k), etc.

Finally, be sure as an employer to properly follow employment laws, and that your employees follow the guidelines too.

Employees under your guise need to follow discrimination policies and workplace harassment regulations in order to keep you from being opened up to liability. Also follow up with the temp agency supplying you with workers that they are conducting proper background checks of any employee set to walk through your door.

If you the employer are signing a contract with a temp agency, be sure to seek an indemnity agreement.

The indemnity agreement will keep the liability with the temp agency for any employment-related claims, along with indemnifying you as the employer for any losses that could occur should any claims be brought by a temp employee.

Tips to Reduce Liability to Temporary Employees:

A. Employers should make sure any staffing agency providing temporary workers has appropriate and adequate workers' compensation employment practices and general liability insurance.

B. Employers should ensure all temporary employees receive the same safety-related training as regular employees for a specific position.

C. Employers should require staffing agencies to receive waivers of remedies against the client employer other than workers' comp, and specify that workers' comp benefits will be paid by the staffing agency. See Denlinger v. Kenwood Records Management, 2007 WL 4553050, 745 N.W.2d 95 (Iowa Ct. App. 2007) (unpublished).

D. Employees should receive an indemnity agreement from the temp agency

maintaining the client employer harmless for any claim. Those include defense costs and attorney's fees, arising out of the placement of temporary employees.

Avoid Disaster when Buying Self Employed Health Insurance

Becoming self employed may be a dream of yours. But with that being said, having the responsibility of buying your own health insurance is probably not something that gets you excited. If you are in the market for self employed health insurance, you need to make sure that you avoid disaster. Believe it or not, there are many mistakes that you can make. And if you do, it could end up costing you and/or your business in the long run. It is much better to do all the leg work up front than to get stuck in a bad position in the future.

Here are three potential disasters to avoid when buying self employed health insurance.

1. Simply put, you need to purchase enough coverage. When receiving a policy through your employer you never had to worry about this. After all, you took what they offered. But if you are buying self employed health insurance, you cannot do this. It is up to you to make sure that your policy offers enough coverage for you, and maybe even your family.
2. Are you going to skimp on self employed health insurance costs so that you can put more money into your business? This is a common way of saving money, but also one that is quite risky. You would be better off cutting corners somewhere else. Remember, if you do not have your health you are not going to be able to work anyway.
3. Buying from a "lesser known' health insurance company could be a huge mistake. While they may offer lower rates, they may not have a large network. This means that it can be difficult to find a doctor in your area. And if you have an emergency, it can put you in an even worse position. Before you purchase self employed health insurance, make sure that the company is well connected with doctors and hospitals in your area.

Avoiding disaster is not difficult. But with that being said, it will take some time to find the best self employed health insurance policy.

Bush Provides Health Care Changes

Recently president Bush proclaimed in his weekly radio broadcast, "For the sake of America's small businesses, workers and families, we must make health care more affordable and accessible.' This was a relief to hear because of the sky-rocketing health-care prices.

Apparently, George W. Bush will push Congress to expand the use of the tax-free "Health Savings Account', which allows people to set aside money for routine medical expenses. This is a pretty convenient account.

He believes that this will encourage more and more American citizens to save money for their health and for the health of their families.

"This year, I will ask Congress to take steps to make these (Health Savings Accounts) more available and much more affordable and more portable,' Bush said on his radio address.

On January 31, George W. Bush will appear before Congress and deliver his State of the Union address laying out his priorities of the year. Several Republicans said that they expect the health care initiative to be cited in that speech.

This is a very important speech and will be remembered for some time. This savings account will be a money saver for many families and employees. Because there was such a shortage of health insurance for employees nowadays, health insurance is becoming more and more difficult to reach.

Bush strongly urged Congress to pass this program for the citizens of America. The White House strongly recommends that this program will be available for people.

The president's focus on health care comes as his management faces condemnation over glitches that have overwhelmed the rollout of the new Medicare prescription drug advantage program.

Since January 1, 2006, many poor and elderly people have been experiencing many problems that have made it difficult for them to get their prescription costs lower, or at least to a reasonable price.

Do small businesses offer big benefits through PEOs?

Good worker benefits are often the main aspect that boosts worker satisfaction. Professional employee organizations (PEOs) often offer a growing source for benefits, employment-related services and human resources expertise. Because PEOs offer such great benefits, employees go to work with much happier thoughts.

The National Association of Professional Employee Organizations has provided us with some PEO industry statistics. Here they are:

• Number of PEOs in the United States: approximately 700
• Average length of a PEO contract: 1 year
• Average number of employees for a PEO client: 16
• Number of states that require PEOs to be licensed: 20
• Average number of Americans co-employed by a PEO: 2 to 3 million
• Average gross pay per employee: a little more than $25,000

Milan Yager, executive vice president of the National Association of Professional Employer Organizations (NAPEO), said, "Small businesses want to add or upgrade their benefits to complete effectively for the best talent and retain good workers. They are learning that PEOs can provide great benefits efficiently and cost effectively. An estimated 40 percent of business clients entering a PEO arrangement significantly upgrade their total employee benefit packages.'

Because so many employees lack health insurance, these benefits that are offered directly through the job are very convenient and probably one of the major reasons so many employees join jobs that provide these benefits.

However, many employees don't realize that besides being a part of group health insurance, they can also purchase individual health insurance which will be with them no matter where they work.

Even though group health insurance is usually much cheaper for the employee, that doesn't meant that it is always the best choice. Consider purchasing an individual policy. If you can't afford to purchase an individual health insurance policy, consider the following tips:

• Create a tighter budget
• Shop around
• Purchase an HMO plan
• Don't purchase coverage that you don't need
• Look for good deals