Worcester Business Journal

18 Worcester Business Journal | November 13, 2017 | wbjournal.com I n the aftermath of a severe weather event such as a super storm, blizzard, or simple acts of nature like roof collapse from a tree, businesses face the unenvi- able prospect of securing their premis- es, counting the costs of property dam- age and business interruption, and try- ing to rebuild. This is no easy task. Industry experts have estimated that the cost of Hurricane Harvey could top $100 billion and Hurricane Irma could end up costing $300 billion. The first step is to ensure the safety of employees, the public, contents and premises. Take any reasonable steps you can to reduce the interruption to your business and secure your data and stock against further losses. Temporary repairs can prevent further damage to business premises and con- tents, and prevent injury to employees and members of the public. Make sure to obtain quotes from reputable trades- men and document all the damage before conducting temporary repairs. And it's smart not to authorize any permanent repairs until your insurer gives the go ahead. Swift, effective communication In the aftermath of a disaster, com- munication is key. Contact your insur- er as soon as possible. Claims will probably be handled on a first-come, first-served basis. Contact your 10 T H I NG S I know about . . . Life insurance By Ryan A. Wagner Wagner is a financial representative with Robert Fine & Associates in Framingham. Reach him at rwagner@ robertfineassociates. com. K N O W H O W How to manage business losses after severe weather T hough we have touched on this topic before in this space, it's importance to revisit – plus, new findings on best implementation prac- tices are constantly evolving. The 2012 research paper "Tell Me What I Did Wrong" by S.R. Finkelstein and A. Fishbach, for instance, dispels the age- old idea that a "feedback sandwich," or buffering what could be perceived as negative feedback with positive acco- lades, is effective. Instead, they found, employees tend to only hear the posi- tive remarks, not the ones they need to build upon to improve. Follow up. It seems obvious, but when managers don't circle back around with that team member who received feedback, effectiveness is greatly diminished, says Jacob Shriar at OfficeVibe.com. "The feedback is pretty pointless unless the employee improves and gets better at what they do, so make sure to … see how it's going." Major errors call for deep breaths. When there is an obvious large ball dropped at work, try and resist point- ing out the obvious: They messed up, says Scott Halford at Entrepreneur.com. "Start by asking his or her perspective on the situation," he advises. "Ask if he or she understands everything you expect. Inform the person … you're there to help him or her succeed." Do not assume they know. The American Management Association website cites a publication by Gary S. Topchik in an article advocating the importance of feedback. Many manag- ers don't mean to give their team mem- bers the silent treatment, but do it any- way. "They think their team members already know when they are doing well or when there are problems. Or they think feedback will have little effect on performance," the article states. "But many team members do not know where there are problems … It's unfair to employees to prejudge their response to feedback," the article notes. BY SUSAN SHALHOUB Special to the Worcester Business Journal 10 1: O f f e r i n g f e e d b a c k 10) Where to get it. Some employers will offer life insurance as a benefit of employment. You can also get your own policy by working with a licensed agent. 9) When to get it. As early as possible. Life insurance cost is based on your gender, age, and health. 8) How much to get. A very simple calculation is to take your current income and multiply it by how many years you have left to work before retirement. 7) How long to get it for. You will typically want insurance to cover you until you can retire, or until you die. 6) What type to get. Either term and permanent. Term expires after a term of time and permanent – you guessed it – lasts as long as you do. 5) Beneficiaries. Ideally you would like the beneficiary to be a revocable trust you have set up while doing your estate planning. 4) Taxes. You are going to want to pay your premiums after you have already paid your income taxes. If you do it this way, most times the death benefit will be tax free to your beneficiary. 3) Changes. Life insurance is quite flexible, especially if purchased through reputable companies. You can change the beneficiary, the amount of coverage and the type. You can also ask the insurance company to reevaluate your health rating if you lost weight or stopped smoking to reduce your premium. 2) Cost. The younger, healthier, and less coverage you want, the less the premium will be. 1) Guarantees. Life insurance can have four things guaranteed in writing. The things you want to look for being guaranteed are: 1) The death benefit amount 2) The premium amount 3) How long you have to pay the premium for 4) The cash value amount (if it is a permanent policy). BY JOEL MAKHLUF Special to the Worcester Business Journal W W employees to ensure they're safe, warn them of any business closures in advance and enlist their support in contacting others. Reach out to your customers and suppliers. People are generally understanding about delays and service disruptions, provided you keep them informed. Proactive planning and documentation Be proactive in considering poten- tial losses. Can you move stock to a more secure location? Is it possible to reroute deliveries to keep your supply chains open? Do you need to secure your property against unauthorized entry? Don't dispose of damaged stock or contents until you get the okay Joel Makhluf is a vice president at Needham insurance software provider Enservio and the director of the Property Innovation Summit. Contact him at jmakhluf@enservio.com. from insurers. Keep detailed records on everything, including receipts for all repairs and documentation to support any claim for damage and business interruption. If possible, take photographs. Coverage and claims Check the coverage provided by your insurance policies. Even if you don't have coverage for flood damage, you may still be covered for damage caused by high winds, such as damage to a roof caused by tree branches. Damage to vehicles may be covered under your auto policy. Few are aware the Federal Emergency Management Agency does not offer financial support to a business in cases of losses stemming from a presidential- ly declared disaster, but it can provide helpful advice. If you have no insur- ance, or partial coverage, and you have registered with FEMA, you may able to apply to the Small Business Administration for a low-interest loan to cover operating expenses and finan- cial obligations. Loans are only offered if you are unable to get credit else- where, so contact your bank and any other sources of credit to see whether they can extend further credit or agree to defer payments. Business losses after a hurricane can be devastating, but if you act decisively, keep effective lines of communication open, document everything, and work with your insurer, you can weather the storm and get your business back on track swiftly. W

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