Southwest Florida workers face dangers on the job.

Statistically speaking, Southwest Florida is slightly more dangerous for workers than the rest of the state.

Lee and Collier Counties

There were 30 fatal workplace accidents in Lee and Collier counties between 2007 and 2012. These were all at businesses inspected by the Occupational Safety & Health Administration (OSHA).

Common accidents in the two counties include falling, electrocution, being struck or crushed, and even some incidents of drowning.

Based on the percentage of accidents to number of workers, Southwest Florida is more dangerous than Florida as a whole. The 30 fatal accidents for Lee and Collier counties reflect one out of every 13,079 people employed, or roughly .008% of employment. The state as a whole saw 510 fatal accidents over the same time period. That's one out of every 16,553 people employed, or .006% of employment.


Statistically speaking, southwest Florida is more dangerous than the state as a whole.

A Tragic Example

In Fort Myers Beach, for example, what should have been a simple job to replace condominium moldings turned tragic as two workers were killed.

Dustin Manning and Juan Bocanegra were in an aerial lift in an attempt to get close to the moldings that had been destroyed by woodpeckers. Manning's head touched a power line and both men were electrocuted and killed.

When that happened, Manning's wife was eight months pregnant and had a child that was almost two years old. According to her attorney, the incident left her with "just enormous grief and fear." She is suing for wrongful death damages.

"If you follow the rules, no one's going to get hurt," said Hendrik Uiterwyk, her attorney. "If you ignore the rules, you're exposing people to harm."

He went on to say that the lawsuit is an effort to show that breaking the rules can lead to death. He is also looking to receive compensation for Manning's wife and her two children.

Specifically, the lawsuit alleges that it was Bocanegra's responsibility to ensure that the aerial lift would not come into contact with a power line and to ensure that the lift was a safe distance from any power lines. Additionally, the suit states that Bocanegra had a duty to ensure that the power lines were either de-energized, re-routed, or insulated.

Further, the lawsuit also alleges that the construction company, J Baller Construction, should have warned Manning about the power lines. The suit also claims that the company did not properly train Bocanegra.

The trial is set for October.

Hurricane season is here, and Florida is ready.

The Florida insurance industry is in great shape heading into the 2014 Atlantic hurricane season.

A Long, Welcome Pause

The Sunshine State has seen no hurricanes for the past eight years. Add that to the fact that it's a seller's market in catastrophe bonds and the state is financially prepared handle the costs associated with a hurricane that makes landfall this year.

"Florida is in its best position in a decade," says Robert Hartwig, president of the Insurance Information Institute.

Even better news for Florida, it's is expected that the El Niño weather pattern will keep the number of hurricanes below average.

Forecasters caution, though, that it only takes one major storm to make landfall and cause catastrophic damage.


Florida hasn't seen a hurricane in eight years.

Real Estate Development

There is also a significant amount of real estate development in Florida near coastal waters. That will add to the costs associated with a hurricane strike.

"The reality is, on balance, the state is in a worse position in terms of sensible decisions about building and putting things in harm's way in the coastal area," says Charles Lee, director of advocacy for the Florida Audubon Society.

That's why groups such as Smartersafer.org, a national coalition of fiscal conservatives, housing organizations, environmentalists, and insurers, has recently issued a warning about high-risk development.

"Simply rebuilding isn't enough. We need to start approaching disasters with a focus on preventing losses rather than simply trying to recover from them," says Jimi Grande, a member of the coalition.

A Unique Risk

Florida carries a unique risk because it's situated in a peninsula configuration among warm waters where the Caribbean meets the Atlantic. Warm water is one of the key ingredients for hurricane development and sustainability.

Hurricane Wilma was the last hurricane to strike Florida. That was in 2005, and it marked the end of a series of five hurricanes to hit that state over a two year period.

The eight year pause in hurricane activity in the Sunshine State has enabled Florida's Hurricane Catastrophe Fund, which helps insurance companies pay claims, build its reserves to $13 billion.

Also, the state-run Citizens Property Insurance Corp., which functions basically as an insurer of last resort, will start the 2014 hurricane season with a $7.6 billion surplus.

Florida has history of facing some fierce storms during hurricane season. This year, the state is financially prepared for them.

Are you ready to start a bakery?

So you're interested in starting your own bakery? That's great, because people will always need to eat, so your bread products will be in demand. Of course, people will always want to eat your dessert offerings, so you'll be serving a market comprised of people with discretionary spending habits as well.

That doesn't mean that your bakery will succeed on autopilot, though. To be successful, you'll need to follow certain rules. Here are 4 delicious tips for bakery entrepreneurs.

1. Start With A Business Plan

Every great business starts with a plan. If you want to operate a bakery that consistently shows a profit, you'll need a formal business plan detailing your projected income, your marketing strategy, your management structure, and, of course, what you'll be selling.

2. Perform Market Research

It's likely that most businesses that fail do so because of a lack of market research. That's because their founders never invested the time and effort necessary to determine if there was a market for their products or services.

Before you even consider opening your bakery, evaluate the market in the area. Are there already bakeries near your location? If so, then you should know that you'll be dealing with some competition. On the other hand, if there is no bakery in the area, then maybe there's a very good reason for that. Has someone recently opened a bakery in the vicinity and gone out of business?


Be sure to perform market research before opening your bakery.

3. Pick Your Products

What are you going to bake? Will you be baking cakes? If so, will you be baking them for special occasions like weddings and birthdays? Do you need a cake artist on staff?

Or, are you going to concentrate on different types of breads? If so, what types? Wheat bread? Rye bread? Sandwich bread?

Remember, when you're going into business, you can't serve every possible market. You'll have to pick a few things that are in demand and start by offering those items at your bakery.

It should also be noted that the products that you select to sell will be influenced by the market research you conducted.

4. Once You've Established Your Bakery, Start Marketing

As soon as you have leased your bakery space, purchased your equipment, and started the process of baking your goodies, it's time to let people know that you exist. Begin your marketing efforts with a direct mail campaign to people in the area. Call the local newspaper and let a reporter know that you're in business. You'll likely get an interview and some free PR.

Also, don't forget that in this digital age you can run online ads that only appear to people in your community. That's an inexpensive way to generate buzz about your business.

Opening a bakery is an exciting new business venture. Be sure that it's a successful one by following these tried and true principles.

Your insurance policy protects people other than yourself.

By now you know that your general liability insurance policy protects you, the entrepreneur, as well as your company assets. However, your insurance protects other business stakeholders as well.

Here are 4 types of people covered by your general liability insurance policy.

1. Business Partners

You may have started your company with one or more partners who have also contributed equity to the business. If that's the case, then you should know that your general liability insurance policy covers them as well.

In fact, the coverage is mutual. If you do something negligent and someone sues the company, your partners are covered. Also, if one of your partners does something negligent and someone sues the company, you're covered.

2. Employees

Your general liability insurance policy not only protects people who have a financial interest in the company, it also protects employees as well.

Once again, the protection is mutual. If your employee does something negligent, then your insurance policy can cover you. However, the coverage extends to the employee as well. This is because the employee was acting as a representative of the corporate entity (i.e., your business).


Your business insurance policy protects employees as well.

3. Spouses

Even though you've formed a limited liability company or a corporation, sometimes you can still be held personally liable for damages if someone decides to sue you. In that case, you'll be glad that you have general liability insurance because it will pay for the damages.

But you won't be the only one who's glad if you're married. Your spouse jointly owns your assets with you. If you're sued personally, and lose, then your spouse stands to lose a lot as well. This kind of financial loss can also lead to marital strife, which makes the whole ordeal that much more unbearable.

General liability insurance will not only protect you from forfeiting a significant portion of your personal assets because of a lawsuit, it will also protect your spouse and, of course, the rest of your immediate family as well. And, it just might save your marriage.

4. Subsidiaries

If you've formed a C Corporation and you've decided to purchase the stock or the assets of another company, then you should know that the other company will be protected by your general liability insurance policy as well.

As a rule of thumb, your corporation must own 50% or more of the subsidiary. Otherwise, it might not be covered. This makes sense, because if your corporation does not own at least 50% of the company, then it really can't claim majority ownership.

General liability insurance is indispensable to any small business. This is because it not only protects the assets of the business, but also the people who are directly or indirectly involved in the day-to-day operations of the business.

Do you have company vehicles? Commercial auto insurance is indispensable

So you have a business in South Florida and you operate one or more commercial vehicles? You'll need commercial auto insurance.

Commercial auto insurance will cover you in the event that one of your company vehicles is in an accident and it's the fault of your driver. It will also cover you if it's the fault of another driver, who happens to be uninsured.

The good news is that there are steps that you can take to keep your commercial vehicle insurance expenses to a minimum. Here are four things you can do to prevent your insurance cost from becoming a budget-buster.

Keep Tabs On Your Employee's Driving Records

As with private auto insurance, commercial insurance rates are determined, in part, by the driving records of people who are operating the vehicles. If you have employees with a history of accidents, you're asking for higher rates if you allow them to drive your company vehicles.

Inform prospects for employment that you will be checking their driving records prior to making the hiring decision. Then, work with your local DMV to obtain their driving records. Only hire people with solid, safe records.


Be certain that your employees have excellent driving records

Contact Your Broker About Discounts

Your broker is continually aware of the latest developments in the commercial insurance industry. He or she might have some great options for quality policies that are currently being offered at promotional rates. You can give your bottom line a boost with a great policy that's being offered at a low premium.

Yes, Your Credit Matters

Some insurance companies will actually use your credit when determining your rate. Keep tabs on your credit, both business and personal. If you find an error, be sure to contact the credit bureau that is reporting the error and get it resolved.

If you have a poor credit history, be up front about that with your broker. That way, your broker can work with you to obtain a quality commercial vehicle insurance policy that's still at an affordable price.

Be Sure That The Payment Plan Fits Your Budget

If your business can't afford to pay the entire premium at once, then you can usually opt for a payment plan. However, you should be aware that there can be significant finance charges associated with that payment plan. Those finance charges, while tax deductible, will still have an impact on your bottom line. Be sure that you're not taking a beating with the interest rate on the payment plan.

Again, you'll want to contact your broker, who is already familiar with the terms of payment plans offered by various insurance companies. That way, you'll be able to obtain a plan with affordable terms.

Commercial auto insurance is absolutely necessary if your business is operating one more vehicles. Be certain that you obtain a quality policy at an affordable rate.

Cybersecurity is not an option

If you run a business with any kind of an IT presence (and who doesn't?), then you should be concerned about cybersecurity.

Cybersecurity is the business process of ensuring that your digital information is secure from people who have no reason to access it. Digital information includes your business records, financial statements, legal documents, employee records, and even customer credit/debit card information.

The whole idea behind cybersecurity is that you want your electronic assets to be as secure (if not more secure) than your physical assets. Many business owners take great pains to ensure that their inventory and equipment is well protected. However, they're often not quite as diligent in protecting their data.

Here is why you should be concerned about cybersecurity.

1. A Breach Can Cost You A Lot Of Money

If hackers get into your information system and manage to extract the credit and/or debit card numbers of your customers, you could end up in a lot of financial trouble.

Those hackers might use those credit card numbers that they stole in a way that adversely effects the credit rating of the original card holders. If that happens, you're going to be sued. In fact, you could very well find that you're being sued by a number of people who've had their credit card numbers stolen. You'll probably lose those lawsuits, plus you'll have to pay legal expenses as well.


Quality cybersecurity can prevent a data breach

2. A Breach Can Cost You Your Reputation

If your business is humming along because your customers love what you're offering, the last thing you need is something that hurts your good name. If you're the victim of hackers, you'll have to admit it publicly (because the alternative is much worse). Then, you'll lose the good reputation you enjoyed in your community and maybe even nationwide. You're going to lose customers as well.

3. A Breach Can Cost You Your Employees

Your employee records are probably stored electronically. If hackers gain access to that sensitive information, you could hurt your reputation with your employees. Some of them will be demoralized. Others will quit. You'll find yourself lacking the help you need to keep your business model running smoothly. Of course, in the end, that costs you money in operational efficiency and possibly sales as well.

The way to prevent these types of problems is to ensure that you have outstanding, state-of-the-art cybersecurity for your information system. Even though there is a premium expense associated with quality data security, that expense pales in comparison to what it will cost you if you neglect it.

There is a specific type of commercial insurance for restaurants

So you have a restaurant and you want to protect it with quality insurance? You should know that there are numerous reputable companies that will not only cover your fixed assets, they'll also cover losses resulting from food spoilage caused by a power outage.

The Risks Are There

There is no denying that your business is subject to a multitude of threats. This is especially true if it's located in South Florida, a part of the country that has been the target of more than one hurricane.

However, risks for your business are not limited to natural disasters. Your business could also be the target of employee theft. One of your customers could slip on your property and sue you for medical expenses. Somebody else could get food poisoning at your restaurant, and sue you for that.

The bottom line is this: Your business needs insurance. That way, you'll have coverage in the event that any of these outstanding threats materialize. Without that insurance, your business (and, possibly, you personally) will be liable for damages. That can put you out of business.

Yes, Even Your Food Can Be Insured

A great insurance policy not only protects your fixed assets and prevents your from emptying your bank account in the event of a successful lawsuit, it also helps get your business operations rolling again after a setback.

For example, let's say that, due to a problem with your local utility company, there was a power outage for two days in your area. Everything in your walk-in became spoiled. Everything in your freezer defrosted and is no longer fit for human consumption. You've lost all of the money that you just invested in a week's worth of food.

There is restaurant insurance that will cover you for just such an event. If your business is the victim of a power outage and you your food spoils because of it, you'll get a check compensating you for the amount of food loss.

Once the power comes back on, you'll be able to contact your supplier and get your walk-in and your freezer filled up again. Then, you can get back to running your restaurant normally.


Your restaurant can be covered in the event of food spoilage caused by a power outage

Obviously, when there's a power outage in your area, then you'll also shut down operations. That means that you'll lose the income that you would have gained had your business been open. You'll be happy to know that business interruption insurance will compensate you for the income you lost during the power outage. That kind of coverage is available to restaurants as well.

Commercial insurance is not an option, it's a necessity. Fortunately, there are specific types of commercial insurance that are of great benefit to people in the restaurant industry.

How did workers' compensation insurance carriers fare in 2013?

Workers' compensation companies continue to show year-over-year improvement, according to the combined ratio.

If you're not familiar with that statistic, the combined ratio measures the overall profitability of insurance companies. It's calculated by dividing the operating expenses by the premiums earned and multiplying that value by 100. A number less than 100 indicates insurance company profitability. A number more than 100 means that the insurance company took a loss.

Improvement

For 2013, the combined ratio for all of private workers' compensation carriers was 101, just outside of profitability. However, that number represents a seven point improvement over the previous year and a 14 point improvement over the 2011 figure. In other words, the trend is in the right direction.

"We are finally starting to see an industry in balance with these results," says NCCI President and CEO Steve Klingel. "Today, industry costs are largely contained, claims frequency continues to decline, and the system in most states is operating efficiently. In short, the market is operating as it should on behalf of most stakeholders."

Overall, net written premiums for workers' compensation private carriers increased 5.4% last year to $37 billion. The carriers also saw a year-over-year operating gain of 14%, the highest gain since 2006.

Further, the residual market, those people who are classified as "high risk," showed particularly impressive growth last year. Premiums in that market grew by over 30% and market share increased 8%. Specifically, risks of $100,000 or more grew by 42%


Workers' compensation carriers saw improvement in key metrics last year

Some Challenges Remain

Not all of the 2013 workers' compensation statistics reported show an improvement.

For losses between $1 and $50,000, claim frequency actually increased 3%. Also, average medical cost per lost-time claim grew 3% last year, the same amount as in 2012.

"Overall, the workers compensation line showed a number of positive results in 2013," says Kathy Antonello, NCCI chief actuary.

"Going forward, however, some challenges remain. Slow growth in employment is impeding robust premium growth. And, while investment gains are strong, current yields are likely not sustainable in today's low-interest-rate environment," Antonello says.

She goes on to say that the expiration of the Terrorism Risk Insurance Act (TRIA) is cause for concern to many insurers, as well as the uncertainty associated with the Affordable Care Act (ACA).

Overall, the workers' compensation market remains stable. Recent trends show stable growth in the most important metrics. The challenges that lie ahead are predominantly based on uncertainty as opposed to a downward trend in the market.