Technology – Cited as a Critical HR Service Delivery Issue for 2011

Technology is changing the way Human Resources is managed and administered. It can allow you to automate workflows creating faster information exchange and streamline your HRIS, Benefits Administration and Payroll operations.

Technology can significantly reduce administrative costs, paperwork and errors. According to CFO.com, the average cost for an HR staff to manually enroll an employee is $109.48; the average cost for an employee to enroll online is $21.79 - an 80% savings! According to Towers Perrin, online employee enrollment results in a 15% time savings by HR staff. According to Risk and Insurance, manual administration and billing processes can cause a 7% error in premium billing and a savings opportunity of nearly $11 PEPM occurs by eliminating overpayment due to ineligible dependents, wrong tier coverage, and processing errors.

According to the 2011 Towers Watson survey, the top 3 service delivery issues for HR are 1) talent/performance systems, 2) streamlining HR processes and systems, and 3) greater involvement in strategic business-driven issues. The survey found that companies are making greater investments in HR technology. More than one-third of respondents (34%) said they are planning to spend more on HR technology this year.

“We haven’t seen this level of increase in investment in HR technology since before the economic downturn. The fact that technology spending is up this year is a clear indication of the high level of return that companies are seeing when it comes to technology as a means for improving both HR efficiency and effectiveness,” says Tom Keebler, global leader of Towers Watson’s HR Service Delivery and Technology practices. The 14th annual HR Service Delivery Survey polled HR and HRIT executives from 444 organizations.

In the past several years, Seitlin Benefits has positioned itself to become a significant strategic partner working with employers to bring this value added service to their organizations. With over 100 vendors in the technology sector, it can be quite challenging to determine who and what is the right solution for your organization. That’s where Seitlin comes in. Below are the steps we will take to find the best technology solution to fit your needs and structure:

1. Discovery and needs assessment – we want to fully understand your current structure and what you would like to accomplish with a new system. We will perform an in-depth analysis of your processes and systems you are using now. Among other things we will be sure any system you consider has effective integration with your general ledger, benefits administration and HRIS components to assure “seamless one touch entry.”
2. We will then prepare a “RFP – request for proposals” - to review with vendors that potentially could be a match. We have access to the entire marketplace of payroll, HRIS, and benefits administration vendors. With over 100 vendors in the marketplace we can assist in narrowing down the list to only those that are a fit for your firm, your needs and your criteria.
3. We will obtain, compare and analyze the proposals from the vendors based on your criteria.
4. We will schedule demo’s with those vendors and participate alongside you. It is important to see the systems in action and determine what you like and don’t like to help narrow the selection. We can help you compare important differences in the systems according to functionality, security, pricing, and data integration.
5. We will assist you with the vetting and decision making process. We will make sure the system you select accomplishes your objectives and that each vendor can meet the implementation timeline you and we determined in the beginning.
6. We will oversee and manage the implementation. Once the right vendor is selected we will stay engaged to be sure the implementation goes smoothly and you have a technology advocate on your team to hold the vendor accountable.
7. We will become a permanent ongoing part of your service team to be sure the system continues to perform properly after the implementation.

To summarize, why automate? Technology increases accuracy and minimizes data errors with singular online entry, reduces printing costs and legal risks, and eliminates duplication and overpayments with data management controls.

Why wait any longer? Let Seitlin come in to determine your needs and help you find the Technology solution that is best suited for you!

For more information, contact:

Ramona Fiumara

VP & COO - Seitlin Benefits

Tel:  954.903.1622

Email:  rfiumara@seitlin.com

2011 Towers Watson 14th Annual HR Service Delivery Survey

2011 Financial Analysis for Companies in Employee Leasing Relationships

Significant changes in the health insurance and Workers’ Compensation insurance markets over the last several years make review of your Employee Leasing/Professional Employer Organization (PEO) relationships a worthwhile exercise in 2011.

Employee Leasing has been, and for some continues to be, an appropriate solution for employers with particular needs. Seitlin brokers for a number of Professional Employer Organizations so as to provide this solution to our clients when it makes sense. We are often finding, however, that what made financial sense several years ago no longer does.

There are three basic changes in the landscape that have eliminated much of the cost-savings that used to drive employers toward the PEO package:

1. Health Insurance - PEOs no longer have the latitude they had in the past to artificially reduce the health insurance rates they deliver to their clients. Insurance carriers realized they were often seeing the same employee groups shift to PEOs at much lower premiums; not a very profitable outcome for the carriers. Today, most PEO contracts with health insurance carriers severely limit the variance between PEO health rates and the carrier rates for the same group.
2. Workers’ Compensation – rates in Florida have decreased nearly 65% since 2003, primarily due to changes in tort law with respect to Workers’ Compensation claims. The current low rates leave less room for PEOs to provide discounts that translate into meaningful premium reductions.
3. Payroll technology - PEOs were often an administrative solution for companies that did not have strong internal payroll and benefits administration systems. Advances in payroll technology now allow payroll companies to offer robust and varied administrative options at a fraction of the cost of PEO fees.

Seitlin has found significant cost savings for a number of our clients by unbundling the employee benefits, Workers’ Compensation and payroll services previously provided as a package by Professional Employer Organizations. We recently reduced annual cost for a group of approximately 100 employees by $130,000 while improving their benefits offering. Seitlin has the expertise in house to provide your client with unbundled options in all these areas and perform the analysis to determine the financial impact of unbundling. Cost efficiencies usually become meaningful with groups of 50 employees or larger.

We would be happy to help any company involved in employee leasing review their options to determine the most cost effective way to operate as employers moving forward.

For more information, please contact:

Steve Light, MBA, CIC

Vice President

Tel:  954.267.8559

Email:  slight@seitlin.com

Personal Lines - Hurricane Claim Post-Loss Resources

Carrier Claim Phone Numbers

AI Risk/LexElite 877-244-0304
American Bankers 800-358-0600
Burns & Wilcox 800-282-5675 ext. 2201
Chartis 888-760-9195
Chubb 800-252-4670
Citizen’s Wind 866-411-2742
Citizens Property Insurance 866-411-2742
FAIA Member Services/RLI 800-444-0406
Fidelity National Flood 800-725-9472
Fireman’s Fund 888-347-3428
Florida Family 888-486-4663
Florida Peninsula 877-944-8368
Gabor Insurance 786-924-7034
Gulfstream Property & Casualty 866-485-3005
Hartford Insurance Company 800-787-5677
Hull & Company 800-678-4855 ext. 276
John Handel & Associates 800-282-7729
Lexington Insurance 800-931-9546
Navigators 866-408-1922
Progressive Insurance 800-776-4737
Seacoast Underwriters 800-637-3846
Southern Oak 877-900-2280
Swett & Crawford 727-536-1006
Towerhill 800-216-3711
Towerhill Preferred Flood 877-254-6819
Travelers Flood 800-505-0193
Travelers/First Floridian 800-252-4633
Zurich Construction 877-928-4531

Post Loss Clean-Up and Temporary Repairs

Air to Go 305-776-6076
• Rental of generator, portable a/c, light towers, etc.

All American Glass, Inc. 954-968-5229
 Broward, Miami-Dade, Palm Beach
• Full service glass, including 24 hr emergency service and board ups

All-Clean 877-925-3266
• Fire, water, restoration, including mold

Blue Team Restoration 855-522-2583
• Broward, Miami-Dade, Palm Beach
• 24 hours
• Fire, water, restoration, including mold, document and media recovery and art restoration

Documents Reprocessor 800-437-9464
• Documents drying

Puro Clean 866-859-7876
• Fire, water, restoration, including mold

Puro Clean 305-752-4019
• South Miami
• Fire, water, restoration and clean up

Riteway Insurance Repair Service 800-834-0558
• Broward, Miami-Dade, Palm Beach
• 24 hours
• Fire, water, restoration, including emergency board up

Service Master 800-737-7663
• Broward, Miami-Dade, Palm Beach
• 24 hour, will be directed to nearest service center
• Fire, water, restoration, including emergency board up

Servpro 786-293-7545
• Fire, water, restoration, including mold

Super Restoration 800-516-8059
• Fire, water, restoration and clean up

Seitlin Was Awarded Top Insurance Firm in South Florida by Business Leader Media

Seitlin was awarded the "2011 Best Insurance Firm" award by Business Leader Media. The annual industry awards dinner were held in May in Miami with over 400 attendees.  Other industry winners included Perry Ellis, Greenberg Traurig, the University of Miami and Blue Cross and Blue Shield.  This was a great honor for Seitlin and is reflective of the dedication and professionalism of our 125 associates in South Florida.

CLAIMS: The Insurer’s Obligations, the Agent’s Role

[For Claim Reporting contacts, visit Seitlin.com]

Insurance policies are contracts. Both parties to the contract [the insured and the insurer] have rights and duties [obligations] pursuant to the contract.

We discussed some of the insured’s most important claim-related obligations in the preceding document AFTER THE STORM –MAXIMIZING YOUR CLAIM RECOVERY. What about the insurer; what are its claim-related obligations?

First, the insurer is obligated to pay for loss or damage as more fully described and limited in the insurance policy. For example, the ISO Commercial Property Building and Personal Property Coverage Form states:

“We [the insurer] will pay for direct physical loss of or damage to Covered Property at the premises described in the Declarations caused by or resulting from any Covered Cause of Loss.”

Second, the insurer must comply with relevant principles of contract law and applicable Florida State Statute.Most important here is Florida Statute 626.9541:

"(1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE ACTS.

(i) Unfair claim settlement practices

3. Committing or performing with such frequency as to indicate a general business practice any of the following:

a. Failing to adopt and implement standards for the proper investigation of claims;

b. Misrepresenting pertinent facts or insurance policy provisions relating to coverages at issue;

c. Failing to acknowledge and act promptly upon communications with respect to claims;

d. Denying claims without conducting reasonable investigations based upon available information;

e. Failing to affirm or deny full or partial coverage of claims, and, as to partial coverage, the dollar amount or extent of coverage, or failing to provide a written statement that the claim is being investigated, upon the written request of the insured within 30 days after proof-of-loss statements have been completed;

f. Failing to promptly provide a reasonable explanation in writing to the insured of the basis in the insurance policy, in relation to the facts or applicable law, for denial of a claim or for the offer of a compromise settlement;

g. Failing to promptly notify the insured of any additional information necessary for the processing of a claim; or

h. Failing to clearly explain the nature of the requested information and the reasons why such information is necessary.”

Third, the insurer has to be wary of Florida Statute 624.155. Essentially, 624.155 gives the insured a “hammer” as follows:

“(1)Any person may bring a civil action against an insurer when such person is damaged:

(a)By a violation of any of the following provisions by the insurer:

1.Section 626.9541(1) (i)

(b) By the commission of any of the following acts by the insurer:

1. Not attempting in good faith to settle claims when, under all the circumstances, it could and should have done so, had it acted fairly and honestly toward its insured and with due regard for her or his interests;

2.Making claims payments to insureds or beneficiaries not accompanied by a statement setting forth the coverage under which payments are being made; or

 

3. Except as to liability coverages, failing to promptly settle claims, when the obligation to settle a claim has become reasonably clear, under one portion of the insurance policy coverage in order to influence settlements under other portions of the insurance policy coverage. Notwithstanding the provisions of the above to the contrary, a person pursuing a remedy under this section need not prove that such act was committed or performed with such frequency as to indicate a general business practice.”

 

In summary, given all of the above, the insurer must investigate, adjust and settle with its insured as required by the insurance contract and the law.

 

Seitlin’s role

 

Generally, independent insurance agents lack contractual or legal authority to:

• Conclusively construe insuring agreements and other policy terms and condition
• Investigate and pay claims
• Commit the insurer to any course of action

Specifically, our contracts with various insurers are in line with the foregoing and, while holding us to certain basic standards of performance, e.g. provide accurate information to the insurer, are expressly drafted by the insurers to recognize Seitlin as the insured’s representative.

Given these limitations, we function as our client’s troubleshooter and advocate, doing whatever we reasonably can to compel insurers to live up to their contractual and statutory obligation to adjust and settle claims.

How do we accomplish that?

• Maintain a staff of experienced Claim Consultants who understand the claims process from beginning to end;
• Focus on problem cases, becoming involved as soon as a client makes us aware that the insurer is not performing as required;
• Develop an in-depth understanding of the critical issues by communicating with adjusters, claim managers, executive management and attorneys;
• Devise and work to implement alternative claim management strategies as dictated by the facts;
• Realizing that coverage is the major factor in many claim-based disputes, remain current with Florida law as it relates to insurance coverage and approach coverage from a law of contracts perspective, using rules of policy analysis and interpretation to the client’s benefit where possible;
• Explain claim and legal issues to client personnel as needed to help them navigate through the claim process as easily as possible

Conclusion

We’ve reviewed the claims landscape from MAXIMIZING YOUR CLAIM RECOVERY; PRE-LOSS STRATEGIES to AFTER THE STORM –MAXIMIZING YOUR CLAIM RECOVERY, all in light of THE INSURER’S OBLIGATIONS, THE AGENT’S ROLE.

We hope some or all of this information will be of benefit to you, ultimately helping to put more money in your pocket if a loss occurs. If you have any questions, concerns, comments or suggestions, please contact Seitlin.

Maximize Your Claim Recovery: After the Storm

[For Claim Reporting contacts, visit Seitlin.com]

You’ve sustained a major loss, perhaps as a result of a fire or hurricane. Now what?

1. The typical Commercial Building and Personal Property Coverage Formimposes a number of Duties in The Event Of Loss or Damageon the insured, including:

“Give us [the insurer] prompt notice of the loss or damage. Include a description of the property involved.”

Simply stated, one of your first calls after the loss occurs should be a report of claim to the insurer, either direct to the insurer or via Seitlin. Don’t wait for perfect information; the insurer will work with you to fill in any gaps. Instead, report what you know now.

2. Here’s another Duty imposed by the policy:

“As soon as possible, give us a description of how, when and where the loss or damage occurred.”

This information can be provided as part of the first report if available, or as it becomes available. Again, the key is to get the information to the insurer as soon as you can.

3. The policy also requires the insured to try to prevent further loss or damage:

“Take all reasonable steps to protect the Covered Property from further damage, and keep a record of your expenses necessary to protect the Covered Property, for consideration in the settlement of the claim.”

In a nutshell, you must do what you reasonably can, as quickly as you can, to protect the property from further damage. This might include temporary repairs, e.g. boarding up broken windows, or beginning cleanup, e.g. drying out wet carpet and drywall, or moving undamaged property to a secure location out of harm’s way. DO NOT make permanent repairs to your damaged property unless the adjuster has reviewed your claim and given you permission to proceed.

Recall this excerpt from the first document in this series, MAXIMIZING YOUR CLAIM RECOVERY; PRE-LOSS STRATEGIES:

Have you identified and made arrangements with localcontractors, including restoration contractors,tobegin cleanup, make temporary repairs, andsalvage equipment and other propertythat can be saved? This could include "drying out" the premises, moving salvageable property to another location, and separating out property that is a total loss.

To reiterate: do what you can prior to the loss to be prepared to discharge your duties after the loss.

Remember too that Insurers tend to pay these post-loss, mitigation-related expenses as incurred as long as they aren’t exorbitant in light of the circumstances. Keep good records of your expenditures and present them to the insurer early on. An “advance payment” in reimbursement of the expenses is likely.

4. As an adjunct to the protection of covered property and minimization of the loss, the policy also requires the following:

“Also, if feasible, set the damaged property aside and in the best possible order for examination.”

In addition, take photographs of all damaged property, real and personal, right after the loss to the extent possible with safety foremost in mind. This will enhance the presentation of your claim and assist the adjuster in his or her investigation.

 

5. Generally, an insured has the burden to establish coverage under the policy and the amount of the covered loss. Seitlin personnel will help you to establish coverage but providing sufficient documentation in support of the claim is something the insured should be prepared to do. This will likely be the most time consuming and difficult part of the process.

 

The insurer will work with you to establish the amount of the loss but the policy imposes several Duties in this context:

 

“At our request, give us complete inventories of the damaged and undamaged property, including quantities, costs, values and amount of loss claimed.”

 

“As often as may be reasonably required, permit us to inspect the property proving the loss or damage and examine your books and records.”

 

“Also permit us to take samples of damaged and undamaged property for inspection, testing and analysis, and permit us to make copies from your books and records.”

 

Returning again to MAXIMIZING YOUR CLAIM RECOVERY; PRE-LOSS STRATEGIES, we posed these questions:

 

6. Do you maintain a continuously updated inventory of all your business personal property, including documentation [receipts, photos] to prove the existence of the property?

 

7. Do youback up data,including business and accounting records,regularly and maintain the back up data in a secure offsite location?

 

It should now be clear that your business records will be invaluable in expediting the settlement of your claim. Spending some time before a loss occurs with your post-loss Duties in mind will facilitate the discharge of those duties.

 

8. Finally, keep this Duty in mind:

 

“Cooperate with us in the investigation or settlement of the claim.”

You must cooperate with the insurer, e.g. by providing the documentation and access they are entitled to. If you don’t, the settlement process will grind to a halt. The vast majority of insurers want to work with their insuredsto arrive at a fair settlement as quickly as possible. However, insurers are very willing to wait indefinitely to get information they are reasonably entitled to.

We encourage our clients to take the path of least resistance, i.e. work with, not against the insurer. However, disputes can and do arise. In that case, it’s important to understand two things:

1. What are the insurer’s obligations to its insured in a claim context? And,

2. What is Seitlin’srole?

For an in-depth analysis of these issues, please proceed to the final document in the series, THE CLAIM PROCESS; THE INSURER’S OBLIGATIONS AND THE AGENT’S ROLE.

Maximize Your Claim Recovery: Pre-Loss Strategies

[For Claim Reporting contacts, visit Seitlin.com]

A prompt, fair settlement of a first party property insurance claim primarily depends on two things; sufficient insurance coverage and sufficient documentation to establish the amount of the loss.

Coverage is fixed; there is nothing you can do to change it to your benefit after a loss occurs. Therefore, you should focus on the things you can influence or control, e.g. avoidance, mitigation and documentation as more fully described below, to enhance the final outcome after a claim is submitted.

It’s especially important to do what you can “pre-loss” to be prepared to move forward quickly after a loss occurs, including discharge of your duties under the policy; see the next document in the series AFTER THE STORM –MAXIMIZING YOUR CLAIM RECOVERYfor more on this issue.

Are you prepared to move forward in the optimal manner after a loss? The answers to the following questions may help you to determine your state of readiness. “No” answers are not the ideal and may indicate a “preparedness gap.” We recommend taking action as follows to close the gap before a loss occurs.

1. Avoiding a loss is the best strategy. Have you done everything you can do to avoid or minimize a loss, e.g. alarms, sprinklers,hurricane shutters orimpact resistant glass, upgrading structures to meet the current building code?

2. Do your contracts include aclause that shields you from liability for damages if you are unable to perform your contractual obligations as a result of events or forces beyond your control?

3. Have you assigned internal responsibility for handling the claim with the insurer and communicating with corporate management, especially if multiple locations are involved?

4. Do you keep a list of relevant insurance policies and related information including:

• Contact information for your Seitlin agent
• Insurer names, policy numbers, policy periods, deductibles and coverage limits
• Instructions for contacting insurers directly if your Seitlin agent is unavailable

You should keep a copy of your completed list both on and off premises.In addition, provide your Seitlin agent with contact information for your key personnel.

5.  Do you have contingency plansfor securing essential services at your current location if services are disrupted? Will a generator be available? Can you obtain internet and phone service by satellite or other means? Have you secured access to fuel for your fleet?

6. Assuming you can't continue operating at your current location,have you made arrangements to operateatanother location?

7. Haveyou identifiedequipment dealers or leasing companieswho can providenecessary equipment to keep your business going in the short term and provide replacement equipment going forward?

8. Have you identified and made arrangements with local contractors, including restoration contractors,tobegin cleanup, make temporary repairs, and salvage equipment and other propertythat can be saved? This could include "drying out" the premises to avoid mold, moving salvageable property to another location, and separating out property that is atotal loss.

9. Do you maintain a continuously updated inventory of all your business personal property, including documentation [receipts, photos, video records] to prove the existence of the property?

10. Have you identified the best sources for replacement of your business personal property?

11. Do you back up data,including business and accounting records,regularly and maintain the back up data in a secure offsite location?

Seitlin personnel are ready to assist you with pre-loss preparation. Please contact Seitlin with any questions or concerns you may have.