Cleaning up after a disaster

Once the shock of a disaster wanes, it’s time to regroup and pick up the pieces. When cleaning up after a fire, storm, or flood, the business owner is left to decide what can be salvaged and what must be thrown away.

In worst case scenarios, such as in the Gulf Coast region devastated by Hurricane Katrina, standing water, sludge, and sewage can destroy entire homes and businesses. But even a flooded basement, leaky roof, or small fire can cause extensive property damage for businesses. Time is of the essence in these situations, and you may be most successful if you are able to respond to damage within 48 hours. Bear in mind that once water is gone, mold becomes a dangerous, lingering contaminant. Eliminating moisture is often the building owner’s greatest challenge.

In order to minimize loss and properly clean up in the event of a disaster, consider the following
areas of concern.

1. Your Building’s Structural Integrity. Keeping your building well maintained can help ensure it is structurally sound, possibly enhancing its capacity to withstand a destructive storm or flood. Should a disaster strike, it is important to have a professional inspect the foundation for any shifts, cracks, or weaknesses. In the event of serious flooding or a fire, the wooden frame should be dried out and decontaminated to eliminate any mold.

2. Equipment, Heating and Cooling Systems, and Water Heaters. Have a service professional inspect the functionality of your business equipment and computers. While certain machinery may still work, water damage may reduce its efficiency or lifespan. Furnaces, air conditioning systems, and water heaters often need to be replaced, as repair and cleaning can be difficult and costly.

3. Interior Restoration. Professional restoration services may be able to speed dry a water-damaged building, thus minimizing the loss to a business. Hardwood floors, once dry, may be restored, but carpeting will likely need to be replaced, especially if it was damaged by toxic or dirty water. Similarly, wood furniture may be refinished, while upholstered furniture will likely need to be discarded. Items that can withstand a heavy-duty cleaning can often be salvaged, but avoid trying to save anything made of porous materials that was exposed to contaminated water.

4. Document Preservation. All paperwork necessary to your business operations, including employment records, insurance policies, tax records, and financial documents, should always be stored in a dry place that is not exposed to severe temperature shifts. Paper and other organic materials are particularly vulnerable to mold and should be air dried within 48 hours after contact with water.

To minimize your financial loss, make sure your business property insurance is adequate. Because property insurance does not cover all perils—damage caused by earthquake or flooding is often excluded—be sure to understand the scope of your coverage and ask your insurance agent about any additional insurance you may need, according to your risks.

In addition, consider obtaining business income insurance, also called business interruption coverage. This insurance is designed to replace the income your business would generate under normal circumstances in the event of a disaster or other covered peril. It can help your company get back on its feet by providing funds to help cover critical expenses and lost profit until the business is up and running again. For more information, please give us a call.

How crime-resistant is your business?

Crime and violence are everywhere—on the nightly news, in the movies, on TV, and maybe even at the business down the street. Nevertheless, you may think crime will never find its way to your business. Unfortunately, crime is often random and unpredictable, and there’s no way of knowing who will be the next victim. Regardless of the type of business you own, workplace security is essential.

Crime-proofing your business is not that complicated. There are various options to choose from, depending on your specific needs. Here are a few ideas:

1. Quality Doors and Locks. The number one precaution is to have a metal or solid wood door and cylinder locks that resist kicking, drilling, and beating. Some lock manufacturers offer the added benefit of keys that can be duplicated only on specially designed machines, which are not available at standard key shops and hardware stores.

2. Remote Control or Keyless Entry. To protect your office and employees during the day, as well as at night, consider a remote control or keyless entry. While their features vary, the general purpose is to allow access to only a select group of people to whom you give remotes or special codes.

3. Video Surveillance Cameras. Cameras catch criminals in the act, ultimately helping with identification. They are available in both fixed and movable models.

4. Proper Identification and Security Personnel. Security personnel can help minimize the threat of burglary, especially for companies with large facilities and sprawling grounds. Companies with many employees may find great benefit in adding a security/ employee check-in system, which can include identification badges.

5. Office Safes. If you purchase an office safe, make sure it is big enough to avoid being easily carried off by a thief. You may want to bypass purchasing a safe with a manual combination lock, since employees may not always take the time to re-scramble it after they close the door. Safes with electronic keypads are less likely to be left unlocked.

6. Heat and Motion Detectors. These detectors monitor changes in heat and/or motion and respond with an alarm or bright lights. While they can be highly effective, they are not a good idea if you have night workers or other security that might trigger the detector after normal business hours.

7. Alarm Systems. If you are going to invest in an alarm system, the best choice is one that directly alerts a private security agency or local police station. However, an alarm that rings on the property can also help by either scaring off a burglar or attracting the attention of someone nearby.

No matter what steps you take to safeguard your business, they should always be accompanied by the proper crime insurance. Please contact one of our qualified insurance professionals for more information and an evaluation of your specific needs.

Guidelines for employment recordkeeping

Good recordkeeping can help minimize your risk in the highly regulated arena of employment. There are Federal and state regulations regarding how long certain records must be kept in order to protect an employee’s privacy, meet auditing standards, and serve as documentation in the event of a lawsuit. With an organized approach, you can minimize the time spent on paperwork and more easily ensure you are complying with standard employment practices.

EEO Guidelines

Many Federal employment laws were created to protect employees from discrimination in the workplace. Even companies not subject to Equal Employment Opportunity (EEO) regulations because of their size should consider following these Federal guidelines. If an employee or former employee takes legal action, failure to keep proper records could hurt your defense during litigation.

In short, EEO regulations stipulate that employers should keep all employment records for one year. Records for employees who are involuntarily terminated should be retained for at least one year following the date of termination. If action is taken against you, keep all relevant records until the charges are resolved.

ADEA, FMLA, FLSA, and EPA Regulations

In order to comply with the Age Discrimination in Employment Act (ADEA), payroll records, which include an employee’s name, address, age, occupation, pay rate, and weekly compensation, should be kept for three years. The employer should also preserve records of an employee’s benefit plan with information regarding seniority and merit systems while the plan is in effect and for one year following its termination.

Information regarding employees and the Family and Medical Leave Act (FMLA) should also be kept for three years, including payroll records, dates and hours of FMLA leave, employer policies and procedures, and any pertinent medical information.

For recordkeeping purposes regarding the Fair Labor Standards Act (FLSA) and the Equal Pay Act (EPA), it is also important to keep payroll records for three years. Information regarding wages, rates, contracts, job descriptions, merit and seniority systems, and collective bargaining agreements should be retained for two years.

What Else and for How Long?

Hiring information, such as records and any relevant procedures, should be kept for two years, and employee applications should be retained for one year. If you use temps, keep the contracts and their insurance information, plus all employment-related tax information, for four years from the tax due date.

Workers compensation regulations vary by state, so check with the appropriate state agency for more information on full compliance. If you have an affirmative action plan, keep the plan summary and any relevant records for at least two years from any affiliated action, or for an indefinite length of time.

Apart from Federal regulations, an employer will have to consider whether to keep records for a longer period of time than required in case of a lawsuit. An illustration of this lies in the case of Anderson v. Mt. Clemens Pottery Co., 328 U.S. 680 (1946). In this case, employees alleged that they worked hours for which they were not compensated, but the employer could not produce hourly work documentation. The court ruled that although the burden of proof lay with the employees, the procurement of such records exceeded the employees’ capabilities. Therefore, they only had to provide evidence giving “just and reasonable inference.”

Complying with state and Federal regulations regarding employment recordkeeping can help protect your company’s interests.

Being your own boss

Running a business out of your home can be a lifestyle shift, particularly if you share your space with family or a roommate. It may not be as easy to leave work at the office when the office is at home. Having a designated office space can help minimize the impact your home-based business has on your family. It may also minimize stress and increase the safety and security of your work. In addition, consider installing a separate business phone line and Internet connection to further separate work from home.

Besides creating an inviting and exclusive workplace, consider the following tips for time management and planning of your home-based business:

• Create a project schedule to help you manage your time more efficiently.
• Minimize home distractions that might reduce your efficiency.
• Log your work on a daily basis to track trends in your working habits.

A home-based business can create challenges involving where work ends and home begins. However, creating a designated office space, setting reasonable deadlines, and tracking your progress may help you adjust to the unregulated nature of a home office.