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Why You Need Employment Practices Liability Insurance

From Karen Reed:

Karen Reed

Employment practices liability insurance (EPLI) provides coverage to employers against claims made by employees alleging discrimination, wrongful termination, harassment, or other employment-related issues such as failure to promote.

All businesses, regardless of size are vulnerable to employment claims regardless of the number of employees and statistics tell us the average cost for legal defense and compensation for this type of claim can quickly add up to $70,000.

Protect your business by calling us today to obtain a quote for this very important coverage.

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Meet Nate Van Lonkhuyzen, our 2021 Summer Intern

Abraham Dugal and Nate Van Lonkhuyzen

Abraham Dugal and Nate Van Lonkhuyzen

 

Nate Van Lonkhuyzen of Rockport is Allen Insurance and Financial’s 2021 summer intern.

Van Lonkhuyzen is an economics major at Colby College in Waterville class of 2023.

Allen Insurance and Financial’s summer internship program creates the opportunity to learn about each of the company’s insurance and financial planning departments. Van Lonkhuyzen’s desk is based in the Allen Financial division and he is working under the guidance of Abe Dugal, financial advisor.

“From my very first day, I have been able to see how what I am being taught in classes is applied in the real world with actual problems,” said Van Lonkhuyzen. “Abe Dugal and (company President) Mike Pierce have introduced me to the high quality, team-focused model Allen Financial maintains. My goal this summer is to learn as much as I can so I can further develop the analytical, interpersonal and problem-solving skills I need for a career in finance. “

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Health Care Reform: Dependent Coverage Up to Age 26

The Affordable Care Act continues to have an impact on health plans offered by employers. Our monthly overviews of topics addressed by the ACA endeavors to assist you with understanding your role and requirements as an employer. The Allen benefits division is happy to assist you with questions.

Under the ACA, group health plans and health insurance issuers that provide dependent coverage must make coverage available for adult children up to age 26. This ACA Overview summarizes this adult child coverage mandate.

HealthCare.gov

ACA Compliance Review Bulletin - image
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Start With the Exclusions

Chris Richmond, Allen Insurance and Financial

Chris Richmond

By Chris Richmond
Originally Submitted to WorkBoat Magazine

When a boatyard or builder makes an investment in purchasing a building most likely they will want to have the structure insured. But just because you purchase property coverage does not mean that your building is insured for all potential hazards. Two big exclusions on property insurance forms are flood and earth movement, both of which can pose a significant threat to your building.

First things first.  (This is a long sentence, but an important one.) The insurance definition of a flood is a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or two or more properties from overflow of inland or tidal waters, rapid accumulation or runoff of surface waters from any source, mudflow, collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents or water exceeding anticipate cyclical levels that result in a flood as defined as above.

If you have a bank loan on your property, most likely the bank will require you to have this flood coverage for at least the amount that is on the loan.  Coverage can be provided through The National Flood Insurance Program. Your premium will vary depending on what flood zone the property is in.

While people talk about earthquake coverage, in the insurance world it actually is referred to as “Earth Movement,” with earthquake being just one of many categories. Besides earthquakes being excluded the Earth Movement list includes landslides, man-made mines, earth sinking and volcanic eruption. Depending on your location, coverage for this can be either bought back from your carrier or as a stand-alone coverage through a specialty broker.

Sage advice when looking at your insurance policies: Start with the exclusions. While it is important to know what you are covered for, it is equally important to know what your policy does not cover. Don’t think that just because you have an insurance policy that everything is covered. Have a conversation with your agent about your coverages to make sure you have what you need.

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Beware of Spoofed Calls and Scam Email

Scam emails and spoofed phone numbers are plentiful these days − we should all be ready to deal with them on a daily basis. It’s important to take care to verify the source of any request for your attention or your money – even if the request seems to be from a co-worker, friend or family member.

The criminals behind these efforts use the names and spoofed phone numbers of trusted entities to try to part you and your money and nobody is immune. We’ve even had recent reports of spoofers pretending to be calling from Allen Insurance and Financial in an attempt to scam the unaware.

These calls and emails are from people who want your money or your personal information or to hold your computer for ransom. We all want to help a loved one, friend or colleague – but the key is to slow down and check a few things before replying or taking further action.

Spoofing is when someone disguises a communication as coming from a known, trusted source. Spoofing can apply to emails, phone calls, and websites, or can be more technical, such as one computer spoofing another computer or a website.

Also known as phishing, scam emails pretend to be from someone you know – but the return email address is not quite right (by a letter or two) or completely wrong and may ask you for gift cards to for “help with an important task.”  The return email address could also be exactly right and from someone you know – but the request is for money or assistance.

To avoid spoofing:

  • Don’t answer calls from unknown numbers. If you answer such a call, hang up immediately.
  • If you get an inquiry from someone who says they represent a company or a government agency, hang up and call the phone number on your account statement, in the phone book, or on the company’s or government agency’s website to verify the authenticity of the request.

The Federal Trade Commission offers lots of good advice on how to avoid spoofed phone calls. ftc.gov/spoofing.

To avoid emails scams:

  • Always think twice before clicking – whether it’s opening an email or an attachment.
  • Double check return email addresses. If something doesn’t seem right, or too good to be true, or of an urgent nature, pick up the phone and call the sender of the email to verify. This one extra step can make a real difference.
  • Don’t open attachments to emails from people you don’t know.
  • Read the email carefully. Does it sound right or is the text out of character?
  • Never send your birth date or social security number by email.

More from the Federal Trade Commission: https://www.consumer.ftc.gov/articles/how-recognize-and-avoid-phishing-scams

Allen Insurance and Financial and L.S. Robinson Co. will never call or email to ask you to sign up for a credit card, purchase a medical alert system or to send us gift cards. Clients and members of the public should feel free to call us at 236-4311 to see if a correspondence or phone call actually came from our office.

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Donation to Pacific Engine Company

Dan Bookham and Jason Peasley of Rockport Fire Department
Dan Bookham of Allen Insurance and Financial presents a donation to Rockport Fire Chief Jason Peasley for use by the Rockport, Rockland and Camden fire departments to promote and offer free home fire inspections, smoke detectors and other help to residents of the three communities.

Allen Insurance and Financial recently delivered a donation to the Rockport, Camden and Rockland fire departments for their home inspection and smoke detector program.

“We’re in the business of helping people in our community protect their homes and their families – and so support for a program such as this, with its emphasis on health and safety, is very important to all of us at Allen,” said Dan Bookham, vice president at Allen Insurance and Financial. “This three-department cooperative effort is a project with an immediate impact and can continue to make a real difference.”

The donation is the result of a partnership between Allen Insurance and Financial and the community outreach program at MMG Insurance, the Presque Isle-based insurance carrier.

Chief Jason Peasley of the Rockport Fire Department says the program is ongoing, and donations will be accepted by any of the three departments at any time. He said that since the spring, 22 homes in the area have been inspected and fitted with smoke detectors – but that the need for this work continues.

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Charitable Giving in 2020…and 2021?

Sarah Ruef-Lindquist

Sarah Ruef-Lindquist, JD, CTFA

By Sarah Ruef-Lindquist, JD, CTFA

We love June, don’t you? Temperatures are warmer, flowers are blooming, and this year especially, many people are getting out and enjoying each other’s company and all that Maine has to offer with understandable pent-up enthusiasm.

Every year in June, the news includes the annual report about charitable giving in the US. The GivingUSA Foundation publishes GivingUSA with data about charitable giving activity in the prior year, based on income tax return data. The news has been positive year-on-year for a long time now.

Will it be for 2020?

As a preview Marketwatch reported interesting giving behavior during the early pandemic months of 2020: They reported that 2020 got off to a great start, but then as the pandemic hit, giving plummeted.

Then, it rebounded. A lot. At a time when millions of Americans were losing their jobs and could not make rent or mortgage payments.

It would seem there was a swift recognition of the challenges being faced, and generous response to help meet the need. “Some people even donated their stimulus checks. Protests over racial injustice last summer spurred another outpouring of donations.”

Using data provided by Blackbaud from a large and representative sample of non-profits “Not only did overall giving increase, but so did the average size of people’s donations, increasing to $737 from $617 in 2019.”[i]

According to prior GivingUSA reports, US charitable giving totaled for 2019 was $450 billion. 2018 was $428 billion. 2017 was $410 billion. 2016 $390 billion. See a trend here?

Neither Blackbaud nor Marketwatch try to predict what the total giving will be for 2020, but instead await the June 15, 2021 release of that data by GivingUSA. We will, too.

We are almost half-way through 2021. What could help boost giving in 2021? The stock market is nearing record highs and those are always opportunities to consider charitable gifts of appreciated securities, to reduce capital gains exposure, or to create charitable remainder trusts to provide income and immediate tax deductions while deferring and reducing gains exposure.

As congress considers further changes to income tax laws, there are several pending provisions of interest including a possible charitable remainder trust option for up to $100,000 of qualified charitable distributions from IRA’s (these had previously been limited to only outright gifts to charity). Stay tuned about those.

There are many reasons to be optimistic about charitable giving in the US. As you renew in-person meetings with your supporters, we hope they are as rewarding and productive as ever.

[i] Blackbaud’s analysis was based on its 8,833 nonprofit clients, which took in a total of $40.7 billion in donations in 2020. That’s only one slice of the giving pie in the U.S, where there are roughly 1.5 million nonprofits, but the Blackbaud data set is the largest sample size of giving and is representative of the nonprofit sector as a whole, a spokeswoman said.

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Tool Coverage 101

By Patrick Chamberlin

Contractors rely on their tools and equipment to get the job done. To protect these tools from theft or vandalism, there’s Tools and Equipment Coverage.

Tools and equipment insurance can cover both large equipment and small hand tools.

Most commercial property policies cover buildings and personal property at your premises or within a short distance. Tools and Equipment coverage is designed to cover movable property wherever it may be located.

Smaller items, generally with a value of less than $1,000 can be covered on a blanket basis. You’ll want to list higher-value items (generators, heavy equipment such as excavators) individually. It’s also important to keep an inventory (with photos, if possible) and proof of purchase.

As always, there are some exceptions and limits to this type of coverage. Your insurance agent can explain more.

Patrick Chamberlin, CIC
Patrick Chamberlin, CIC
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Age Discrimination in Employment Act (ADEA)

What do you know about the Age Discrimination in Employment Act (ADEA), which prohibits employers with 20 or more employees from discriminating against individuals who are age 40 and older based on age?

Here are some of the basics:

 The ADEA prohibits age discrimination against employees and applicants age 40 and older.
 Age limits and preferences for workers under 40 are prohibited unless an exception applies.
 An age-neutral employment practice may violate the ADEA if it negatively affects individuals age 40
and older.
 Older individuals may be favored over younger ones, even if the younger ones are 40 or over.
 Employees may voluntarily waive their rights under the ADEA.

You can read more now on this PDF. 

Bulletin: Age Discrimination in Employment Act
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Unsure When to Claim Social Security? Timing Has Its Benefits

For many Americans, social security benefits make up a significant portion of retirement income. When it comes to how much you will receive, you may be surprised to learn that you have a choice in the matter—and timing is everything. The longer you wait to claim your benefits, the larger your monthly payment will be, so when you start can determine whether you’ll have sufficient funds to achieve your retirement goals.

Here are considerations to keep in mind as you think about your social security choices.

When Are You Eligible?
Based on the year you were born, the Social Security Administration (SSA) has determined your full retirement age (FRA)—in other words, the normal retirement age at which you become eligible to receive full social security benefits. If you were born before 1955, you’ve already reached your full retirement age (see Figure 1). If you were born after 1960, you’ll reach your FRA at age 67.

Figure 1. Full Retirement Age (FRA)

If you were born in: Your FRA is:
1937 or earlier 65
1938 65 and 2 months
1939 65 and 4 months
1940 65 and 6 months
1941 65 and 8 months
1942 65 and 10 months
1943–1954 66
1955 66 and 2 months
1956 66 and 4 months
1957 66 and 6 months
1958 66 and 8 months
1959 66 and 10 months
1960 or later 67

 

The Early Bird Gets . . . Less
Although your FRA serves as the baseline, you can claim your social security benefits at an earlier age. Keep in mind, though, that taking your benefits early will permanently reduce the amount you receive.

Let’s say your FRA is 66 and your monthly benefit amount is $1,000. If you decide to take benefits at age 62, your monthly benefit will be permanently reduced by 25 percent. That might be a hefty sum to leave on the table, so remember that you have up to 12 months to withdraw your application for benefits if you change your mind.

Good Things Come to Those Who Wait
If you don’t need the cash when you reach your FRA, you can opt to delay your claim—and the SSA offers an economic incentive to do that. Should you decide to wait until after you’ve passed your FRA, the SSA compensates you for allowing those funds to stay in its reserves by guaranteeing an 8 percent increase in benefits for each year you delay, up until age 70. So, if you wait until 70 to claim benefits, your payment will be 76 percent more than what you would have received if you claimed early at 62. If you’re in a position to do so, it literally pays to wait.

Remember, though, that the maximum benefit amount you can receive tops off at age 70, so there’s no financial motivation to delay your claim past then.

Deciding the Right Time for You
Claiming your benefits as soon as you reach your FRA shouldn’t be a given—nor should holding out longer for a bigger benefit. The right timing depends on your specific circumstances, and there’s a lot to consider.

Life expectancy. Longer life expectancies are a large factor in determining the best claiming strategy, so a break-even analysis—the age when your cumulative benefits will even out—can provide helpful insight. Handy life expectancy calculators and benefits calculators are available to help you estimate your benefits based on the age you want to make your claim.

Your spouse. Married couples should consider various strategies for maxing out benefits. If you’re the primary earner, you’ve been married at least one year, and your spouse is at least 62, your spouse may qualify for a spousal benefit of up to 50 percent of your FRA benefit when you make your claim. Although your dependent spouse receiving a benefit won’t affect the amount of your benefit, keep in mind that if you make an early claim, your spouse’s benefit will also be reduced. The flip side is, if you wait until age 70, you maximize benefits for both of you—and potentially the survivor benefit for your spouse.

If you have two incomes, for example, depending on your benefits estimates, you might consider making your claims at different times. It may make sense for the lower earner to take benefits first when they reach their FRA, and the higher earner to wait until age 70 because their increases will amount to more over time. Depending on life expectancy, this approach could also mean a higher survivor benefit for the lower earner should the higher earner pass away first. Note, however, that your spouse’s benefits will be permanently reduced if they apply before their FRA. (There is an exception if they are caring for a dependent child younger than 16 who has a disability, making them eligible for dependent benefits.) For dual earners born before 1954, you can opt to apply for only the spouse benefit and delay taking your own benefit until a later date.

If you and your spouse have similar lifetime earnings, each of you might want to wait until age 70 if it’s financially viable. This positions both of you to receive the maximum amount and ensures that one of you receives the highest possible survivor benefit after the other passes away.

Tax implications. Because some of your social security benefits may be taxable, depending on your income, some people may factor the tax impact of their claiming strategy into their decision-making process.

Keep in mind, if you or your spouse worked at a job at which you didn’t pay into social security because you were earning a pension, your retirement and your spousal/survivor benefits may be affected by the Windfall Elimination Provision and Government Pension Offset. (This is common for teachers and government employees.)

The Math Is Personal
Depending on your specific financial situation, deciding when to claim your social security benefits may have a significant impact on your retirement goals. Time may be on your side if you’re looking to maximize your benefits, but the choice can be complicated; it depends on your health, family circumstances, and overall financial wellness. We invite you to talk with us about the various ways we can support your retirement goals. For more detailed information about benefits, call the SSA at 800.772.1213 or visit www.ssa.gov.

This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a tax preparer, professional tax advisor, or lawyer.

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