From the vineyard to the bottle, every step of winemaking is built on passion, patience, and care. At Heffernan Insurance Brokers, we’re proud to protect that hard work. With over 25 years of experience insuring more than 125 wineries, we craft customized coverage that meets the unique needs of vintners and growers, because every winery has its own story.

Are you considering taking out a business expansion loan to help drive your company’s growth? Here’s a checklist of five key points to consider before taking on a business expansion loan:

1. Is it the right time for business expansion funding?

The growth and expansion of your small business is tied directly to your ability to achieve one of two central objectives: 1) finding more customers; or 2) expanding your product and service offerings.

Simply put, finding more customers helps you increase sales of your current portfolio of products and services. As a second option, expanding your business’s products and services offers existing customers a chance to purchase a new item, while simultaneously drawing in a new customer base.

As you consider these two options, reflect and ask yourself if you are truly ready for business expansion.

2. Are we in the right home?

The location of a business is at the forefront of its current and future success. If you are considering a business expansion, it’s essential to think about the location of your business. Also consider if you want to own or rent your property.

Buying a facility is certainly a significant commitment, especially considering that commercial mortgages are usually for shorter terms than residential mortgages (typically 10 to 15 years). Accordingly, a shorter term means a higher payment. Is your small business financially positioned to take on this type of increase?

Renting is sometimes a safer alternative to the up-front costs of buying property but can be less stable in other ways. For example, there’s no guarantee that a space will still be available to you beyond the time listed on your lease. In addition, renting requires the added cost of an up-front deposit, which is often the sum of your first and last month’s rent.

Keep in mind that if a new space needs updates or repairs, you will need to set aside funds from your business expansion loan for any renovations. As your business expands, it’s common to see a new location in the same market take over about 20% of the original location’s business. Is your business financially prepared to take on these costs while still growing?

3. Can we afford the team we need?

It’s impossible to grow without building your team of employees, and new staff members mean added expenses in payroll and benefits. A business expansion loan can help cover these costs, but as you add employees, you must hire and fill roles strategically. If you anticipate having a hard time filling the roles you will need, given your industry or desired experience, it could be difficult to grow as quickly as you might like. Expansion will be exponentially more challenging without the right candidates to fill each new position.

As part of any expansion, you and your management team must be able to fully trust your staff, because your time will be divided across multiple locations. Finding the right talent to lead through these transitions is key.

4.  Are we able to provide a stable inventory?

Inventory management is a challenge at the forefront of many expanding businesses. The idea of growing your current operations is often intriguing, but first consider your ability to manage an increased inventory. If your customer base were to double, do you have the appropriate means to support the increased demand?

Industries that experience regular cycles of higher and lower demand must make an extra effort to monitor and maintain stable inventory levels. In some cases, additional capital can aid in stabilizing inventory across fluctuating periods, keeping the right products in stock at optimal levels, even amid accompanying revenue fluctuations. A lack of proper inventory financing and management can leave you with either an extreme shortage or a heavy surplus of inventory, negatively affecting your business and finances.

5. Where can we acquire business expansion financing?

Most small business owners will rely on an expansion loan at some point in the life cycle of their business. This might be to pay for new facilities, new staff members, added inventory or any number of circumstances related to growth. Whom will you trust with your business expansion financing?

Our trusted financing partner Fundation helps businesses like yours every day. Fundation can provide the business expansion loan you need to secure the new facility you’ve been dreaming of, or to finally get ahead of seasonal fluctuations to master your inventory system.

Fundation’s business expansion financing is designed to meet the diverse needs of all types of small businesses. Loans from Fundation feature conventional terms, convenient refinancing options and prepayment without any penalty.

If you need capital to finance a business expansion, contact our partner Fundation to find the best solutions for your business.

- See more at: https://www.heffins.com/news-events/blog/planning-business-expansion-5-points-remember#sthash.jdlsIjD6.dpuf

For many small business owners, “risk management” means buying insurance. But while insurance coverage is a crucial part of any risk management strategy, it’s only one piece of the bigger picture.

Of course, as a small business owner, you likely don’t have the same training and expertise risk management professionals have. But you’re still responsible for managing the risks to your business – and if you plan to raise capital from investors, it’s even more important to have a good grasp of risk management.

So how do you think like a risk manager? It doesn’t have to be a big mystery. You just need the right mindset and a little direction. Follow these five steps to get you started in the right direction:

1. Identify your risks. There are many risks that are common to most or all businesses, but others are specific to you and your line of work. As the business owner, you’re in the best position to know what those risks are. Use a risk checklist to start from, and add to it based on your specific exposures. To help you get started, see Small Business Insurance and Risk Management Guide by the Small Business Administration (SBA). Specific types of risk you need to consider include property loss, business interruption, legal liabilities, key person losses, and employee injuries.
2. Assess your vulnerability to each risk. In other words, what are the odds that a particular risk will materialize, and how much would it cost you? The goal here is to quantify which risks are worth sweating over and which ones aren’t. For those that are, figure out how affordable it is to protect your company against that risk. For example, if it’s a low probability risk that would cost your company $40,000 in losses but would cost you $35,000 to protect against it, your resources may be put to better use elsewhere.
3. Choose the appropriate method of minimizing exposure to each risk. That could mean taking steps such as implementing safety policies and more training, installing a security system, or avoiding dubious transactions. You also need to decide which risks you want to transfer, which risks you can retain yourself, and which risks you need to finance through insurance or other means.
4. Get the right insurance. Insurance is a central part of any risk management strategy. Key types of business insurance include general liability, commercial property, and workers’ compensation. But do you also have risks that require product liability or professional liability coverage? Make sure you cover all the bases.
5. Monitor and adapt as needed. Take a few days every six months or so to review and update your risk management plan. Include owners, department heads, and other key people in your company, and consider bringing in your insurance carrier for advice.

Remember, smart business owners take smart, calculated risks, and smart risk management is the key.

By learning to think like a risk manager, you’re giving yourself the ability understand your risks more clearly and make better decisions in managing those risks. When you need advice from a risk management expert, contact Heffernan Insurance Brokers.

It’s the time of year for wildfires, and let’s just say the season is living up to its reputation. According to National Geographic, the United States sees more than 100,000 wildfires per year, consuming 4-5 million acres on the whole. Within the first five months of this year, the Insurance Information Institute said, there were somewhat fewer fires than the year before (20,563 versus 22,112), but in terms of acreage, the situation is more severe than usual. From January through May, 1.6 million acres have burned in 2016, as compared to 410,990 acres during the same period last year.

That’s for the United States as a whole. In California, Fortune said, two recent fires – Valley and Butte – have displaced more than 20,000 people and consumed 138,660 acres between them. The Valley fire alone is set to be the most destructive California wildfire since 1991.

The costs follow the severity, as one might imagine. According to the nonpartisan research organization Headwaters Economics, in the 1990s, the federal protection and suppression of wildfires cost less than $1 billion a year. Between 2002 and 2013, it rose to more than $3 billion annually. This year in California, the season was running around $212 million before Valley and Butte exploded. Those will make the previous estimate "look like a drop in the bucket in comparison," Fortune said.

If you’re concerned about the safety of your home, pets and family during wildfire season, here are some tips you can follow to help protect them.

Avoid the two most common causes of wildfire.

1. Equipment mishaps. "Lawn mowers, weed-eaters, chain saws, grinders, welders, tractors, and trimmers can all spark a wildland fire," according to a wildfire readiness organization. To prevent sparks, don't run heavy machinery after 10am, and don't run it at all during dry spells.
2. Burning unsafely. If you're building a campfire, do so safely: check for fire restrictions, choose an open location, clear it in advance and put it out completely when you're done, using the "drown, stir and feel" method. If you're burning debris, keep the pile under four feet long and high, clear a space 10 feet around it, keep a water supply nearby and obtain a permit first.

Protect your property and your family with common-sense strategies.

1. If it's dead, remove it. Dead branches on your trees. Dry leaves on your roof or in your gutters. Overgrown grass that’s since turned brown. These can and should be removed.
2. If a branch is near the ground, prune it. Wildfires can jump to treetops. The NFPA advises you to keep your trees lowest branches 6-10 feet from the ground.
3. If it's burning, drown it. Be diligent about disposing of ashes, matches and cinders of any kind, thoroughly soaking them before you leave them alone.
4. If it's fuel, keep it away. If you have a woodpile, it should be stacked at least 30 feet away from your home. The same goes for anything that could burn: keep a 30-foot burn-free area around your buildings.
5. If you see a fire, call 911. Don't assume someone else has already called it in.
6. If you live where fires are common, stay informed. "Many communities have text or email alerting systems for emergency notifications," according to the Department of Homeland Security.
7. If you're ordered to evacuate, do it. Don't make excuses. Don't delay.

Don’t stop there. Make sure your insurance limits are adequate and up-to- date with current building values. If you operate a business, ask your Heffernan Insurance agent about business interruption insurance. We recommend reviewing your policies with your agent at least once a year.

 See more at: www.heffins.com

As a business owner, your prime directive is to keep your financial ship afloat. And, some of the largest expenses on your balance sheet relate to insurance – group benefits, workers’ compensation, liability insurance, property insurance and more. If you pay more than necessary for one of these expenses, it means you have less to spend on key differentiators such as inventory, product development, equipment, marketing and talent. Likewise, if your competitors pay less for insurance than you, they have more cash to invest. In this way, insurance and risk management decisions become a true competitive advantage … or disadvantage.

Fortunately, when it comes to insurance, you have choices. You don’t have to just accept the rate quoted for traditional insurance. While captives, self-insurance, partially self-insured plans and high-deductible plans were once tools for the “big boys,” that’s no longer the case. These alternative arrangements have become more mainstream and accessible, making them feasible for smaller companies as well.

If you’re wondering if an alternative risk arrangement might be right for your company, consider some of the key advantages:

• Cost savings. The principal aim of self-insurance is to improve profits by reducing premium costs. Many companies find that by entering into an alternative arrangement, they can save up 15% or even more, right from the start.
• Control. Policies, types of coverage, and retention levels, plan design, and claims management strategies are all customized for the specific needs of the business. That includes covering risks for which commercial insurance is either unavailable or prohibitively costly.
• Full data transparency. You’ll have complete access to loss data so that you can make informed decisions. This can be particularly useful in group benefits, aiding with plan design and wellness program design.
• Cash flow. The upfront costs involved with these programs is often less than that of traditional insurance, freeing up some insurance dollars and making it easier to manage your company cash flow.
• Choice of counsel. A business owner is free to choose its own attorney instead of relying on a commercial insurer’s choice of attorney.
• Claims administration oversight. Business owners are in complete control of how claims are administered. They can hire their own third party administrators and create their own rules of engagement.
• Known out-of-pocket potential. Yes, you have a bit more financial skin in the game, but it’s not as risky as you might think. Several layers of reinsurance are built into the program so your potential out-of-pocket is a known and static figure.
• Safety committment. With an alternative risk management program, it’s easier to get invested in safety from the top-down, because the financial rewards of doing so are tangible and immediate.

With all these benefits, you might be wondering, why isn’t everybody doing this?

As a matter of fact, an increasing percentage of companies are taking control of their costs with alternative risk management strategies. According to a March 2015 Benefits Pro article, 26% of employers with 100 to 499 employees self-insure and 82% of companies with more than 500 employees self-insure.

Those who don’t explore alternative risk management options tend to be concerned about change, out-of-pocket exposure and the complexity of program setup. However, with so many companies jumping on the bandwagon, new products and options address those concerns. In other words: It’s much easier to go alternative than it used to be.

Ready to explore alternative risk management options for your group benefits, workers’ compensation or other business insurance needs? Contact the experts at Heffernan Insurance Brokers today.

- See more at: https://www.heffins.com/news-events/blog/captive-and-self-insured-programs-your-key-cost-control#sthash.1JCv4tTV.dpuf

December 1 is just around the corner, and that’s when the Department of Labor’s (DOL) new overtime rule officially kicks in. It’s been a long battle and a time of uncertainty for employers, but the fix is now in. Beginning December 1, 2016, the final overtime rule:

• Raises the salary threshold for exemption from overtime requirements to $913 per week or $47,476 per year for salaried employees, and from $100,000 to $134,004 per year for higher paid employees
• Automatically updates the salary threshold every three years based on wage growth over time
• Fortifies overtime protections for salaried workers who are already entitled to overtime
• Provides greater clarity for employers and their employees

The new overtime rule will impact an estimated 4.2 million U.S. workers currently eligible for overtime pay. Here’s a partial breakdown of how many workers are affected by state:

• California: 392,000
• Oregon: 46,000
• Washington: 76,000
• New York: 278,000
• Missouri: 85,000
• Texas: 370,000

But contrary to what many employers think, there’s more than one way to comply.

For some reason, many employers are under the impression that the only way to comply with the new overtime rule when they have employees who earn less than $47,476 annually is to change them from salaried to hourly. But there are other options:

• Raise salary and keep the employee exempt from overtime. This option works for employees who have salaries close to the new salary level and regularly work overtime.
• Pay overtime on top of the employee’s salary when necessary. This option works for employees who work 40 hours or fewer in an average workweek, but have occasional spikes that require overtime.
• Adjust hours and staff workload. There’s no requirement that an employee must have a predetermined schedule, and nothing prohibits working whenever, wherever, or however the employee and the employer agree.

FLSA enforcement is ramping up.

Between the new overtime rule, the increased scrutiny of employee classifications, and evolving minimum wage laws, employers are facing substantial changes in the way they compensate their workers. That means even more compliance headaches, and the DOL, the IRS, the Employee Benefits Security Administration (EBSA), and other agencies are promising to ramp up their enforcement activities. In 2015, the DOL alone collected $246 million in back wages for more than 240,000 employees from employers who were noncompliant with the Fair Labor Standards Act (FLSA).

These changing laws all share a common threat: an increase in Employment Practices Liability (EPL) risks for employers.

The past decade has seen a staggering 253 percent increase in the number of wage-related lawsuits filed in federal court. The cost to defend these claims is also skyrocketing, with average wage and hour settlement payments about $6.9 million from 2007 to 2015 according to NERA Economic Consulting. On top of that, cases can drag out in the courts for 18 to 24 months before reaching a settlement.

Make sure you’re ready

With employment laws in flux and EPL risks on the rise, now is a good time to conduct a thorough review of your employment, payroll, and recordkeeping practices, as well as your employee job descriptions and classifications. For assistance, see the DOL resources at http://www.dol.gov/compliance/ and http://www.dol.gov/whd.

Don’t forget financial protection.

If you run a business and have employees, you’re at risk – and if you’re not carrying Employment Practices Liability Insurance (EPLi), you’re raising the stakes on that risk considerably. In fact, you’re risking the very survival of your business. Just one EPL lawsuit could wipe you out if you’re not prepared.

Is your business protected from this growing risk? Let the business insurance experts at Heffernan Insurance Brokers make sure you are. 

See more at: http://www.heffins.com/news-events/blog/employers-are-you-prepared-new-overtime-rule#sthash.GdXte9dh.dpuf

As the holiday season rolls around again, your business will have new safety considerations to confront. From holiday parties and risk of electrical shock to fires and trips and falls, companies have a set of safety and risk management challenges that may not be present during most of the year. But decorating and decorations present their own set of safety challenges and this is what you need to be aware of when decking your office’s halls:

Safety While Decorating

Keep all relevant OSHA regulations in mind when decorating your workplace: both when in the process of decorating and making sure you don’t create new safety hazards that will last for the duration of the month.

When your staff are decorating the office, ensure that they stick to the same safety guidelines that they would otherwise follow:

• Ladder safety – Make sure employees don’t stand on tables, desks or rolling desk chairs when hanging lights or other decorations. Insist that they use ladders and that they have a partner to hold the ladder when they are working on high.

• Keep walkways unobstructed – You may have boxes of Christmas decorations that you bring out every year, or you may purchase new decorations too. When employees are decorating, make sure they keep all walkways free of wires, cords, boxes or any of the material you are putting up. When people are working in a disorderly fashion, they can easily trip and fall.

• Install wisely – Also make sure employees don’t put up decorations in a way that can impede movement of your workers or office visitors, or create trip hazards or expose staff to getting caught in the decorations.

• Unobstructed exits – Do not place any type of decorative items in exit corridors or on sprinklers. It’s essential to verify that none of your decorations block exit signage or fire safety equipment.

Lighting Safety

• Use LED lights. Not only do they burn cool, they are also more economical because they only use 10% of the electricity consumed by other bulbs.

• Use lights that are recommended by a reputable testing laboratory. Such lights are usually labeled “UL” or “ETL”.

• Prior to use, inspect lights and extension cords for defects or damage. Check for loose connections, cracked or broken sockets and bare or frayed wires. Workers should report all defects to their supervisor.

• Immediately replace burned-out bulbs with ones that have the same wattage. Unplug Christmas lights when replacing bulbs.

• Make sure you don’t create a maze of wires, cords and plugs when plugging in Christmas lighting.

• Never use outdoor lights indoors.

• Make sure Christmas lights and other electrical outdoor decorations are plugged into a ground-fault circuit interrupter. This device helps prevent electric shock and fire.

• Never use nails or tacks to secure cords of lights. Also, don’t run strings of lights through hooks.

• Never pull on a string of Christmas lights.

• Always turn off Christmas lights before leaving the business premises. Never leave them on overnight.

Christmas Trees

• Consider an artificial tree, which poses less risk than a live one.

• If you have a live tree, make sure that it is properly watered so it doesn’t dry out, which is a fire hazard.

• Live trees can be safer when sprayed with flame retardant.

• Put your tree in an area that doesn’t impede foot traffic or movement of workers.

• Don’t put live trees near heat sources such as space heaters, where they can dry out and pose a greater fire hazard

You should prepare for increases in your commercial vehicle insurance coverage for 2017 as accidents, injuries and costs rise for the first time in decades and insurers make up for years of low pricing.

Commercial auto insurance premiums have been trending between 6 and 10% higher since early this year and, if you’re policy comes due Jan. 1 or during next year, you may see your premiums increase. Experts say that rates are increasing in nearly all commercial auto segments – but trucking is feeling it more acutely.

The reason for the increase is that there are more accidents taking place on the roads and the costs of the claims – everything from vehicle repair to medical costs – are increasing for various reasons.

Auto insurance rates are rising at the fastest pace in almost 13 years, according to the Insurance Information Institute. The effects are being felt harder in the commercial auto insurance market than in the personal market.

That’s because commercial insurance rates have been stable for many years, barely budging despite rising costs. And now some insurers have left the market, reducing the supply of insurers in the segment, which has reduced competition and bumped up pricing.

The premium hike therefore essentially boils down to two factors: more accidents and rising claims costs.

Higher accident frequency

The increase in accidents, injuries and deaths is the result of:

• More people on the road due to cheaper fuel.

• More people on the road because the economy has improved and more people are driving.

• An increase in accidents due to distracted driving (mostly from texting using a smart phone or talking on the phone while behind the wheel).

One of the main contributing issues is risky behavior, which studies have found to be widespread. About 87% of drivers surveyed by the AAA Foundation for Traffic Safety in February 2016 reported that they had engaged in at least one risky behavior while driving in the past month, including using their phone or not wearing a seat belt.

Rising claims costs

According to the Insurance Research Council, the average cost of a liability claim increased 32% from $11,738 in 2005 to $15,506 in 2013. In 2014, it had reached $16,600, up 7% from the year prior.

Meanwhile, the average cost of personal injury protection claims (often referred to as no-fault claims) increased by 38.2% – from $5,802 to $8,017 – between 2005 and 2013.

Factors that are increasing costs:

• The cost of medical care for injured parties is increasing, particularly in the commercial auto segment, as victims of car or truck crashes tend to take longer to recover.

• As cars have become more high-tech, it has gotten more expensive to repair them. Also, more commercial vehicles than ever are being totaled, meaning the insurer has to pay out for the market value of the vehicle, because designs are often being altered to meet fuel and weight standards.

• Prices have been suppressed in the commercial market, and there are now fewer players in the market.

What you can do

While base rates are rising and out of your control, you can double down on safe-driver training for your employees.

If you can educate your driving employees in safe-driving best practices, you will reduce your accident rates, which will be reflected in the premium you pay.

For example, motor carriers that are very safe and have good “Compliance, Safety, Accountability” scores from the Federal Motor Carrier Safety Administration, are finding premium renewal rates that are consistent.

You can also adopt advanced technology like telematics and dashcams, both of which have been shown to improve overall driver safety. Cameras also help insurance companies when adjusting claims.

Everyone has heard the phrase “the journey of a thousand miles begins with a single step,” penned by the ancient Chinese thinker Lao Tzu.

For employers, keeping workers’ compensation costs under control can feel like a thousand-mile journey, but it also begins with a single step – the crucial hiring and onboarding process.

Why is this process so important for keeping workers’ compensation costs down? Because for years, studies by the Bureau of Labor Statistics and many others have shown that new hires are at much higher risk for injuries and time loss claims than those who have been on the job longer. Why? Bad hires and a lack of training are two prime suspects – even more reason to get the hiring and onboarding process right.

If you want to get your workers’ comp cost-cutting journey started off on the right step, follow these hiring and onboarding best practices:

1. Create effective job descriptions. Workers who are mentally or physically unable to do the job you hire them for are a risk to themselves and your business. Review all job descriptions to ensure they are an honest representation of the position and accurately define all responsibilities, experience, skills, and education required, as well as your expectations.
2. Screen applicants thoroughly. Your screening process needs to be as thorough as possible, including pre-screening interviews, careful review of resumes and other documents, checking references, performing background checks, and drug screening. Consider personality screening, which can give you valuable insights into a candidate’s personality traits.
3. Mind the rules. When conducting background checks and screening, make sure you’re complying with the Americans with Disabilities Act (ADA), state disability laws, and laws prohibiting retaliation against employees who file workers’ compensation claims.
4. Conduct engaging interviews. This is your chance to probe into the psyche of each applicant, have a one-on-one conversation with them, and see how they think. Ask engaging questions and pose hypothetical scenarios, and take note of how thoughtfully they respond.
5. Put it in writing. Every step of the hiring process should be documented and kept on file. Professionally written employment letters are an ideal tool for documenting job offers extended to promising candidates, rejection of unqualified applicants, and welcoming of new hires.
6. Provide a thorough orientation experience. New hires who go through a structured onboarding process are much more likely to be satisfied in their job, stick around, and be more safety conscious. Get them started on the right foot by welcoming them, introducing them around, and thoroughly familiarizing them with their workstations, tools, supplies, company policies, safety guidelines, and your safety culture.
7. Provide immediate and ongoing training. New employees should be trained in their duties by an experienced worker, started out in lower-risk situations, and gradually advanced to higher-risk work as they gain knowledge and skills. Reinforcement is vital, so monitor and track their progress, and provide ongoing refresher training.
8. Keep the lines of communication open. New employees have many questions, so have an open-door policy and be available. Schedule regular progress meetings for the first month to give them a chance to talk about any issues, and provide constructive feedback.

Creating a safe workforce starts at the beginning with your hiring and orientation. By sticking to a thorough, thoughtful, and consistent process, you’re putting yourself in a much better position to foster the kind of work environment that can help reduce injuries and keep your workers’ compensation costs down.

Want more ways to create a safe work environment and cut your workers’ comp costs? Contact the workers compensation insurance professionals at Heffernan Insurance Brokers today. 

- See more at: https://www.heffins.com/news-events/blog/work-comp-cost-control-begins-hiring-and-onboarding#sthash.PBu2EU9V.dpuf

Over Seas Endevors

There may be the occasion when you have to send executives or a team overseas for work. And depending on the destination, the risks will vary – more in some countries and less in others.

Other factors that come into play include the number and age of your staff working overseas and what type of activities they will engage in when they are on their work assignment.

First off, your current liability insurance may cover the basics if your staff are there on a short-term assignment. For example, if one of them injures someone while driving a car in the country, your liability policy would likely cover the damages.

But if you are selling your service or products abroad of if you have a representative office there, you may need the enhanced coverage of a foreign liability insurance policy.

According to International Risk Management Institute, foreign liability insurance is:

“A specialty policy for an insured’s liability for foreign operations arising out of a permanent branch office, manufacturing facility, or other operation located in another country. The commercial general liability (CGL) policy provides coverage for incidental exposures – for example, when an executive (or group of employees)... occasionally travels overseas for business trips. For permanent operations in foreign countries, a separate foreign liability policy is required.”

Why purchase foreign general liability coverage?

Your existing corporate liability plan may not cover you for legal expenses and lawsuits brought in overseas courts. Travel to foreign countries brings with it a number of challenges, including corrupt officials, crime, and unfamiliar laws, languages and customs.

Organizations from the U.S. have no protection if they are taken to an international court, so protect yours with a good foreign liability plan.

Who needs the coverage?

You may want to consider foreign liability insurance if you:

• Have employees or volunteers who travel outside the U.S.

• Own or lease vehicles outside the U.S./Canada.

• Export goods or services.

• Have or transport property outside the U.S. or Canada, in- cluding at foreign trade shows.

• Outsource work to subcontractors who are domiciled outside the U.S. and Canada.

• Own or operate locations, such as sales offices or call cen- ters, outside the U.S. and Canada.

• Station American workers at foreign offices and/or employ third-country or local nationals.

Acting on new marching orders from the Trump Administration, federal OSHA seems to be scaling back some regulations to benefit employers.

Significantly, it seems that large employers will not be required to start submitting their injury and illness reports electronically as required by Obama-era regulations that were to take effect in February.

The idea was that these electronic filings would become public information easily accessed online, as part of Obama’s push to publicly shame companies with poor workplace safety records.

Under current regulations, establishments with 250 or more employees in industries covered by the record-keeping regulation must submit information from their 2016 Form 300A electronically by July 1, 2017.

As recently as early January, OSHA said on its website that it expected the site to be live in February. But in recent weeks, the agency changed the wording and it now states that: “OSHA is not accepting electronic submissions at this time.”

It’s unlikely that the electronic reporting will go forward under Trump, and that will also likely mean that companies won’t have their records posted online.

Another Obama rule, issued in December, is also likely to never see the light of day. That regulation gives OSHA the authority to cite companies failing to properly record workplace injuries up to five-anda-half years after an alleged violation.

For years, OSHA had taken the position that it had up to five-anda-half years after an alleged violation to issue a citation for recordkeeping infractions.

But a court in 2012 found that OSHA’s interpretation was inconsistent with what the court called the “clear” wording of the law, which gave the agency only six months to bring charges.

In response to that ruling, the Obama administration promulgated new regulations circumventing the court decision and restoring the five-and-a-half-year period.

Legislation overturning Obama’s rule has already been passed by both houses of Congress and Trump is expected to sign it. When he does, the six-month rule would stand.

The problem for honest employers in this is that six months does not give OSHA enough time to detect record-keeping violations and bring subsequent charges. Also, if an inspector finds during an inspection that a company has been flouting the law and not filing its records for years, OSHA would be unable to cite the business.

Unfortunately, this could create an unlevel playing field, as responsible companies comply with record-keeping rules, while companies that take shortcuts won’t.

In a further step, OSHA announced in February that it would delay the implementation of a new rule aimed at reducing workplace exposure to beryllium, a widely used mineral linked to a deadly lung disease.

The rule was slated to take effect in March, but OSHA has delayed that until May at the earliest.

Employers can also expect a slowdown in new rule-making thanks to Trump’s executive order in January that agencies must cancel two regulations for every new one they make.

The new policy is expected to slow ongoing OSHA rule-making, such as an industry-backed effort to write regulations specifically for tree-trimming work and discourage the agency from pursing wide-ranging rules, such as revising limits for chemical exposures.

 

 

 

ONE OF THE keys to instituting a good safety program is to get management buy-in.

You need their support and belief in the system if you are to convince your employees to embrace your safety regimen.

If your managers don’t believe in the safety plans you have put together, it will show through when they try to sell them to your staff.

If you don’t have buy-in from your managers, the chances are slim to none that your employees will embrace the changes you are proposing. 

If you are serious about preventing injuries and want to keep your workers’ comp X-Mod low, the role of your management team is crucial.

You will often encounter a few different personality types among your managers  and they need to be convinced of the importance of workplace safety in different ways.

You’ll need a different approach with each personality type to get them to embrace the concept.

Once they do, they can effectively convey the urgency and importance of workplace safety to the rank and file.

Constructor Magazine has these recommendations for getting management buy-in:

Select the Right Leaders

Choose managers who are firm, yet fair with a passion for the safety of the workforce. They should have a track record of success so that they can be an inspiration to their teams. Also, they should not be afraid to get their hands dirty to make a point or demonstrate how something is done.

Address Every Aspect of Your Operation with Management

Take a holistic approach Every facet of your operation needs to be addressed if you want a comprehensive risk management culture to exist.

Extend discussions about risk management beyond the worksite to help managers see the bigger picture of why safety matters.

Assessing risks associated with every task, purchase order, estimate or piece of equipment used will reinforce the notion that risk management is a company-wide function.

Make Periodic Site Visits

Leadership should visit departments to watch workflows and reinforce the importance of safety to the workers. Make the visits with the manager who has been put in charge of safety for that department.

Leadership’s role should be to start conversations with workers about safety challenges and asking for ideas for improving safety.

Use these visits to celebrate successes and challenge the team to always look for issues that could lead to injuries. 

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Federal OSHA has suspended its much anticipated and dreaded electronic filing rules for workplace injury and illness records. 

The rules, put in place during the Obama administration, would have required organizations with 250 or more employees to submit electronically information from OSHA Forms 300 (Log of WorkRelated Injuries and Illnesses), 300A (Summary of Work-Related Injuries and Illnesses), and 301 (Injury and Illness Incident Report).

The same rules would also apply to employers with between 20 and 249 employees in certain industries, including agriculture, construction, manufacturing, retail and transportation.

A major thrust of the rules was to name and shame employers with poor workplace safety histories, and the latest move will essentially keep these records from being published. The requirement was to be phased in over two years.

This year, all covered establishments had until July 1 to turn in their 2016 forms electronically, but OSHA never launched the website for companies to submit the information.

The employer community, particularly the construction industry, had heavily lobbied the Trump administration to jettison the new rules, saying that if injury records were publicized they could unfairly hurt the reputation of employers.

The new rules were supposed to be an extension of an OSHA requirement between 1995 and 2012 that required some 180,000 establishments in high-hazard industries to submit their 300A forms by mail.

The program lapsed in anticipation of the now extinguished new rules.

Then in May, OSHA wrote on its website that it “is not accepting electronic submissions of injury and illness logs at this time, and intends to propose extending the July 1, 2017 date by which certain employers are required to submit the information.”

As a result, the existing rules for the forms remain in place – and particularly that employers post Form 300A in a conspicuous place in the workplace every year starting Feb. 1 for three months.

While employers are not required to send their completed forms to OSHA, they must retain the forms at their establishments for five years after the reference year of the records. 

In the United States, wine is big business. According to the February 2016 issue of Wine Business Monthly, there are 8,702 wineries in the United States, an increase of 415 from the previous year. All this wine comes with significant risk. Wineries face specific exposures and require the right insurance policies to protect them.

 

Exposure #1: Damage or destruction of inventory due to perils such as earthquake or fire. 

On August 24, 2014, a magnitude 6.0 earthquake shook California’s Napa Valley. The quake did significant damage to the areas many wineries. According to researchers at the University of California Agricultural Issues Center, in a presentation made to the Alfred E. Alquist Seismic Safety Commission, the wine industry suffered $70 to $100 million in damage due to the earthquake. Infrastructure was damaged, irrigation systems broke and 330,000 gallons of wine leaked.

The damage would have been even worse if the quake had occurred after harvest, when the tanks and barrels would have been full, or during business hours, when workers and visitors would have been present.

Earthquakes, fires and other catastrophes pose a serious risk to wineries. The right coverage can provide protection, but it’s important to examine the details of the policy.

• Here are some important questions to ask BEFORE a loss, from the International Risk Management Institute:
• What is your insurer’s definition of wine stock? Does it include raw materials or finished goods?
• What will be covered if your inventory is damaged by earthquake or fire?
• Does your policy cover stock only in your care, custody and control? What if inventory is stored elsewhere?
• What if the loss occurs while your inventory is in transit?
• What is your insurer’s method of valuation for lost wine stock? Will they pay the price the wine could have been sold for, or will they pay the market price of replaceable bulk wine of like kind and quality?

Exposure 2: Wine Leakage

The 2014 Napa Valley earthquake caused hundreds of thousands of gallons of wine to leak, but smaller wine leaks can occur for a variety of reason. Old or improperly maintained equipment could break. An employee could damage a tank or barrel. Other accidents could occur.

Whatever the cause, each drop leaked equals a loss in product and profits.  According to the International Risk Management Institute, a stripped wing nut can lead to a leakage claim as high as $240,000.

To make sure your claims will be fully paid, examine your insurance policy carefully.

What you need to know:

• What is your insurance policy’s definition of wine leakage? Does it include losses due to accidental damage, vessel failure or human error?
• What is the maximum value payable per gallon lost?

Exposure #3: Wine Stock Contamination

Wines can be contaminated in several ways. In 2016, Moms Across America released evidence of glyphosate, an ingredient in pesticides, in wines from California, including wines that were supposed to be organic and therefore chemical-free. Other substances, from arsenic to fungus, can also contaminate wine. 

Contamination can decrease the value of your stock. To make sure you’re covered, check your policy.

What you need to know:

• What is your policy’s definition of contamination?
• Does the coverage include contamination by human error and cleaning agents?

Exposure #4: Business Interruption

When a catastrophe like the 2014 Napa Valley earthquake strikes, getting back to business as usual can take a while. Buildings may be unsafe for occupation, equipment may need to be repaired, and a combination of leaked wine and delayed harvests can result in there being less product to sell.

To make sure your winery is protected against business interruption, review your policy.

What you need to know:

• What happens if you must interrupt business operations due to fire, earthquake or other disaster? Which losses are covered?
• How does your policy respond to losses resulting from off-premises power failure?

Exposure #5: Liability

When alcohol is involved, the liability risk is high.

Wineries that have tasting rooms face the same liability issues as bars. If employees break laws regarding serving minors or inebriated individuals, legal action may follow, especially if an accident occurs as a result. 

Wineries may also be held liable for injuries that occur on the premises or for damage that arises from the product. For example, in 2015, a lawsuit was filed against multiple California wineries over allegations of high arsenic levels.

Make sure your winery has full liability coverage.

What you need to know:

What are your commercial general liability policy limits?

• Do you have an umbrella policy?
• Do you have liquor liability coverage?
• Are there any coverage exclusions for off-site activities or special events (such as concerts and weddings)?

Your Heffernan Insurance team is a great resource in navigating these and other exposures. Our Vintners and Growers insurance program is specifically tailored for your industry. Learn more here.

While most businesses with an automotive or trucking fleet focus on safety, few businesses are actually monitoring their drivers to make sure they are adhering to the company’s rules, a new study has found.

Many companies only pull reports on their drivers’ records on an annual basis, which means they miss important developments like a DUI or a few moving violations that will increase the cost of insuring them.

In fact, 70% of companies with fleets do not even monitor their drivers and 60% don’t have a safety program in place, according to the study by SambaSafety, a firm that provides background screening and driver safety records for companies.

The key to having a successful driver safety program in place requires management buy-in and a company-wide culture focused on safety that encompasses not only a company’s fleet drivers, but also anybody in the operation that may drive their personal vehicles on occasional company business.

SambaSafety recommends:

Motivating staff to be safer – The company advises against just issuing warnings like “slow down” and “put away the phone,” and instead focusing on what’s at stake if they don’t. Instead of numbers and checklists, make a presentation that lets them think in terms of their well-being, or even loss of life, for the best response.

Providing strong safety leadership – Creating a safety culture requires leadership to model the behaviors that all employees should adopt.

Not just focusing on fleet drivers – Any employees that use their vehicles for work must also be part of the training and they should know that you expect the same safe behavior of anybody you employ that drives.

Drive home the point that an employer can be responsible for anything that happens when employees are conducting company business, even if they are running to the office supply store for you.

Being consistent – Just because you have a safety policy, it may not be enough to get you off the hook if one of your drivers causes an accident. Companies can be held responsible if they do not have proactive intervention policies and detailed documentation.

Using data to your advantage — Collecting data on your employees’ driving habits can greatly improve your ability to make sure you have a safe fleet of drivers. And the best way to do that is through continuous driver monitoring.

“The right data can help employers accurately reward those who are doing well, too, and securely keep up with disciplinary actions toward those who are missing the mark,” SambaSafety says in its report.

The Trump administration has withdrawn guidance issued by the Department of Labor under President Obama that had tightened restrictions on joint employment and independent contractors.

The move may give only the semblance of respite though, because the enabling regulations are still in place and so is established case law on the subject. The move only affects guidance that the DOL had issued to clarify regulations that were also codified during the last administration.

In other words, for now the regulations remain in place and if the administration wants to tackle those, it would have to start from scratch in the rule-making process.

What It Changed

The guidance that the DOL removed from its website did two things:

• Defined in strict terms the situations in which a worker is considered an employee under an “economic realities” test; and
• Expanded the joint employer doctrine. It did this by saying it would consider “whether, as a matter of economic reality, the employee [was] economically dependent on the potential joint employer.” This mostly concerns franchise operators and the franchising company.

Under now-withdrawn Jan. 20, 2016 guidance, joint employment can be “horizontal” or “vertical”:

Horizontal employment: When an employee is employed by two or more “technically separate but related or overlapping employers,” such as separate restaurants that share economic ties.

Vertical employment: Staffing agency arrangements or similar operations where the “employee of the intermediary employer is also employed by another employer.”

The guidance said factors to be considered under the test include: 

• The extent to which work performance is an integral part of the employer’s business.
• Workers’ opportunity for profit or loss depending on their managerial skills.
• The extent of the investments of the employer and the worker.
• Whether the work requires special skills and initiatives.
• How permanent the relationship is.
• The degree of control exercised or retained by the employee.

How It Affects Employers

Courts have been using this guidance when considering cases centering on independent contractors and rescinding the guidance may not have an impact on future litigation.

Also, many states have adopted their own version of the regulations which will typically supersede the Federal rules since they are most likely to be applied locally.

However, going forward, investigations into complaints made to the Fair Labor Standards Board that touch on these issues would likely no longer rely on the repealed language when determining whether action should be taken against an employer. 

If one of your employees or a customer had a serious medical emergency while at work, would your staff know how to respond?

Unfortunately, most workers are not prepared to handle cardiac emergencies in the workplace because they lack training in CPR and first aid, according to a new survey by the American Heart Association.

The AHA found that most employers don’t train their workers in CPR and first aid, and half of workers could not locate an automated external defibrillator at work.

The findings reflect the poor preparation many people have for dealing with a medical emergency.

The AHA interviewed corporate safety managers, who pointed out the need for more frequent training. The survey found that:

• 33% of safety managers said that first aid, CPR and defibrillator training only became important and was offered after an incident demonstrated the need.
• 33% of safety managers said lives had been saved at home and at the workplace as a result of training provided at work.
• 75% of safety managers said injuries or medical conditions had been treated in the workplace with this training.
• 36% of safety managers felt it would be valuable to offer training more frequently than every two years (the current requirement).

Have at Least One Person on Every Shift Who Knows CPR

Employers can contact organizations such as the American Red Cross or a local private institution for training.

OSHA does not require that you have staff who know CPR and how to use a defibrillator, but it’s a good idea to have someone trained.

OSHA recommends CPR and defibrillator training as a best practice but doesn’t require it, except for a few high-hazard industries.

The AHA recommends that all employers offer first aid, CPR and defibrillator training because it can save lives.

If someone suffers a heart attack at work they have only a 5 to 7% chance of surviving while waiting for emergency medical services to arrive. Workers who receive immediate defibrillation, however, have up to a 60% survival rate one year after cardiac arrest, according to the AHA.

Safety experts recommend having at least one person on every shift that is trained in CPR and how to use a defibrillator. In fact, the more employees who are trained, the better.

All employees should know who on staff is trained so they can fetch them in case of an emergency.

The best approach is to have a full staff training manual on first aid, CPR and defibrillator use, which you should consider keeping in your office.

Everyone in your organization should know where the nearest defibrillator is located. It should be in a conspicuous place, like hanging on a wall.

New penalties for workplace safety infractions in California took effect on Sept. 14, nearly doubling the maximum fines that Cal/OSHA can levy on employers who are cited.

California was required to increase its penalties in response to penalty hikes implemented by Fed-OSHA last year. All new fines have a cost-of-living component that will entail annual increases starting Jan. 1, 2018.

Meanwhile, the maximum penalty for serious violations remains unchanged at $25,000.

At the same time, the fixed statutory penalty of $2,000 for serious tower crane and carcinogen-use violations has been repealed and replaced by a new maximum of $25,000.

Hiring is a critically important process for any business owner and can generate as much stress as it does excitement. There’s much to consider as you begin to grow your team, but finding the right employees—from a skills perspective as well as a cultural one—can be quite a challenge. Small business hiring is a skill that a business owner often gains confidence in with time and experience, but there are some central focus areas to help you make the best choices for your business.

 

Here are a few tips to guide you in finding and hiring the best team for your business:

Consider the Nature of Your Business

Hiring new employees happens in every industry and is a vital part of your business. Your employees are often your customers’ first line of sight into your organization and can leave a lasting impression. Hiring is never easy and can be more challenging when employees work remotely or travel to engage with customers in different locations. Regardless of the working structure or environment, it is necessary to carefully consider how many employees you need and their individual roles and responsibilities, and then match people specifically to each position. It might turn out that you need certain positions to be full-time while others are part-time; and some can be outsourced to contractors.

Determine When You Should Outsource

As your small business grows, it’s exciting to imagine a growing workforce, but it’s always recommended to pause before adding full-time employees—particularly if there’s technology or an outside agency available that can complete the work you need at a lower price point.

Many small businesses outsource functions like advertising, accounting and legal assistance because it is more cost-effective than having a full-time employee in-house. So before you hire for a new position or refill a vacancy in an existing role, look into technologies and service providers that can provide the work you need at a lower cost.

Place the People in the Right Roles

Small businesses often produce employees who wear multiple hats and whose expertise spans more than one area. This helps keep things moving efficiently, without requiring a large team. Often it makes sense to hire gradually as your business grows, maintaining a lean workforce and training people to excel in different areas and hiring people who can support several functional areas.

An employee’s mind-set and attitude can be as important as his or her skills and experience. If you set out to hire people who embrace a team spirit and are diligent, collaborative team members, they likely will be able to help in many ways and grow with your business. Pay close attention to a candidate’s connection to your company’s mission and willingness to embrace a diverse set of responsibilities. This type of agile employee is often best suited for any number of roles.

Review Finances Before Hiring

It might seem obvious, but always consult your budget before hiring a new employee. Review the entire cost associated with a new hire, from salary to taxes to benefits and insurance, in order to understand the complete picture. The total cost to your business when all the pieces are combined might surprise you.

Any time that you are moved to create a new role or fill a vacant position, first review your current balance sheets. Think through what you can comfortably afford to spend on the role and what the anticipated return will be from the work. The cost to grow your workforce can rise quickly, and it often makes sense to consult with a professional service provider to ensure that you are making the best decisions for the long-term health of your business. Our lending partner Fundation offers all types of small business financing options, like working capital loans and business expansion loans, to give your company the financial guidance and support it needs to grow your team of employees and your business.

Weigh Temporary Employees vs. Full-Time Hires

Small business hiring is justifiably one of the most stressful processes for a small business owner, and for good reasons. Your employees are the heartbeat of your operation, and you want the best possible candidates contributing to your business, with their diverse skill sets and abilities. A strong team is central to seeing a business reach its full potential.

Sometimes, finding the employees you need is more challenging than you might initially consider. If you’re not finding your ideal fit for a given role, don’t rush to fill it with someone who doesn’t give you total confidence. Instead, consider using temporary help like contractors, temp agencies or freelancers.

Seeking alternatives to a full-time employee can give you more time to find your best-fit candidate and also can help you gain a better understanding of the skill sets needed to help your business grow forward successfully.

Every business owner has experienced different obstacles in hiring, and the process is rarely uniform. There are many helpful small business hiring tips and resources to position you for success. Effective staffing most often results from a thorough understanding of your company’s unique needs.

Are you ready to make your next hire? Our partner Fundation can provide you with the growth capital you need to comfortably add new team members with no negative impact to your cash flow.

Contact Fundation today, and learn more about small business lending solutions available to help your business grow. Fundation is a true partner that will never sell your loan, and it delivers the highest level of customer service.

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Building a small business is a challenging venture, regardless of industry. One way to differentiate your business from the competition is to improve and diversify your marketing strategy to reach potential customers in as many ways as possible. When it comes to marketing your business, you don’t have to do it all—you simply have to apply the strategies and approaches that make the most sense for your product and for your customers. Online marketing is arguably the most effective and dynamic option for today’s small businesses, and getting started is easier than you might think.

 

Here are 5 online marketing tools for small businesses that can help drive your business forward:

1. Optimize Web Design

 

A website is absolutely part of a digital marketing plan, as the central hub of online content for your business. It’s essential to keep your website up to date with current information and contact information, in a user-friendly design. Make sure that customers can easily navigate through your site to find what’s most relevant to them and that your site functions appropriately on mobile platforms like cellphones or tablets. It’s often favorable to skip flashy graphics and animations that can take longer to load and that detract from your key messages.

2. Create a Customer-Facing Blog

 

Blogging is an inexpensive and effective way for a small business to engage with its customer base online. Not only can you answer customer questions and initiate conversations; you can also position your business as an authority in your industry or field. Best practices in blogging suggest sharing consistently in a conversational tone and posting helpful information rather than a simple narrative. Your blog should be connected and linked to and from your website to drive traffic in both directions, increasing web traffic and your business’s credibility.

3. Incorporate Search Engine Optimization (SEO)

 

The best website in the world might be rendered obsolete if it’s not properly indexed and searchable by your customers. This is why search engine optimization (SEO) is so important for business owners. Improving SEO makes it easier for your customer and target audience to find your site, regardless of the size or focus of your business. SEO can be a complex area of digital marketing, which is constantly evolving. Working with a firm that specializes in this kind of online performance is often the best route for leveraging SEO effectively.

4. Distribute e-Newsletters

 

The costs and logistics of direct mail are quickly giving way to e-marketing. An e-newsletter is an efficient way to share information with your target audience and build brand awareness. It’s important to remember that this is a subtler marketing tool than, say, television ads or newspaper circulars. Information shared in an e-newsletter should help potential customers solve a problem or gain an understanding of a common issue, rather than bombard them with sales. An e-newsletter can be free to create and distribute and can be updated as often as needed. As your subscriber list grows, so will your customer reach.

5. Engage in Social Media Marketing

 

Social media is a focal point of digital marketing and continues to grow with the constant introduction of new tools. Using social media to advance your business is essential to a successful digital marketing strategy, and this can be achieved without incurring any major costs. By simply posting regular updates with quality information and practical tips on your Facebook or Twitter accounts, you will open the door to engaging conversations with your customers and potential customers. This type of activity increases visibility into your business and opens communication lines with a ready audience.

 

Online marketing isn’t the only option available to business owners, but it’s the fastest-growing and most dynamic method to interact directly with consumers. It might feel overwhelming to dive into using online tools to market your business, but you don’t have to do everything at once, and the benefits of using these tools effectively are endless. It is perfectly appropriate to test different approaches and campaigns to find the best and most effective options, as these tools are free or available at a very low cost.

 

Check out more small business marketing tips and financing advice from our lending partner Fundation.

 

Are you seeking alternative financing to start or improve digital marketing for your small business? Contact Fundation to learn about the short-term business loans available to your company. Fundation will never sell your loan, and it offers direct support and the highest level of service. 

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