The 7 traits of effective risk reduction leadership in your organization

I read an article the other day titled “The 7 traits of effective leaders”. I totally agree with the article, but started thinking about how these traits relate to effectively reducing risk within a business. Here are some thoughts on this topic:

1) Make others feel important about their role in risk reduction

If all the directives and ideas about risk reduction come from you, how effective will they really be? The best ideas always come from the people that are closest to the action.

2) Promote a vision about risk reduction

Followers need a clear idea of where you’re leading them and they need to understand why that goal of risk reduction is valuable to them. Your job as a leader is to provide that vision.

3) Follow the Golden Rule

Treat your followers the way you enjoy being treated. An abusive leader attracts few loyal followers. If you are going to get people excited about risk reduction, they need to believe in you as a leader.

4) Admit mistakes, whether related to risk reduction or not

If you have made an error that leads to higher risk or losses for your company, ‘fess up! If people suspect that you’re covering up your own errors, they’ll hide their mistakes, too, and you’ll lack valuable information that can help you reduce more risk in your organization.

5) Criticize others about losses or potential losses only in private

Public praise encourages others to excel. If someone prevents a claim or reduces a claim, praise them to everyone! However, public criticism only embarrasses and alienates everyone, and discourages others from reducing risks within their area.

6) Stay close to the action

You need to be visible to the members of your organization, and they need to know you care about reducing risk within your business. Talk to people, visit other offices and work sites, ask questions, and observe how business is being handled, and what potential losses are prevalent. Often you will gain new insights into your work and find new opportunities for motivating your followers.

7) Make a game of competition with risk reduction

The competitive drive can be a valuable tool if you use it correctly. Set team goals, and reward members who actually perform at reducing risk within the business. Examine your failures, and celebrate your group’s successes.

Risk and the Meaning of Risk:

When most people think of “risk” they associate a negative connotation with the word, and assume that risk is inherently bad. However, lets take a closer look at the definition of risk, and the possible impacts it has on a business project. A risk is defined as "an uncertain event or condition that, if it occurs, has a positive or negative effect on a project's objectives." While most focus on the negatives of risk, they fail to take into consideration the positives associated with the term. As experienced “Risk Managers”, Commercial Risk Service is able to not only protect your business from the potential negatives, but we see the positives in a risk management plan that allows for more business profitability. Like the phrase states “the higher the risk the higher the reward”, it is our job to find that balance in risk vs. reward, protecting your business first (risk) and increasing your profitability second (reward).

Within a risk management plan there is usually a “risk strategy” and finding this “strategy” that fits your business is vital to the outcome of different business projects or your company as a whole. There are four different strategies when it comes to risk management and they are; accept, avoid, mitigate, and transfer. Each project your company undertakes needs careful consideration as to how the project will manage that risk. If the strategy that is in place currently is not correct it could be costing you thousands of dollars, and possibly putting your entire company in jeopardy. Commercial Risk Service knows risk management and we are experts in risk strategies. Maybe it is time you had an expert examine just how your company handles risk-both the positives and negatives.

Commercial Risk Service
Risk Specialist
Clay George

Harassment Remains Major Workplace Problem

You would think that in the “enlightened society” we live in today, we should be past having any problems with harassment issues in the work place. Oh yea- ever heard of Herman Cain? He is just another in a long line of employers- those that are well-known and those that are relatively obscure- that have created issues in the workplace with sexual harassment.

Let’s think about it- what issues do we have to deal with now that may add to our harassment risk in the workplace?

---Greater informality in today’s workplace
---Widespread use of social media
---Knowledge by the working class of exactly what harassment is

Experts say employers should use a strong policy, training and an accessible complaint program to discourage and address sexual harassment. While the number of sexual harassment complaints filed with the U.S. Equal Employment Opportunity Commission fell 7.7% in 2010, sexual harassment remains a significant problem. According to the EEOC, there were 11,717 sexual harassment charges filed in 2010. What is worse, 64% of organizations received at least one sexual harassment claim in the previous two years.

However, the types of sexual harassment have changed over the past 20 or 30 years. Where previously it was more common to see where women were asked for “sexual favors in exchange for some employment benefit, now the vast majority are hostile environment theories. While the means may be different, with today’s use of text messages, emails, Face book posts and tweets, as long as we have males and females in the workplace, this sort of activity will probably continue.

The proliferation of texts and emails has also increased the risk of issues concerning sexual harassment. People are becoming more comfortable sending inappropriate material via an email or text message than they would in person. Now you can harass someone without seeing them or touching them! You can create a sexually hostile work environment via email from the floor below or the office next door. There are also instances where people may not intend for something to be harassment, but it may very well be perceived that way; and sometimes people just don’t think.

What is the best practice for confronting sexual harassment?

• A strong training policy

Employers should be sure they have updated, sophisticated social media policies that address the role social media may play in sexual harassment. Anti-sexual harassment policies should be updated to reflect today’s social media, and social media policies should address its potential role in this area.

One thing that training supervisors need to be aware of is that they can be held personally liable for sexual harassment.

Even if the company has insurance or provides a defense, the company cannot provide them with coverage for punitive damages.

• A readily accessible complaint procedure

You have to develop a culture where people feel they don’t need to put up with sexual harassment, where employees can let someone know and something actually will be done about it. There should be frequent and regular communications with the employees, and I don’t mean standing up in front of a room and lecturing employees about it. It requires being truly “out on the floor” communicating with everyone.

• Responsive investigations

An easily accessible complaint and investigation procedure also should be in place. Employees should also be able to make the complaints anonymously if they feel they need to do so.

• A corporate culture that discourages sexual harassment

Sexual harassment simply put can’t be tolerated at any level. If that culture is created throughout the organization, you have much less chance of having a problem.

Sexual harassment is still a major issue, but one that can be dealt with relatively successfully if handled up-front and consistently.

Bobby Bland PWCA, CIC
Vice President
Commercial Risk Service

Is it "at-work" or "working-out"?

The American Heart Association says that walking 10,000 steps per day can help reduce the risk of stroke by 70%, and initial heart attack rates by 90%. The American Diabetes Association says that walking 10,000 steps per day can help reduce Type II diabetes by 50%.

Companies investing in the walk-at-work movement machines are the newest craze. Several manufacturers are producing desks that will accommodate treadmills so the employees can exercise WHILE THEY WORK! Many companies, such as AOL, AAMD, BestBuy, Bristol Myers-Squibb, Coca Cola Bottling, Consona, Eli Lilly, Microsoft, Pixar and Toyota are trying out this model.

Even in our office, Beth Bowman, whom many of you know, came to me with a proposition. She wanted to STAND at her desk all day instead of sitting. She was having back problems, and she believed it was partly because of sitting all day. We

accommodated her, and raised her desk enough that she can stand all day. She doesn’t have a treadmill under her desk, but I am happy to report that all of her previous back ailments are gone! She believes a large part of these results are because of standing all day instead of sitting. It also burns more than 700 additional calories daily as well!

However, companies investing in the walk-at-work movement could expose themselves to employees filing cumulative trauma claims, said worker’s compensation expert Paul Braun, with AON Global Risk Consulting. “The very simple issue around this type of exposure is that if somebody gets hurt at work and the company has this kind of arrangement, the claim will be accepted; there’s no way around it.” Braun said.

There is a conditional trade-off here- on the one hand, you are helping employees to exercise more and maintain a healthier lifestyle, which in the long run could save you on your group health plan. In addition, you have created a happier, healthier employee that is probably more productive in the long run. On the other hand, the simple fact that you are helping employees to walk while working could open you up to more exposure from a Worker’s Comp standpoint. (Even if a person was running every night after work and they were diagnosed with an ailment from too much stress of running, the injured employee could still maintain that the injury was sustained at work, and it would be paid.)

Don’t get me wrong- I think it is a great idea. However, you need to know what you are getting into when your employee wants to “walk at work”!

Bobby Bland PWCA, CIC
Vice President
Commercial Risk Service

ID Theft is up 34%- What can we do?

The number of U.S. households and businesses that fell victim to some kind of identity theft rose to 8.6 Million in 2010, costing the victims about $13.3 Billion, the U.S. Bureau of Justice Statistics said Wednesday.

Each person or business who reported a dollar or more in identity theft lost an average of $8,200 in 2010. About 7% of all households were victimized and 11% of businesses were victims as well, which is up from 5.5% in 2005. From 2005 to 2010, the misuse of an existing credit card account was the fastest-growing type of identity theft. Reports of credit card information stolen from businesses and people’s trash, and from legitimate card readers by devices attached to machines such as ATMs that record the information for use later also made up a large portion of the losses. Many of these cases involve relatives, roommates, or in the case of businesses, an employee stealing information from people close to them. Also, Internet shopping can put more people at risk.

We recently had one of our business customers that fell prey to identity theft. The business’ credit card was stolen from their mailbox before the owner could retrieve the mail. By the time they found out about it, this theft had fraudulently bought over $22,000 worth of merchandise. As business owners, what can you do about this growing problem? What safeguards are available to you? Here are a few:

1) Make sure when you order something with your business credit card that it is on a secure data line. There are ways to check this before ordering.

2) Be aware of charges to the credit card, and have a limit set where the card company will automatically contact you when a purchase is made over that limit.

3) Many credit cards are stolen through the mail, with thieves taking the cards as they are sitting in the business’ mail box. Make sure you have a P.O. Box for all that type of mail to be sent to. NEVER put your actual physical address on the return addresses part of the envelope- only your P.O. Box number.

4) Use common sense- be involved in the use of your company credit card, and limit access to the card to a bare minimum.

5) Make sure you have purchased crime coverage for your business. If should include Blanket Employee Dishonesty and theft of property.

As business owner’s, we must all be aware of the consequences of identity theft. If can be devastating.

Bobby Bland PWCA, CIC
Vice President

Commercial Risk Service

ADA to Crack-down on Hotel Industry

Back when I was playing in baseball tournaments and traveling every weekend, we had to stay at different hotels in strange and non-familiar towns. One reprieve from being out in the sun all day was getting back to our hotel and going straight to jump in the pool-it was amazing! However, unless hotel owners are ready to shell out some major money, the days of enjoying a hotel pool may be over.

The Department of Justice along with the American with Disabilities Act have imposed some new strict regulations concerning hotel pools. Taking effect March 15th, 2012 if you do not have an ADA compliant chair lift at every one your pools and hot tubs, you will be forced to shut it down or face potential fines.

Let’s clarify what they are expecting of hotel owners to purchase to meet these new requirements: They are mandating that every pool has an ADA complaint chair lift to assist people with disabilities getting in and out of the pool. If you have more than one pool, this requires you to purchase more than one lift, and after pricing these items out, it can get extremely expensive. At an average price of $5,000 dollars, this new ADA requirement could be devastating for your business. There are several hotels in Arkansas that have decided to shut down their pools and hot tubs all together instead of purchasing multiple chair lifts.


This is a major decision hotel owners are going to have to make in the near future, and it could be one that would affect your entire operations. No matter what the decision you come to, the question is are you prepared?

Clay George
Risk Specialist
Commercial Risk Service

John Wooden: The Path to Greatness

After his death last year at age 99, accolades poured out for John Wooden, the greatest men’s college basketball coach ever. Wooden had 11 national titles. Collectively, the four coaches with the next most have 13!

“What Coach Wooden did will never be touched”, says one of the all-time great coaches, Mike Krzyzewski. “You can have a pretty good argument about who is the second-greatest college coach of all time. There’s absolutely no argument about who is the greatest”. In 27 years at UCLA, Wooden sometimes won with more talent and sometimes with markedly less. Here are some glimpses of his greatness:

On skill: Wooden insisted on mastering details He believed that “We are what we repeatedly do.”

On discipline: Wooden might say, “You don’t want to be late coming back.” If the player was late, he’d be benched for the game. One star, Bill Walton, arrived for his final season with wild hair. Wooden said “Bill, that’s not short enough. We’re sure going to miss you on this team.” Walton rushed to the barber.

On winning: He was a ferocious competitor whom Walton called a “caged tiger.” Before playing Duke in 1964, he asked his team, “How many of you remember who finished second last year? They don’t remember who finished second.”

On worth: Sports commentator John Feinstein tells the story from 1984 when Wooden wheeled around his ill wife, Nell, at their last Final Four together, visiting friends. As they were leaving the hotel lobby, they drew a spontaneous ovation from all the other college coaches. Asked about it in 2006, Wooden said, “There is nothing like the respect of your peers.” Feinstein said, “As a coach, he had no peers. And he was a better man than he was a coach.”

Here’s my question:
All of us run or help run businesses. Are you insisting on the discipline that John Wooden demanded? Are you as focused as you need to be on all areas of your business? Are you creating the quality within your organization that you need to do? Are you treating your employees the way you would want to be treated?

If not, maybe now is the time to start. John Wooden was not a “Great Man”, just a man that did great things every day.

Bobby Bland PWCA, CIC
Vice President
Commercial Risk Service

"We Didn't Come Here To Paint"! Play it safe... or go for it?

The phrase “We Didn’t Come Here to Paint” is something that Arkansas football coach Bobby Petrino used once to describe his “go for it” mentality. Let’s dig a little deeper and see if “going for it” works in football, as well as in business:


Economist David Romer noticed that football teams tend to play it safe in fourth-down situations, punting or attempting a field goal instead of continuing to drive for a touchdown. People say they’re willing to fight hard for what they hope to achieve, but their actions undercut their words. So, in research he did for the University of California, Romer isolated one question: Should teams punt or attempt a field goal on fourth down, or take bigger risks by running or throwing it?

His results:

Through statistical analysis, Romer found that teams should “go for it”- whatever down, whatever the score and whatever side of the field they’re playing on. On average, teams willing to take chances seem to win more than lose. Why?... Owners and fans (in your business, think business leaders and customers) only want to win. They love the results of Romer’s research. They get it. NFL coaches (in your business, it’s Managers) mainly want to avoid screwing up. They’re scared of trying and failing. They don’t get it.

Also, I have coached a 6th and 7th grade football team for years. Our mentality with players of that age is that “we don’t punt”. At that age, only bad things happen when you back a punter up 15 yards and ask a center to snap it to him. What I have noticed is that because we have the mentality that we will be “going for it” on 4th down, our whole dynamic changes on 3rd down as well. Instead of starting the process of “shutting down our aggressiveness”, we begin to think bigger and more long term. I think your players are more aggressive when they know that you will be “going for it”. The same thing should hold true in your business. When you have a conservative approach as a manager, your employees tend to follow. If, on the other hand, your employees know that you want to get the most out of your opportunities and that you trust your employees to make it happen, they automatically will respond in a more aggressive mode, and they usually are more successful.

Bottom Line:

Fear of failure causes failure. Go for it! Your fans, or your customers in the case of your business, will love you for it. Guess who else loves to “go for it”?...

The Players (or in your case, the employees of your business). If they know you have faith in them and are willing to take a chance on them, their performance automatically goes up.

Want to win on the football field or in business?---GO FOR IT!

Bits of Wisdom

If you gathered 100 experienced managers together and asked for their advice, they probably wouldn't say much about "competing values models", "temporal rhythms", or any other big terms you hear about in business school.

Instead, this is a good idea of what you’d hear:

Don’t be afraid of the phrase, “I don’t know”.
If you don’t know the answer, don’t try to bluff. If you’re at fault, take the blame. If you’re wrong, apologize. A wise person once said, “If you always tell the truth, you never have to remember anything”.

Never Gossip
And if someone wants to gossip with you, politely say you’re not interested. This corporate adage rings true; When someone gossips, two careers are hurt- the person being talked about, and the person doing the gossiping.

No task is beneath you
Don’t think you are above anything. Be the good example and pitch in- especially if the job is one that nobody wants to do.

Share the Credit whenever possible
Managers who spread credit around look much stronger than those who take all the credit themselves.

Ask for help
If you think you’re in over your head, you are! Before it gets out of hand, ask someone for help- most people enjoy giving a hand. Besides saving yourself from embarrassment, you’ll make a friend and an ally.

When you don’t like someone, don’t let it show
This goes especially if you outrank them. Never burn bridges or offend others as you move ahead. It could come back to bite you!

Let it go
What shouldn’t happen often does; You weren’t given the project you wanted, you were passed over for the promotion you deserved. Be gracious and diplomatic… and move on. Harboring a grudge won’t advance your career.

When you are right, don’t gloat
The only time you should ever use the phrase “I told you so” is if someone says to you- “You were right”.

Worker's Compensation Leave- Be Careful!

Problem: When an employee is out on Worker’s Compensation leave, it can be downright puzzling to figure out whether the FMLA or the ADA also applies.

Solution: Learn how to balance the different requirements and leave benefits under all three laws, and closely track the worker’s recovery.

When an employee goes on worker’s compensation leave, your legal antenna should go up right away. That’s because an employee who has suffered an on-the-job injury may also be considered disabled under the ADA and has a serious health condition under the FMLA. The complexity of the ADA/FMLA/worker’s comp “Bermuda Triangle” has created much misunderstanding and myths about how to handle disability leave. Make sure you coordinate any unpaid leave and reasonable accommodations, such as light-duty work or intermittent leave, in handling worker’s comp, ADA and FMLA claims with your insurance carrier.

Start the “FMLA clock” right away
Many employers confuse their obligations under the FMLA and their state’s worker’s comp law. In many cases, worker’s comp absences also qualify as FMLA leave when the injury is deemed a serious health condition (one that usually requires continued treatment by a health provider). When an injury does qualify as an FMLA-covered serious condition, you should promptly notify the employee that the time missed for a worker’s comp injury will run concurrently with his or her FMLA leave. Otherwise, you would enable the employee to take 12 weeks of FMLA leave as long as his or her serious health condition continues. But your worker’s comp insurer can limit or terminate claim payments if the employee refuses to accept a light-duty assignment. Key point: Employers can usually require employees on FMLA leave to exhaust all of their accrued leave before being placed on unpaid leave. However, if an employee is already getting worker’s comp benefits, you can’t make him or her use paid leave.

Double-check the ADA
Once you’ve determined whether a worker qualifies for FMLA leave, there’s another step to take. You must decide whether the employee’s on-the-job injury meets the ADA’s definition of a disability: i.e., any physical or mental impairment that substantially limits a major life activity. If so, an employee returning from leave may also qualify to receive reasonable accommodations under the ADA, such as modifying the employee’s work schedule of work environment, or even permitting additional time off beyond the leave already taken.

As you can see, this is a very complicated issue- and this is just the tip of the iceberg! Make sure and contact a Worker’s Compensation advisor, as well as your insurer when something like this situation occurs.

Bobby Bland PWCA, CIC
Vice President
Commercial Risk Service

Management Goal Setting: From SMART to WISE

As a leader, you’re used to setting goals. But are the goals you’re setting really as powerful as they could be? Goals help us to cut through the clutter of a crowded mind and keep our thoughts on the things that matter most. They help us focus. To be effective, you can’t just set random goals the way many people do- long lists of wishes that pop up at random and eventually fall away.


In the business world, we’ve been trained to set SMART goals: specific, measurable, action-oriented, realistic and time-bound. “SMART” goals have helped many people move from vague unattainable goals to clear, specific action.

The problem with SMART thinking is that it has a tendency to limit instead of inspire. SMART goals can work against you if:

• You neglect to write them and keep them fresh.
• They’re isolated from other important parts of your life.
• They conflict or compete.
• They lack spirit and conviction.

To avoid these pitfalls, make sure your goals are both SMART and WISE. WISE goals are written, integrated, synergistic and expansive. Using these criteria to improve your goals will transform them into a more powerful approach.

Written
Writing your goals is a critical step- and one many people miss. Writing forces you to be clear in your thinking. It allows you to look at your plans with objectivity. It instills commitment and puts your thoughts in a durable form you can revisit again and again.

Integrated
Integrating your ideas means bringing them together in the same place so you can look at them all at once. Allow your personal and professional lives to intermingle. It’s okay if right under “increase profit share” you have “get more rest”. They both improve your quality of life. They both contribute to your definition of success.

Synergistic
Whereas integrating your goals means bringing them together, synergizing means making them work together. Synergy happens when one ideas advances another. Keeping a vision of what you want in mind when you think about your goals will help create that synergy.

Expansive

Think big. Your goals should inspire you to stay on the path to your dreams, not lock you into a pattern of ticking off bite-sized action items from here to retirement. This may be the biggest differentiators between
SMART and WISE thinking. Spending too much time and energy boxing your objectives into a hard and fast formula can squeeze the life out of them. Some examples:

SMART Goal- Schedule team-building and strategic planning off site by the end of January.


WISE Goal- Transform my staff into a team of inspired, empowered partners.

SMART Goal- Leave work by 6:00 P.M. three times a week, organize my office and work with my assistant to find new planning system in one month.

WISE Goal- Feel in control of my life.

SMART Goal- Go on a date with my wife at least twice a month and tell her why I appreciate her at least once a day starting September 3rd.

WISE Goal- Fall in love again.

The best goals are both smart and wise. SMART thinking gives your goals specificity. WISE thinking gives them heart.

How do you set your goals for your organization? Let me know what works for you.

Bobby Bland PWCA, CIC
Vice President
Commercial Risk Service

Cost of Group Healthcare up, but why?

It is reported today in the newspaper and on the television that nationally premiums are up around 9% this year for group healthcare plans per family. Also reported is that the EMPLOYER is the one who is bearing the cost of this increase for the most part. Obviously, this gets passed on to the employee in the form of fewer and smaller pay raises in the coming year, as well as slowing hiring of additional employees.

However, for purposes of this article, I want to look at reasons WHY the premiums are up. There are a lot of political thoughts out there, such as:

---Premiums were raised with expectations of a faster economic recovery, which would lead to an increase in the use of health-care services by workers.

---The rising cost of health care services

---The drive for profit by insurance carriers.

---It has been suggested that insurance companies raised premiums “in anticipation of new rules that would, in 2012, require them to justify increases of more than 10%”.

Let’s look now at what I really believe the biggest culprit of increases in health care cost is in this country- the deteriorating health and increasing weight of Americans! In our agency, we have seen some accounts that have had large increases in their renewal premiums, but we have also seen some accounts that have had DECREASES in their renewal premiums as well. In most of these cases, the predominant factor for raising the premiums has been the health of the group, caused by severe obesity problems, along with other health issues.

Let’s consider these national factors:

1) Every single state in the U.S. now has more than 20% of its residents that are considered obese or morbidly obese. As a matter of fact, more than ½ of the states have more than 30% of their residents that are obese. Just 15 years ago, no states were over the 30% obese range. What does that tell you about our health care costs in the last 15 years?

2) Over 35% of American adults nationally have been diagnosed with Diabetes, High Blood Pressure, or high cholesterol. The strain this has put on our health care system is obvious. It has been stated that over 90% of these situations are caused because of obesity. As a matter of fact, the rate of growth of these diseases is growing at a 15% clip annually. Now what do you think the main cause of health care increases actually is?

3) Incidences of cancer diagnosis have more than doubled in the last 15 years. The leading cause of cancer? You guessed it- the type and amount of food we eat! In addition, an obese person is 40% more likely to get cancer of some form than a healthy person.


4) 1 out of 3 children in this country are now considered obese! That is staggering! The likelihood of those children being having debilitating diseases in adulthood because of their weight is 12 times greater! Do you think this might cause our healthcare to go up now and in the future?

I could go on and on about our health care crisis in the U.S., but I think you get the point. The problem is not the insurance carriers- they just reflect what is going on in our healthcare system. Healthcare services are going up, but mostly because of our deteriorating health as a country. Sugar is one of the leading causes of obesity in the U.S.- or should I say the overuse of sugar! There is nothing sweet about how much sugar people consume every day. According to the American Heart Association, the average adult in the U.S. takes in 30 teaspoons of added sugar a day, or a whopping 150 pounds a year, while teens pile in 50 teaspoons a day. That’s almost 3 times the amount of sugar we should be eating. The amount is shocking, and the potential health effects of excess sugar consumption are even scarier. Mounting evidence suggests that flooding your system with the sweet stuff can play a role in obesity, heart disease, and cancer. It can also impact how you look or feel, doing damage to your skin or altering your mood.

Below are 6 scary side effects of sugar overdosing that you may or may not know:

1) Tossing Back Sugary Drinks May Increase your Risk of Diabetes
Consuming sugar-sweetened beverages, such as soft drinks, fruit drinks, sugar tea and sports drinks, may increase your chances of developing Type 2 Diabetes. It has been estimated that 180,000 new cases of diabetes between 1995 and 2005 can directly be attributed to the increase in sugary drinks!

2) Following a High-Glycemic Diet May Cause Acne
According to a 2008 study published in the Journal of Molecular Nutrition & Food Research, what you eat can affect your skin. High glycemic foods, such as refined carbs, sugary drinks, and even certain fruits high in natural sugars, cause large spikes in blood sugar. Those on the high- glycemic diet experienced a 14% increase in acne problems. So your Mom was right- what you eat can affect your skin!

3) A Diet Rich in Sugar Can Hurt Your Heart
Mounting evidence suggest that sugar plays a direct role in the health of your heart. A study found that people who took in more than 17.5% of their calories from added sugars were 20%-30% more likely to have high levels of triglycerides. It also found that people who got 25% or more of their calories from added sugars were more than 3 times more likely to have low levels of HDL ( the good cholesterol).

4) Sugar Can Increase Your Chances of Depression

Eating sugar and carbs can give you a temporary mood boost- it triggers your body to release the feel-good hormone serotonin- but overloading your system with sugar seems to have the reverse effect. In fact, researchers from Baylor College of Medicine found a correlation between sugar consumption and the annual rate of depression in six countries.

5) High Blood Pressure Can Increase Your Risk of Yeast Infection
Yeast grows by feeding on sugar, so if you drink a 48 ounce Big Gulp every day, your body is going to be a fermentation tank. Yeast infections, both vaginally and in your mouth- are typically caused by an overgrowth of the bacteria Candida. When your blood sugar is high, the extra sugars in your saliva and urine provide a perfect breeding ground for the bacteria.

6) Sugar May Increase Your Risk of Cancer
While it’s not proven (but highly suspected) that sugar fuels cancer growth in the body, we do know that obesity- a likely effect of eating too much sugar- increases your risk of developing a number of cancers.

The next time you listen to a bunch of politicians screaming about our healthcare costs going up and blaming the other party and the Insurance carriers for all the problems, put down the Coke your are drinking and the M&Ms you are eating and make a difference you YOUR health!

Bobby Bland PWCA, CIC
Vice President
Commercial Risk Service

8 Tricks that cut calories and Can help your business as Well!!!

We see it all the time- lists and lists of ways to cut calories and lose weight. Here is another list, but this time with a different twist. This is a list of something I read the other day that is very good advice on losing weight- here are 8 tips for cutting calories to our diet. I have added a little twist- each tip will also help you run your business better! Enjoy-

Tip#1 Take Note
Diet Tip   A study found that those who kept daily food logs lost twice as much as those who didn't. Many people lowball how much they eat- seeing it all in black-and-white can be a reality check.
Management Tip   If you are in sales, keep detailed notes of how much time you actually spend going after new business. If you manage other people, keep track of how much time you actually spend training and helping your employees. You may be shocked!

Tip#2 Find Balance
Diet Tip   Experts say that people with a lot of pounds to lose get overwhelmed by couting calories and give up. Keep it simple by divvying your plate into thirds: 1/3 protein, 1/3 vegetables, and 1/3 whole grains.
Management Tip   Managing a group of people while still handling all of your responsibilities is sometimes very overwhelming. Just like losing calories, remember to keep it simple: Prioritize your own projects, and spend time each day training your employees. Sharpening "their tools" will pay more dividends in the long run.

Tip#3 Swap Smart
Diet Tip    Restricting foods can increase your cravings and lead to off-the-wagon binges. Jonesing for a cookie? Have it, but swap it for your afternoon caramel macciato or pretzels.
Management Tip   Budgets for your business are sometimes very difficult to manage. Sometimes we can make cuts that are more detrimental to our business in the long run than the expense itself. Before cutting an expense, ask yourself this question- if I no longer have that expense, will it cost me in sales and/or profits? If the answer is yes, then you might want to rethink that decision.

Tip#4 Scale Back
Diet Tip   Serve dinner on a salad plate and pour cereal into a mug rather than a bowl. Experts say you'll think you're eating more than you actually are.
Management Tip   Do you need to drive a new car every year, just for the tax break? Sometimes we can fool ourselves into believing anything is good for us, can't we?

Tip#5 Slow Down
Diet Tip   Sip water and set your fork down after every bite. There's lag time between your stomach feeling fool and your brain getting the message.
Management Tip   Take time to explain what you really want from your employees. Many times we assume that they understand us by "reading our minds". Going too fast sometimes leads to costly mistakes.

Tip#6 Nosh Often
Diet Tip   Eat small amounts every few hours. It can help your body burn calories instead of holding on to them.
Management Tip   In managment terms, taking on too much or asking an employee to take on too much is termed "drinking from the fire hose". Remember, the only way to tackle a big project is one part at a time just like the only way to eat an elephant is one bite at a time!

Tip#7 Pick Protein

Diet Tip   Protein keeps you feeling full longer, burns calories as it digests, and helps your muscles recover.
Management Tip   Protein is the building block for your body. Without it, everything else doesn't matter. What is the "Protein" for your business? In almost every case, it's your people! Remember, people matter!

Tip#8 Beat Bloat
Diet Tip   Avoid excess salt, limit food like broccoli and beans, and add lemon to your water (it acts as a natural diuretic).
Management Tip   Avoid employees that cause "bloat" to your business. Good hiring practices will keep those types of employees from invading your company. Also, make sure to have a good return-to-work program in place before you hire. Just like lemons, the return-to-work program will act as a nautural "diuretic" to your business, getting rid of the "bad" employees!

Bobby Bland PWCA, CIC
Vice President
Commercial Risk Service

Fighting Worker's Compensation Fraud

Worker’s Compensation fraud undermines a 100-year old social system originally designed to assist injured workers and their families with medical bills and partial wage replacement for on-the-job accidents. The added strain associated with Workers Compensation fraud places substantial pressure on the system’s infrastructure. When fraudsters “cheat the system”, the results are greater losses for employers and insurers, higher insurance premiums, lower revenues and possibly fewer jobs for honest workers.


The size and scope of Worker’s Compensation fraud is difficult to determine, but The Insurance Information Institute estimates that Worker’s Comp fraud makes up about $7.2 Billion per year, or 25% of all Insurance fraud in the U.S.

There are 3 types of Worker’s Compensation fraud that occur- Employee fraud, provider fraud, and employer fraud. However, for purposes of this article, we are only going to deal with employee fraud.

Employee fraud tends to be the most highly publicized type of Workers Compensation fraud. Businesses that employ a high number of contract, temporary, or seasonal workers are particularly susceptible to this type of fraud. While all claims should be treated as legitimate, managers should be trained to look carefully for suspicious signs of possible fraud. While these red flags do not confirm fraudulent activity, they can identify claims that warrant a closer look. Common red flags include:

• The injury is reported on Monday morning or after a vacation or holiday

• The injury is reported about the same time every year

• The injury is reported late

• The claimant is a new, seasonal, or contract employee, or claimant has a history of short-term employment

• Claimant has an attorney when injury is reported

• Claimant demands quick settlement

• The Claimant is facing possible layoff or termination

• The Claimant’s description of the accident and resulting injury are not consistent

• Claimant goes to the emergency room for treatment for a non-emergency condition

• Claimant refuses diagnostic procedures to confirm treatment

• The Claimant’s address is a post office box or hotel address

• Claimant is disgruntled

• There are no witnesses to the accident

Employers, be aware of these potential signs that there may be employer fraud. Please comment if any of you have been a victim to Worker’s Compensation fraud, and what the signs were for you.

Bobby Bland PWCA, CIC
Vice President
Commercial Risk Service

Health Insurer Rate Hike Reviews Begin

Starting Thursday, state and federal regulators will review double-digit rate increase proposals from health insurers to determine whether the premium hike is reasonable.

The rate review program is under the Affordable Care Act, requires health insurers to submit a written request for a rate increase of 10% or more to independent reviewers. The Centers for Medicare and Medicare Services (CMS) will review in nine states that lack the authority to adequately review rates. The remaining 41 states will conduct their own reviews.

Experts that review rates will look for "underlying cost trends in health care to flag instances when insurance companies are unjustly raising costs."

According to the Department of Health and Human Services, insurers that have to go forward with rate increases must post their justifications on their website, and state and federal regulators will post online as well.

"Far too long, families and small employers have been at the mercy of insurance rate increases that often put coverage out of their reach. Rate review will shed a bright light on the industry's behavior and drive market competition to lower costs," Said Kathleen Sebelius, Secretary of Health and Human services, in a statement. We are pleased to team with states to bring this important new protection to consumers and employers."

The Affordable Care Act provides $250 million over five years to states that need help in order to perform stronger reviews. Over the last year, according to HHS, 42 states, the District of Columbia and the five U.S. territories have used $48 million in grants to help improve their oversight of proposed health insurance rate increases.

Seeing "The Big Picture"

"Put a golf ball under a microscope, and it looks like the surface of the moon."
"Focus on only the car in front of you while you are driving and you are sure to have an accident real soon!"
"Unless you are the lead sled dog, the scenery never changes- all you ever see is a hairy butt!"

Where is this going? Sometimes I worry myself. However, I know this... When we get too close to something, sometimes we lose perspective, and fail to see the "big picture".

I see this many times with my clients and prospectives as well. They get so wrapped up in trying to "save a buck" on insurance expenses that they forget why they buy insurance in the first place- to cover and protect their business in case of a major claim! Don't get me wrong- I have run businesses and am currently helping run one now. I know the importance of keeping expenses in check. However, never at the risk of protecting your employees and your assets!

There is a much more to your risk and insurance plan than "getting the cheapest insurance quote". Here are a few things to consider:
   --Are you listening to your employees, understanding how valuable they really are to your organization? Have you really trained them properly, creating the best "safety culture" you can?

  --How effective is your hiring process in weeding out potential "bad hires"? What are you doing about it?

  --Do you have a workable "return to work" program, and are you using it? How has that "return to work" program (or lack of it) affected your Workers Comp experience mod factor?

  --Do you know that you have ample coverage to protect your P&L, not just you Building, if your building blew away in a storm? Are you covered amply if your business is closed for 3 months? 6 months? Longer?

  --What is the worst disaster that you can think of for your business? Are you covered and prepared to handle this problem?

There are literally endless questions you can ask yourself, but the key is to take a step back and take a look at your business and to focus in a broader perspective about your risk and operational needs. I know how hard you work "in" you business. Today, take some time to work "on" your business and make sure you are comfortable with your overall risk plan.

Let me know what you find.

Bobby Bland PWCA, CIC
Vice President
Commercial Risk Service

Boat Rental Checkout Procedures- Address Lake Conditions

If you rent boats to the public or your customers, you should have a very good checkout procedure in place to educate your boat rental customer and to document that you have reviewed the boat operation, safety features and equipment, and boat navigation with your boat rental customer.


As a marina and resort insurance specialist, I review many checkout procedures for my clients. One thing that is often missing from the checkout procedure is language addressing current lake conditions. Why is this important?

A boat rental customer recently accused one of my clients of renting a boat in unsafe lake conditions. The lake was near flood stage and there was a lot of floating debris in the lake. The rental customer hit something in the lake, most likely a submerged tree, and damaged the lower unit on the boat. Of course, the rental customer was liable for the damage per the boat rental contract but they used the “unsafe lake conditions” argument to try to get out of paying for the damage to the lower unit.

Because of this recent experience, it would be a good idea to add a clause to your boat rental agreement or checkout procedure stating that lake conditions can be unpredictable and can change in an instant due to water current, winds, hail, lightning, high/low water levels, or other weather and water conditions. It is the responsibility of the boat renter to monitor conditions and decide whether they want to rent the boat and the boat renter agrees to hold boat rental company harmless if any damages/injuries occur due to lake and weather conditions. Of course, if the lake is full of floating timber or under threat of approaching severe weather, it is a good idea to stop renting boats until the dangerous conditions are not a threat.

Addressing lake and weather conditions on your boat rental contract or checkout procedure will help to protect against claims related to these issues.

Workers Face Higher Health Care Costs

According to a new survey by the National Business Group on Health, large U.S. employers are planning to shift higher health care costs to workers next year, thanks largely to cost increases that are more than twice the rate of inflation.

Employers estimate their health care benefit cost will increase an average of 7.2 percent in 2012, which is slightly lower than this year's 7.4 percent average increase. However, it still outpaces economic growth and business conditions, putting many employers in a tough spot.

While employees brace for a bigger share of the benefits tab over the next year, employers look to cost-mitigating strategies like consumer driven health plans, cost sharing and wellness initiatives. The survey also found other changes in benefit programs as various components of the health care reform law take effect.

To help control increases and drive down costs to avoid the "Cadillac" tax, employers are planning to use a wider variety of cost-sharing strategies. More than half of the employers (53 percent) plan to increase the percentage that employees contribute to the premiums, while 39 percent plan to increase in-network deductibles. Twenty-three percent of employers plan to increase out-of-network deductibles, while 22 percent will increase out-of-pocket maximums next year.

The survey was based on responses from 83 of the nation's largest corporations, and was conducted in June 2011.

9 Things Employees Want From Their Managers (and 5 things they don't)

Different employees crave different things from their Managers. For example, some employees want a hands-on boss who stops by with a “How are things going?” every couple of hours. Others don’t care to see their boss but once a year at the performance review.

A survey of 5,000 U.S. employees reveals what matters most to workers:

1) Honesty

90% say they want honesty and integrity from their manager. Lies and secrets are the biggest killers to credibility.

2) Fairness

89% want their manager to be fair and to hold all employees accountable to the same standards.

3) Trust

More than 86% want to trust- and be trusted by- their manager.

4) Respect

84% want to respect- and be respected by- their manager.

5) Dependability

81% say they want to be able to count on their manager when needed.

6) Collaboration

77% want to be a part of their manager’s team and be asked to contribute ideas and solutions. Shutting employees out will shut them up- and send them shipping out.

7) Genuineness

76% want their manager to be a genuine person. Employees sometimes spend more time with their boss than with their families- they don’t want a phony.

8) Appreciation

74% want their manager to appreciate them for who they are and what they do. When was the last time you handed out a “Thank You” or “Great job!” to employees?

9) Responsiveness

74% want their manager to listen, understand and respond. Be a sponge, not a brick wall.

5 Things they DON’T NEED from a Manager:


1) Friendship

Only 3% want their manager to be a friend. As in parenting, it’s more important to be a leader, mentor and example than a buddy.

2) Conversation

Only 14% want to have interesting conversations with their manager.

3) TLC

24% say they want their manager to “care for them.” That doesn’t mean you have to be cold and detached, but most employees aren’t looking for a best friend in their boss.

4) Emotional Support

25% want emotional support from their manager. Employees typically look for that among co-workers rather than a boss.

5) Cheerfulness


Only 28% want a cheerful or happy manager. They’d rather respect you than like you.

Comment back and let me know what YOU deem most important in you manager.

Bobby Bland PWCA, CIC
Vice President
Commercial Risk Service

State of the Marina Insurance Marketplace

If you operate a marina in Arkansas, Missouri, Oklahoma, or Kansas, chances are you have had weather-related property damage sometime in the past 3-4 years. This four state region, as well as Tennessee, Kentucky, Alabama, Texas and others have all had significant and damaging weather events such as tornadoes, severe thunderstorm winds, and snow and ice storms. These storm events have wrecked many marinas and caused millions of dollars in damages that insurance companies paid out in the past several years.

This is a real problem in the marina industry because there are a limited number of insurance companies that choose to insure marinas because of the high-risk nature of experiencing catastrophic property damage claims. After the latest round of storms occurring in this region, the insurance companies have started reacting in various ways, which will impact marina operators.

Companies are getting much stricter with their underwriting guidelines and that will start to impact marina operators who have older docks. The underwriting rules are starting to result with increasing deductibles including wind, flood, hail, and collapse due to weight of ice/snow. Some companies are even starting to exclude collapse coverage in certain areas, on older docks, and on all wood frame docks. In addition to the increasing deductibles, we have started seeing increasing rates on docks. Due to the claims history in these regions, other insurance companies are not looking to get into the marina insurance business, which will keep the number of available companies very limited in the near future. Anytime you have a limited marketplace, there are fewer insurance options and that can lead to reduced insurance coverage as well as higher prices.

This can change, of course, if these regions have a couple of years of infrequent claim reports. When that happens, more money is made by the insurance companies leading these companies to relax underwriting rules in an attempt to gain market share and other companies will look to enter the marketplace as well.

What can a marina operator do when the insurance marketplace is so limited? A good risk management program and good dock maintenance program are critical to reducing the risk of property claims. When the marketplace is so limited and underwriting rules so strict, it is very important that efforts are made to reduce the risk of a claim. You definitely want to hire a marina insurance specialist as your agent because your agent can help you with your risk management program.

Doug Timmons, CIC, CMIP
Marina Insurance Specialist
Commercial Risk Service

Healthcare Use May Temper Premium Hikes

Consumers may catch a little break when their health insurance policies renew. Lower-than-expected use of healthcare has helped push insurer earnings higher and that may temper how much they increase premiums.


Analysts and industry observers say people tend to hold off on elective surgeries and skip doctor visits after a deep recession, and that makes utilization grow more slowly. Insurers consider this trend when they determine what they will need to collect in premiums to cover future claims, and employers will likely use it as a bargaining chip when they negotiate prices of the plans that cover their workers.

This doesn’t mean consumers on a steady diet of rising premiums in recent years can expect a price drop.

“I think what it promises is some level of stability in rates,” said Dan Mendelson, CEO of the research firm Avalere Health. “It doesn’t promise that rates are going to go down or they are going to be flat, but it does predict that there shouldn’t be wild increases in rates.”

Healthcare use has slowed to a growth rate “we haven’t seen in many years,” said Robert Laszewski, a former insurance executive and now a policy consultant. He said this means premiums will keep rising, but at lower rates than recently.

What it takes to be an Effective Leader

In a recent Caliper study, more than 300 president and CEO’s listed what they considered to be the most important and most difficult aspects of being a leader:

• Creating the right vision

• Getting people to embrace that vision

• Maintaining momentum (motivating, influencing and persuading others)

• Managing change (strategic planning, problem solving)

• Surrounding oneself with the right people

• Developing staff (coaching, managing performance, transforming teams)

• Delegating authority

Surrounding oneself with the right people was selected 41% of the time, second only to creating the right vision as one of the most critical parts of leadership. Surrounding oneself with the right people was also selected as one of the three most difficult aspects of being an effective leader. In Northwest Arkansas, we are having a problem with higher unemployment rate, but nothing like in other parts of the country. If you really want a job, you can find one. From the employer’s side of it, however, sometimes the “pickins” are pretty slim. Do you hire the experienced person who has changed jobs about every 2 years for the last decade, or do you hire the “newbie” right out of college? Do you promote from within, or bring in a “fresh face” with new ideas? These are all difficult decisions for leaders of organizations in Northwest Arkansas.

Anyone can become a “Manager”, but it takes a special person to actually be a “Leader”. These same CEO’s in this study said that there are three main factors that keep most managers from becoming leaders:

• Not understanding others well enough (or not trying to understand them)

• Not solving problems quickly enough

• Not taking necessary risks

We have heard from the experts. Now let’s hear from those of us that are in the trenches every day here in Northwest Arkansas. I will give you my opinions, and then I want to hear from you leaders out there.

Here’s my take on how to become an effective leader:

• First you have to believe in yourself, but care more about the people on your “team”. Narcissism has no place in the work environment or on any team. If you are working to help those around you, your sense of purpose is better, the people around you will follow that lead, and you will tend not to quit as easily.

• Then, you have to create the vision for your organization or team. I really believe that it is much more important that the vision be your concept than it is that the vision is “correct”. There is no right or wrong vision… just visions that weren’t followed through and communicated to your team properly.

I believe these are the basic two ingredients needed to being an effective leader. If you really care about the people who work alongside you, it will show every day in how you treat them. In addition, if you believe in the vision you have set forth and they know you care about them; your team will follow you into battle. From there, the war is much closer to winning!

I want to hear from you- what are your thoughts on leadership in your organization or team? What do you believe are the most difficult of being an effective leader? I look forward to hearing from you.

Bobby Bland PWCA, CIC
Vice President
Commercial Risk Service

Marine General Liability vs. General Liability

Marina operators and boat dealers have unique liability protection requirements to protect the business from lawsuits related to the business operations. Did you know that a standard General Liability policy excludes coverage for watercraft including the “ownership, maintenance, use of” watercraft owned or operated by an insured? This exclusion is especially problematic for marina operators and boat dealers because of the frequent operation of owned and also customers watercraft. Operations such as marina employees operating work boats or rental boats around the marina, test drives and demo drives of boats for sale or repaired boats are excluded in an unendorsed General Liability policy.


Another exclusion in an unendorsed General Liability policy is the “care, custody, or control” of personal property of others. This means that operations such as boat repair, fueling, storage, hauling and launching, slip rentals are all excluded by an unendorsed General Liability policy.

For boat dealers who sometimes install aftermarket parts or equipment on boats for sale, there is a “your product” and “your work” exclusion in an unendorsed General Liability policy that excludes coverage for a claim related to the installation of the aftermarket part.

Insurance companies that insure marine businesses have created a Marine General Liability form that eliminates the above exclusions so that marina operators and boat dealers are properly protected. Do you know which liability form you are protected by?

The above exclusions are important reasons to know if your agent is a marine insurance specialist, to know if the insurance company that your liability policy is with uses a Marine General Liability form instead of a standard General Liability form. The differences are critical for the protection of your business.

What can you do for me?

I was visiting with a prospective client the other day, and they asked me a very interesting question:

“What can you do for me that I’m not already getting from my current agent?”

Now THAT’S the million dollar question! To be honest with you, I spent the first 10 years of my insurance not really able to answer that question with an effective response. Some of my stammering included:

---“Because I am very knowledgeable”

---“I have 10 years experience”

---“My winning personality!”

---We give the best service (what does that really mean?)

The last few years, I have been more focused on helping the customer find ways to reduce their risks in their business through focusing on their operation and creating more knowledge and awareness of claims management in their organization. I have found that it’s not the truck that causes a wreck, not the building that causes liability, and not the job function that causes an employee to get injured- it’s the people in your organization that cause the claims!

I have spent the last 4-5 years trying to help my customers create a better working environment for their employees, as well as setting expectations for those employees. Some insureds are better than others at taking experienced advice. Those customers have seen tremendous results in their risk management programs- others not so much.

Back to original question: “What can you do for me that I’m not already getting from my current agent?” Let me answer that question-

“We have been very successful at helping you the business owner or manager find new and innovative ways to run your business more effectively with fewer claims and better response to the claims you do have. In short, we can make your company more profitable in the long run than our competition. I feel extremely confident about that fact.”

What about your business? What can you do for your customers that they are not already getting from a competitor? Let me know your thoughts to this question.

Bobby Bland PWCA, CIC
Vice President
Commercial Risk Service

Confessions of a Food-aholic

Many times in life, we tend to make up rules as we go, such as:

---“If you cross your eyes too many times, you could end up that way permanently.”

---“It’s OK to tell your mother a little white lie, as long as it “makes her feel better.” (or as you get older, maybe a little bigger lie!)

---“Don’t remove this tag under penalty of law”. (I wish I would have thought of that!)

---“If you do something wrong, it will go on your permanent record.” (where do they keep that “permanent record?”

…or we make up our minds about our own personal limitations, such as…

---“My brother got the brains in our family, so I guess I’m just a screw-up.”

---“I would never be able to make it through college because our family doesn’t have the money.”

---I am not really fat, just “big boned”! ( Or I heard this one- “I can carry more weight because I’m long-waisted!.”

As a child, I always loved being the biggest kid in school. I was WAY bigger than everyone else my age- taller, bigger, and stronger- the fat part came later. Along with that came the fact that I ate more- my parents always told me “eat as much of meat and potatoes as you want, and drink all the milk you want, and it will make you bigger and stronger” (another questionable rule!). So I did- I ate steak and potatoes and all the trimmings every meal, along with about 7 gallons of whole milk per week.

When I got into adulthood, I still ate a lot of food, even though I was obviously through growing taller, just wider. I always told myself that “I was just a bigger person than everyone else, and I needed more food to maintain”. Everyone always told me “You’re not really fat, just big boned.” Somebody even once told me that “You’re not overweight, you’re just under-tall!”

Fast forward to February of this year: I had been diagnosed at a Type II Diabetic about 5 years ago, having to take insulin for the high blood sugar, medication for high blood pressure and high cholesterol. In addition, I had been diagnosed 5 years ago with sleep apnea because of my morbid obesity and was using a C-PAP machine to help control that at night when I slept. I had lost 50 pounds 3-4 years ago (down from 390) to now weigh 340 pounds, but couldn’t get any more weight off because the insulin makes you gain weight.

I decided to make a last-ditch effort to change my life and had gastric bypass surgery on February 1st this year. In the 5 ½ months that have followed, not only have I lost 120 lbs., to now weigh 220, I also no longer take any medications! I don’t have to use Insulin because my blood sugars are now normal. I am completely off high blood pressure medications, high cholesterol prescriptions. I now work out 90 minutes EVERY DAY.

Even better, I have also lost a lifetime of pre-conceived ideas that have held me back all these years:

---I am not doomed to be “big and fat” all my life”. I can choose to be the size and shape I want to be.

---My knees (which I have had 5 surgeries on) don’t have to hurt all the time. I can now walk 7-8 miles hard and have no pain.

---I no longer believe that if I work out 3 times per week, I can improve my health, because I am dedicated to working out EVERY DAY, no matter what.

---I also am saving about $500-$700 every month simply because I no longer feel that I need to eat out at a restaurant every meal. (I can even drive by a Zaxby’s without pulling in!)

My point is this…

You can be anything you make up your mind to be. If you choose to be fat, you will be fat. If you choose to be unhappy, you will be miserable. If you choose to keep your business (or your career) in the same mediocrity it is in today, you will be stuck with that mode forever. Instead, decide to change your life and your business for the better. Take the limitations off of yourself, and go accomplish something! Get excited about what you are doing in your life, even if it means changing your life completely.

Give me some feedback and tell me what you want to change in your life or your business today.

Bobby Bland PWCA, CIC
Vice President
Commercial Risk Service

Americans Keep Getting Fatter, Especially in the South

Los Angeles—In 1995, no state had an obesity rate above 20 percent. Now, all but one does.


An annual obesity report by two public health groups looked for the first time at state-by-state statistics over the last two decades. The number of obese U.S. adults rose in 16 states in the last year, helping to push obesity rates in a dozen states above 30 percent, according to a recently released report.

Mississippi is the fattest state in the union with an adult obesity rate of 34.4 percent. Colorado is the least obese—with a rate of only 19.8 percent—and the only state with an adult obesity rate below 20 percent, according to “F as in Fat,” an annual report from the Trust for America’s Health and the Robert Wood Johnson Foundation.

“When you look at it year by year, the changes are incremental,” says Jeffrey Levi, executive director of the Trust for America’s Health, which writes the annual report with the Robert Woods Johnson Foundation. “When you look at it by a generation you see how we get into this problem.”

Obesity rates did not decline in any state and even Colorado does not win high marks—it’s score means one in five state residents is at a higher risk for conditions like heart disease and diabetes.

“Today, the state with the lowest adult obesity rate would have the highest rate in 1995,” said Levi.

Four years ago, only one U.S. state had an adult obesity rate above 30 percent, according to the report. Obesity is defined as a body mass index – the weight to height ratio – of 30 or more.

The study, based on 2010 data, says a dozen states top the 30 percent obesity, most of them in the South. Mississippi topped the list for the seventh year in a row, with Alabama, West Virginia, Tennessee and Louisiana close behind. Just five years ago, in 2006, Mississippi was the only state above 30 percent.

Does a Marina need Flood Coverage?

Most property policies exclude flood coverage for land-based property such as buildings. A flood policy can be purchased to cover the land property but unfortunately, due to the location of marinas in high hazard flood zones, the coverage can be very expensive. In addition, a flood policy has a 30-day delay before coverage takes effect. Do you need flood coverage for your land property? Have you experienced a major flood since you have owned your marina? If so, is any of your land property at risk if the lake floods to maximum elevation or even a couple of feet higher than the “top of flood pool”? A lake can definitely flood to heights above the “top of flood pool” if the conditions are right. I have personally experienced this on Beaver Lake. So, if any of your land property is at risk of flood damage, you should ask your agent for a flood quote to determine whether you wish to cover this peril with insurance.

Boat docks are typically covered under an inland marine “Piers, Wharves, and Docks” policy and flood is usually a covered peril under those types of policies and that coverage is in effect for the entire policy term, with no 30-day delay in coverage. There are a few insurance companies that will endorse a standard property policy to include dock coverage but those types of policies would exclude any dock damages due to flood. You need to check with your agent to confirm which type of coverage you have because a flood can damage dock walkways, electrical systems, fuel systems, winches/cabling, etc. If your policy covers flood damage to your docks, you may also have a loss of business income claim as well.

If you have, or are considering purchasing an insurance policy that excludes flood for your docks, ask yourself whether you are prepared for fast rising water, water current, and able to maintain access to your docks. If you have already experienced flood conditions, you have a pretty good idea what can happen to your docks, electrical system, and fuel system. Flood damage to docks is typically limited and due to the flood deductible, this exclusion may not be a huge issue to you. However, if you haven’t experienced a major flood, you may want to purchase a policy that will cover flood so that you don’t experience any financial loss due to a flood.

If you are unsure, you should discuss this issue with your agent.

Doug Timmons, CIC, CMIP
Marina Insurance Specialist
Commercial Risk Service

Federal Appeals Court Rules Health Care Reform Bill is Constitutional

The political and legal future of Healthcare Reform received a big boost Wednesday after a federal appeals court in Cincinnati ruled in favor of the Obama administration and Congress, concluding a key provision in the landmark legislation was constitutional.

The “individual mandate” requiring all Americans to purchase health insurance by 2014 or face financial penalties—was challenged in federal courts by a large number of individuals and groups, who said people should not be forced to purchase a product like medical coverage. A partially divided U.S. Court of Appeals for the 6th Circuit disagreed.

“We find the minimum coverage provision is a valid exercise of legislative power by Congress under the Commerce Clause,” said the three-judge panel on Wednesday, in a 64-page opinion.

The opinion is the first of three rulings that will emerge from the federal appeals courts around the country in the coming weeks over the Patient Protection and Affordable Care Act.

The issue is almost certain to eventually reach the Supreme Court, perhaps by year’s end. More than two dozen other legal challenges to the law are floating in lower federal courts.

Email-"E" is for evidence

Do employees in your organization know how to send email? Of course they know how to physically send a message. But have you ever taught them what should- and, more importantly, should not- be included in emails?

The "E" in email stands for eternal evidence and it doesn't go away! Here are a couple of examples of real email mistakes that cost employers big in court, including managers who included these words in their email:

• "We would like to accommodate you, but we're not set up for blind people." (an $8 Million verdict!)
• "I don't care about the FMLA, shmeflma!" (a $650,000 verdict!)
• "I'm sick of always have to accommodate her."

Corporate emails are a "treasure trove of evidence" in employment law court cases. More than 107 trillion emails were sent in 2010 alone and business people spend about 25% of their workdays on email. This constantly changing online environment is creating a legal minefield for U.S. employers. Employers are required to place a "litigation hold" on destroying any email once they become aware that a legal claim may be coming.

Think about it- how much training or time is spent with your middle management or upper management talking about the information that is contained in interoffice emails? Employees should have no expectation of privacy with emails- NONE! And you should make that perfectly clear with every employee- salaried or hourly. Here are 3 myths commonly held by employees concerning emails:

1. It's my e-mail, with my name on it, so you can't search it.

Employer response: A simply stated email policy puts you on notice of the employer's rights and defeats your reasonable expectation of privacy.

  2.  It's my own personal password and personal folders, not the Company's.

Employers response: True, but they are being transmitted on the company's network, therefore, it is property of the employer.

   3. I own my own computer and bring it to work.

Employer response: The computer was being used for work-related purposes and therefore you have no reasonable expectation of privacy.

Employees need to realize that "they're always creating legal documents with the creation of each new email. HR should teach employees to approach email based on these three guiding principles"

1. Start all emails by asking yourself, "Does this need to be in writing?" If not, pick up the phone or walk down the hall.
2. If you can't say it in person, don't email it.
3. Write every email like it's going to be read to a jury... because it just may be!

Comment back and let me know of any "mistakes" that you know have been made with your company emails, and how you solved the problems.

Bobby Bland PWCA, CIC
Vice President
Commercial Risk Service