People often question the value and need of a personal umbrella policy. At Gibson, we recommend them as part of every personal risk management program. In today's litigious society and with the increasing court award amounts, it makes perfect sense to have the increased protection.

Sandy devastated the non-hurricane prone Northeast and, for good measure, it left a blizzard in West Virginia. Preliminary estimates are as high as $20 billion, and this number is only for insured losses. To add insult to injury a Nor'easter left behind record snowfall totals from New Jersey to Maine just 8 days later. However, the impact on insurance rates is not likely to be significant despite the estimates of it being the third costliest storm in U.S. history.

For the 19^th consecutive year, Gibson has earned Best Practices status from Independent Insurance Agents & Brokers of America (IIABA).

It's that time of year when many companies are conducting their employee benefits 'open enrollment'.

Non-Compliance Is Costly
As a federal regulator, OSHA has come under fire by employers for the usual reasons people criticize federal mandates: mounds of paperwork and an obsession with endless detail. Yet an accident on the job can cost an employer millions, beginning a complicated cycle that piles expense upon expense.

Employers with poor loss histories will pay even more for their workers' comp coverage starting next year as most states change the way premiums are calculated.

Most industries are cyclical to some extent, and insurance is no exception. As an insurance buyer, it's important to know what factors determine the cost of coverage. But understanding the market cycle is only half of the pricing equation: since you can't control the market, it's equally important to know what you can do to ensure you are always securing the best price - whatever market conditions prevail.

As companies outsource more and more IT and data processing tasks it's important to consider data security and indemnification for losses resulting from service interruptions or data breaches.

The following table provides a timeline of effective dates for the primary healthcare reform provisions affecting employers.
 
Caution: PPACA is under constant review. Provisions could be adjusted, re-interpreted and even repealed in the future. This is a snapshot as of July, 2012.
 

Under the Patient Protection and Affordable Care Act (PPACA), aka Healthcare Reform, health insurance companies are required to spend a minimum of their premium dollars for health care. This percentage, called medical loss ratio (MLR), is 80% of premiums for groups under 100 employees or 85% for groups with 100 or more employees. If an insurer does not meet this standard, it is required to rebate the excess to employers by August 1, 2012. Employers need to become familiar with the MLR rebate rules and if receiving a rebate, know what needs to be done to be compliant with the law.