Insurance

We have all heard the jokes about Maine weather, and none of us would be without the essentials: our snow shovel and an umbrella. The question is: Do you have the right kind of umbrella?
You are responsible for bodily injury, property damage and personal injury caused to another person by you, your dependents, even your pets. Your home and auto liability have limits to what and how much they will cover in the event that you are sued. A Personal Umbrella Policy not only raises the dollar limit above and beyond your current policies, but also broadens what will be covered.
This is the way it works: Let’s say your homeowners policy has a limit of $250,000. You have a pool and a neighbor’s child is injured while swimming.The neighbor sues you. The case is lost and your neighbor is awarded $400,000.
Your homeowners liability kicks in and pays your limit of $250,000. On top of that the policy pays the attorney fees you racked up to defend you in court. But what about the $150,000 not covered? If you have an umbrella policy, it kicks in where the homeowners left off and pays the balance of the award up to its limit. If you do not have enough coverage on your homeowners policy and if you do not have an umbrella, the remainder of the award comes from you. Your paycheck, your house, your car, your assets!
One of the best aspects of an umbrella policy is that because they do not start to pay until the limits of your home or auto policy have been exhausted, they are very reasonably priced. On average you can purchase a $1 million umbrella for less than $150 a year.That’s a little more than $12 a month.
Only you can make the decision that best suits your needs. Individuals with teenagers, pets, pools, who volunteer in civic groups or who own a business should give careful consideration to the need for additional liability coverage.

What is Directors & Officer Liability Insurance?
Directors and officers liability insurance protects past, present and future directors and officers of  non-profit  organizations  from damages resulting from alleged or actual wrongful acts they may have committed in their positions. The policy provides protection in the event of any actual or alleged error, misstatement, omission, misleading statement, or breach of duty.
What does Directors and Officers liability insurance cover?
Criminal, administrative, civil, and regulatory proceedings based on actual or alleged acts, errors, omissions, misstatements, neglect, or breach of duty committed or allegedly committed by a director or officer are covered with Directors and Officers liability insurance.
Why is Non-Profit Directors & Officers Liability Needed?
1.    To protect the  personal assets of board and committee members
2.    Maine statutory immunity does not apply to the types of claims that arise out of actions as a board or Committee member
3.    The Personal Umbrella carried by a Board Member may  not extend over their actions on the Board or its committees
4.    The bylaws of the organization require that the entity protect and indemnify the board member  in the event of a suit against them.  This obligation is fulfilled by the organization carrying D&O coverage including  Employment Practices Liability.
5.    D&O claims are not covered by the organization’s general liability policy
By volunteering, you’re helping take care of others
If you sit on the Board of Directors of a non-profit organization, you have gone out of your way to help others  Make sure you take care of yourself, too.  Every board member should request an annual review of the organizations bylaws and  directors & officers liability Insurance.  This will be beneficial for current and new members and provide an opportunity to ask questions.
By Richard Crossman, CIC, CRM

The Employee Retirement Income Security Act, commonly known as ERISA, was enacted in 1974 to address public concerns that funds from private pensions needed protection from mismanagement and abuse. Many employers offering employee insurance benefit plans are unaware that provisions of this Act apply to all plans, not just pensions.
What Employers are Subject to ERISA?
Most employers who are corporations, partnerships, sole proprietorships and non-profit organizations are subject to ERISA. Explicitly exempt from the rule are governmental and church plans. There is no exemption from compliance for employers based on size.
ERISA identifies the following common insurance plans as being subject to its jurisdiction:
• Medical, surgical or hospital benefits
• Sickness, accident, disability, or death benefits
Some benefits offered through payroll deduction are considered “voluntary,” and paid 100% by the employee such as supplemental life insurance, critical illness, accident or cancer benefits, are considered exempt from ERISA. However, as an employer if you have any participation in the selection of the vendor or promotion of the program, these benefits will not maintain that exemption.
What is the most common ERISA error?
Every ERISA plan must have a written plan document describing the benefits being provided. Some plans may exist without this document. If so, the plan will be out of compliance and could be subject to violation fines and penalties.
Many employers erroneously believe that their insurance contract is the written plan document. While these contracts and certificates of coverage contain part of the information requirement of the plan document, an audit by the Department of Labor would consider this incorrect. A simple solution to this issue is to work on a form called a “Wrap SPD document.” This incorporates most of the missing information, together with the insurance certificates, to meet all of the required ERISA elements for the plan document.
The broad requirements of ERISA additionally include reporting and disclosure, recordkeeping, and fiduciary requirements.
*There are many businesses, including Allen, who can assist you with an ERISA compliance audit. Because of the recent uptick in Department of Labor audits, and the size of the penalties involved, we recommend you start working with a benefits professional as soon as possible.
BY Sherree L. Craig, CEBS.