Navigating Workers' Compensation in Texas: A Must for Small Businesses

At Wayne Lilly Insurance, we often encounter small business owners in Texas who are unaware of the intricacies of workers' compensation laws. While it's true that Texas does not legally require businesses to carry workers' compensation insurance, understanding the implications of opting out is crucial.

The Reality of Workers' Compensation in Texas

Workers' compensation insurance provides wage replacement and medical benefits to employees who suffer job-related injuries. However, it's not just about employee benefits; it's also a layer of protection for your business.

Key Points Texas Business Owners Should Consider

1. Legal Responsibility Remains: Even though workers' compensation insurance is not mandatory in Texas, the responsibility to cover an injured employee's medical bills and lost wages doesn't disappear. Without insurance, this burden falls entirely on your business.

2. Legal Costs: One of the less discussed aspects is the coverage of legal costs. If you don’t have workers' compensation insurance and an employee sues your business for injuries, your business is responsible for all legal costs. In contrast, with insurance, these costs are typically covered under the policy.

3. Burden of Proof: If you're uninsured and face a lawsuit, the onus is on your business to prove that the injury was not due to your negligence. This can be a complex and costly process. However, with workers' compensation insurance, the burden of proof shifts - it becomes the employee's responsibility to prove that the injury was due to the company's fault.

Real-Life Implications

• The Case of a Dallas Bakery: A local bakery chose not to have workers' compensation insurance. When an employee was injured, not only did the bakery have to cover medical expenses, but they also faced a lawsuit. The legal defense costs were substantial, impacting the bakery's finances severely.

• The Houston Retail Store Scenario: Another small business, a retail store in Houston, had workers' compensation insurance. When an accident occurred, the insurance not only covered the employee's medical expenses and a portion of their wages but also took care of the legal expenses when the employee filed a claim.

Conclusion

The decision to forego workers' compensation insurance in Texas should not be taken lightly. While it's not legally mandated, the risks associated with not having it can be significant - from financial burdens to legal complexities. As a small business owner, it’s wise to consider these factors and choose the path that best protects both your employees and your business.

Unwrap the Gift of Time: Time Management & Stress-Relief Strategies for the Holiday Season

As the holiday season approaches, our to-do lists often grow longer than Santa’s naughty or nice list. From holiday shopping to family gatherings, it seems like there's never enough time to get it all done. But fear not! Here are some time management and stress-relief strategies to help you sail smoothly through the holiday season.

1. Prioritize Your Tasks

Start by making a list of everything you need to do. Then, prioritize that list. Not everything is equally important. Assign deadlines to your tasks and tackle them in order of importance. This will help you focus on what truly needs to be done, rather than getting sidetracked by less critical tasks.

2. Schedule Your Shopping

Avoid the last-minute holiday rush by scheduling specific days and times for your holiday shopping. Consider doing your shopping at off-peak times to avoid the crowds, or better yet, take advantage of online shopping to save both time and stress.

3. Delegate and Outsource

You don’t have to do it all yourself. Delegate tasks to family members or outsource things like house cleaning or meal prep. Many hands make light work, and it can be more enjoyable to do things as a team.

4. Set Boundaries

It’s okay to say no. You can’t attend every party or event. Choose the ones that are most important to you and politely decline the rest. Overcommitting can lead to unnecessary stress and exhaustion.

5. Make Time for Yourself

Amidst the hustle and bustle, don’t forget to carve out time for yourself. Whether it’s reading a book, taking a bath, or going for a walk, find activities that help you relax and recharge.

6. Stay Organized

Keep track of your commitments and what you need to get done with a planner or digital calendar. Being organized can significantly reduce stress levels by giving you a clear picture of your commitments and how to manage them.

7. Embrace Imperfection

Not everything has to be perfect. Sometimes, good is good enough. Don’t stress over having the perfect decorations, the perfect meal, or the perfect gift. It’s the spirit of the season that truly matters.

8. Reflect and Be Grateful

Take time to reflect on what the holiday season means to you and what you’re grateful for. This can provide a deeper sense of purpose and reduce stress by shifting focus away from commercial aspects and towards personal joy and gratitude.

Remember, the holidays are a time for joy and celebration, not stress and deadlines. By managing your time wisely and taking care of your well-being, you can find peace and happiness in the holiday season. Give yourself the gift of time and relaxation – you deserve it!

From my family to yours, wishing you a season filled with peace, joy, and treasured moments.

If you found these tips helpful, please share this post and spread the holiday cheer! And if the season brings up questions about how to manage holiday-related risks or insure those valuable gifts, feel free to reach out. My door is always open for advice or a friendly chat, with no obligation. #HolidaySeason #TimeManagement #StressFreeHolidays #HolidayJoy

Life Insurance: Permanent vs. Term

As trusted insurance professionals, our mission is to help you make the most informed decisions when it comes to protecting your most valuable assets and planning for your future. Today, we are going to delve into a topic that often stumps even the most experienced policy shoppers - the differences between term insurance and permanent insurance, and the unique benefits each type offers.

What is Term Insurance?

Term life insurance, as the name suggests, provides coverage for a specific term or period. These periods typically range from 10 to 30 years. If the policyholder passes away within this period, the death benefit will be paid out to the beneficiaries. However, if the policyholder outlives the term, the coverage ends and no benefit is paid.

Benefits of Term Insurance

1. Cost-Effective Coverage: Term insurance usually comes with lower premiums compared to permanent insurance. This makes it an affordable option for those seeking high coverage at a lower cost.

2. Simplicity: Term insurance is easy to understand. You pay your premiums, and in return, your beneficiaries receive the death benefit if you pass away during the term.

3. Flexible Time Frames: You can tailor the term duration based on your needs. This flexibility allows you to cover specific financial responsibilities like a mortgage or your children's education costs.

What is Permanent Insurance?

Permanent insurance, often referred to as whole life insurance, provides lifelong coverage. Unlike term insurance, permanent insurance combines a death benefit with a cash value component. This cash value grows over time and can be borrowed against or even cashed out during the policyholder's lifetime.

Benefits of Permanent Insurance

1. Lifetime Coverage: As long as premiums are paid, permanent insurance provides a lifelong safety net. It guarantees that your beneficiaries will receive a death benefit no matter when you pass away.

2. Cash Value Accumulation: The cash value component serves as a tax-deferred savings account that grows over time. It can be borrowed against for emergencies, to supplement retirement income, or for other significant expenses.

3. Fixed Premiums: Most permanent insurance policies have fixed premiums, meaning your payments won't increase over time. This predictability can be an advantage when budgeting long-term.

Which One Should You Choose?

The choice between term and permanent insurance depends on your individual needs, financial situation, and long-term goals. If you're looking for affordable coverage to protect against unforeseen circumstances during a specific period, term insurance could be a suitable option.

On the other hand, if you want lifelong coverage, the ability to accumulate cash value, and are willing to pay higher premiums, you might consider permanent insurance.

As with all insurance decisions, it's crucial to evaluate your personal circumstances and discuss with a qualified professional. Our team at WayneLillyInsurance.com is always available to help you navigate these decisions and find the insurance policy that best suits your needs.

Remember, choosing the right life insurance policy is not just about the here and now, but about planning for the future and leaving a legacy of security for your loved ones. We're here to help guide you on that journey. Contact us today for a comprehensive consultation.

Wayne Lilly Insurance, we've got you covered for life.

4 Tips on How to Protect Your Home While on Vacation

The summer season is here! For many of us, the warm, sunny months are the ideal time to enjoy a vacation. However, before planning a getaway, you should consider what steps you might take to protect your home, so you do not return to find any unpleasant surprises. Personal insurance can be a lifesaver if your home is robbed, vandalized, or affected by a severe weather event.

Taking the Right Steps to Protect Your Home

Part of enjoying your vacation includes returning to a home just as you left it. These are some precautions you can take to protect it while you are away:

1. Make it appear as if someone is home: If it looks like your home is empty or that you are away on vacation, burglars are more likely to target it. To avoid making a vacant home obvious, set a timer on your lights and television so they automatically turn on and off at certain times to give the impression that someone is still home. Ask your neighbor to collect your mail so it doesn’t pile up at your door. It is helpful to leave a car parked in the driveway if possible.
2. Move your spare key: If you keep it hidden, such as in a flowerpot or above the front or back door, it is time to choose a better hiding place. A thief will search for the most common spots homeowners hide keys, so don’t make it easier! Instead, hide the key in a better location or leave it with a neighbor or friend.
3. Avoid oversharing on social media: Many of us love sharing the details of our vacation on social media, but if you share every detail of your itinerary online, it could compromise the safety of your home. If your social media is not already set to private, reset it before you start sharing photos or videos of your trip.
4. Unplug your appliances: Nothing is worse than finding out your home was damaged or destroyed in a fire while you are away on vacation. To help avoid this disaster, unplug any unnecessary non-timed appliances, check your smoke alarms, and replace batteries if needed. If you plan on having a house-sitter, let them know where they can find a fire extinguisher, and leave them a list of all important phone numbers, including fire, police, and family members.

No matter how well-prepared you are, accidents can still happen. Your home and possession must be protected with the right insurance policies. While you may have homeowners insurance, you may want to put personal property insurance in place to cover the replacement costs of furniture, clothing, furniture, and other valuables.

Purchase Personal Insurance to Safeguard Your Most Treasured Assets\

Before you go on vacation this summer, make sure you have all the insurance coverage in place to protect your home, property, and possessions. We can help you find the policies that suit your situation at a price that you can afford! Connect with our insurance agents today to find the perfect policy for you.

Understanding the Surge in Home Insurance Premiums

In recent years, homeowners across the country have noticed a dramatic increase in their insurance premiums. A myriad of factors are behind this trend, and it seems like this escalation is here to stay. So, what's driving this steep rise? Let's delve into the key reasons contributing to the surge in homeowners insurance premiums.

1. Rising Construction Costs: An escalation in building material costs is a substantial contributor. Supply chain disruptions and inflation affecting the economy have seen the cost of essential materials such as wood and steel increase significantly. In fact, the cost of construction materials and labor has surged roughly 30% over the last couple of years, contributing to the overall rise in homeowner's insurance premiums.

2. Increased Severity and Frequency of Extreme Weather Events: Climate change has given rise to more frequent and severe weather phenomena, including hurricanes, tornadoes, and floods. The extensive damage these events cause translates into a higher financial risk for insurance companies, which inevitably reflects in increased policy premiums.

3. Growing Claims Activity: The last few years have seen an uptick in homeowners insurance claims. This is not surprising given the data from the National Insurance Crime Bureau, which shows an alarming 27% increase in insurance fraud cases from 2017 to 2019. Coupled with factors such as an aging housing stock, the rise in extreme weather events, and the escalating cost of living, it's clear why insurance claims are on the rise.

4. Regulatory Impact on Rate Forecasting: In states like California, insurance companies are prohibited from using comprehensive forecasting to determine future claims costs. Instead, they must base their rates on 20-year-old data and are not allowed to increase rates in line with cost increases they foresee. This regulation can result in significant losses for insurers, potentially forcing them to spread the costs across policyholders in other states to maintain profitability.

5. Exodus of Large Insurance Companies: High-risk areas, particularly coastal regions, are witnessing an exit of major insurance companies. This results in reduced capacity, leading to higher insurance costs for the homeowners remaining in these areas.

6. Surge in Reinsurance Costs: Reinsurers, which insurance companies depend on to balance their risk, are not regulated and can set their rates freely. Given their growing reluctance to participate in high-risk areas, smaller companies in these regions are left with skyrocketing reinsurance costs and limited capacity, subsequently driving up premiums.

7. Population Increases in High-Risk Areas: More people are moving to areas prone to catastrophic risks, escalating the exposure of insurance companies. With higher numbers of catastrophic events (like the Ice storm in Texas and multiple hurricanes), insurance companies are faced with more potential payouts.

8. Elevated Litigation and Fraud Costs: Higher litigation costs associated with claims and an increase in insurance fraud compared to the past further contribute to premium increases.

Bob Hartwig, Ph.D., a leading expert in the insurance industry, recently noted, "Increasing severity of natural disasters, as well as escalating replacement costs of homes, are putting considerable upward pressure on insurance premiums. This is a trend we expect to continue as the impact of climate change intensifies."

The current climate change scenario and the increasing frequency and severity of extreme weather events suggest that homeowners insurance premiums are set to continue their upward trajectory. In fact, according to a 2022 survey by the Insurance Information Institute, the insurers' combined ratio had risen by 3.9% compared to the previous year. This further indicates that insurance companies are paying out more in claims and expenses relative to the premiums they collect, leading to increased premiums for policyholders.

At Wayne Lilly Insurance, we are committed to keeping our policyholders informed and working tirelessly to provide the best possible coverage options amidst these challenges.

If workers comp is not required, why bother buying it?

At Wayne Lilly Insurance, we are dedicated to educating our community about the importance of different types of insurance policies. Today, we are focusing on a particularly crucial type: Workers' Compensation. This insurance isn't merely a policy. It's a lifeline, a safety net, and a sign of respect for those whose contributions drive our local businesses and the broader Texan economy.

The reality is, accidents can happen in any workplace, despite our best efforts to maintain safe working environments. When these unfortunate incidents occur, Workers' Compensation policies serve a vital role, covering medical costs, assuring wage replacement, and providing disability benefits.

In our state of Texas, Workers' Compensation isn't mandated for all employers, but choosing to opt into it holds notable advantages for both businesses and their employees. Employers who offer Workers' Comp not only safeguard the financial stability and well-being of their workforce but also protect themselves against most workplace accident-related lawsuits.

However, there's a critical aspect that deserves highlighting: in Texas, even in the absence of Workers' Compensation coverage, employers remain accountable if an employee is injured on the job, irrespective of whether the employee was engaged in illegal activity at the time of the accident. It's a pivotal consideration and makes the decision to invest in Workers' Compensation coverage not only thoughtful but also strategically beneficial.

Our commitment to doing what's right extends beyond mere legal compliance. A comprehensive Workers' Compensation policy sends a clear message to your workforce that their health, safety, and invaluable contributions are acknowledged and appreciated.

We encourage all employers to revisit their Workers' Comp policy. Ensure it's robust and that it extends the coverage that your diligent employees rightfully deserve. If you're an employee, it's equally important to understand your rights and the benefits that you are entitled to.

Here at Wayne Lilly Insurance, we are dedicated to working together with all of you to make Texas not just a fantastic place to work, but also a safe and secure one. Your safety is our priority.

Feel free to reach out to us for any guidance on Workers' Compensation policies, or for any other insurance needs. We're here to help you navigate and secure your peace of mind.

#WorkersComp #TexasBusiness #SafetyFirst

Hurricane season is near. How to prepare your home for severe weather

Each year, the country is hit with hurricanes, tornadoes, hailstorms, super storms, flooding, and more. Of course, you have insurance to help you recover. But knowing and doing a few things now—while the weather’s fair—can help you and your family stay safe and help you protect your property if the unexpected happens.

Here are a few things you should know before a storm hits:

1. The elevation level of your property—It’s a good idea to know your home’s elevation and prepare accordingly. FloodTools.com has some great tips for planning for a flood. And although you might not be able to prevent flood damage, you could take measures to avoid losing truly irreplaceable things.

2. Where to find shelter—When a storm hits, the last place you want to be is outside. Even a car is not a reliable place to take refuge. It’s best to think through where to go beforehand—to have a plan. Basements, the bottom floor of a building, or under a stairwell are good places to wait out a storm.

3. Evacuation routes—When appropriate, local officials will provide information about evacuation routes through the media. But these routes are typically available at any time online. It’s a good idea to be familiar with these routes before a storm hits so you know where to go.

4. A safe place for your car—Ideally, your car would be with you as you evacuate. However, if you can’t take it with you, park it indoors or on high ground away from potential sources of damage (falling debris, projectiles, etc.). Be sure to have a tarp and waterproof tape handy to seal your windows and doors, as well.

5. How to know a storm is coming—You can spot a tornado brewing by the dark, often greenish, sky; big hailstones; and large, low-lying clouds. You’ll also hear a roar, similar to a freight train. In the case of a hurricane, look for increasing ocean swells, frequency of waves, and driving rain 36 to 72 hours before it hits.

And, a few things to do:

1. Keep your car fueled up—Don’t wait until it’s time to evacuate to realize you don’t have enough gas. Gas stations will often be closed during emergencies, and the pumps won’t work if there’s a power outage. Be sure to have at least a half tank of gas at all times.

2. Keep the landscaping in check—Well-trimmed trees and shrubbery are more wind resistant. And that means they’re less likely to become flying battering rams in a storm.

3. Have materials ready to board up your windows—Storm shutters offer the best protection, but if you don’t have them, 5/8 inch marine plywood is a good alternative. Cut these boards to fit in advance, and keep them at the ready so you can use them when it’s time. Check out this website for instructions on how to properly board up your house.

4. Make an emergency kit—In the event of a severe storm, you might have to wait for days before help arrives. Have enough food, water, and basic supplies to last at least 72 hours.

By no means is this list exhaustive, but hopefully it gets you pointed in the right direction. And, of course, there’s no shortage of helpful tips you can glean from the Internet. For example, Ready.gov is a great resource to mine for more proactive ways to be … well, ready. And, there are many mobile apps these days that offer everything from storm tracking to tips for being prepared.

Knowing what to expect, and doing the prep work in advance, will help you weather the storm as best as possible.

“Plan for what is difficult while it is easy, do what is great while it is small.”—Sun Tzu, The Art of War

Be prepared with the right insurance coverage

To learn more about this or any of your insurance needs, please contact a team member at Wayne Lilly Insurance

Choosing the Right Homeowner's Insurance: Policies, Perils, and More!

Choosing the perfect homeowner's insurance policy can feel daunting, but fear not. I'm here to guide you through the process and highlight some crucial considerations.

1. Grasp Your Coverage

Standard policies generally offer four types of coverage:

• Dwelling: Protects the physical structure of your home.

• Personal property: Covers your belongings both inside and outside the home.

• Liability protection: Covers you against lawsuits for bodily injury or property damage.

• Additional living expenses (ALE): Covers living costs if your home is uninhabitable due to a covered loss.

2. Estimate Your Home's Value

Ensure you know the value of your home and the cost to rebuild it, as well as the worth of your personal possessions. This will inform your coverage needs. Replacement cost estimators are commonly used to establish this value.

3. Named Perils vs. Open Perils Policies

'Peril' refers to the specific risks or causes of loss covered by your policy. Named perils policies cover only the risks explicitly listed in the policy. Open perils policies, on the other hand, cover all risks except those specifically excluded.

4. Additional Coverage and Sub-Limits

Standard policies do not cover flood or earthquake damage. If you're in a risk-prone area, consider adding these coverages. Also, note that some high-value items like jewelry might have coverage sub-limits. You might need additional coverage for such items.

5. Roof Schedules

Roof schedules can impact your claim payout. Some policies offer full replacement cost, while others may depreciate the value based on the roof’s age. Be sure to understand your policy's stance on this.

6. Compare and Choose

Get quotes from various insurance companies and consider their coverage, reputation, and stability. Remember, the cheapest isn't always the best.

7. Understand Deductibles and Premiums

A higher deductible means a lower premium, and vice versa. Choose a deductible you can comfortably afford in case of a claim.

8. Review Your Policy

Regularly review your policy, especially after major life events.

As your trusted independent insurance agent, I'm here to answer any questions you may have. Let's work together to ensure your home is protected just the way it deserves!

Wayne Lilly Insurance

Understanding the Different Types of Auto Insurance Coverage

When it comes to auto insurance, one size definitely does not fit all. Just as your vehicle serves a unique purpose in your life, your auto insurance policy should be tailored to fit your needs and the specific risks you face as a driver. That's why it's important to understand the different types of auto insurance coverage available to you.

Liability Insurance

Liability insurance is required in most states and covers bodily injury and property damage that you cause to other people in an accident. It's usually expressed in three numbers representing (in thousands) your liability limits for bodily injury per person, bodily injury per accident, and property damage, respectively.

Collision Coverage

Collision coverage pays for the damage to your car resulting from a collision with another vehicle or an object, such as a tree or a telephone pole. This coverage comes into play regardless of who is at fault in the accident.

Comprehensive Coverage

Comprehensive coverage pays for damage to your car caused by events that are out of your control. This includes things like theft, vandalism, fire, natural disasters, and damage from animals.

Uninsured/Underinsured Motorist Coverage

Unfortunately, not all drivers on the road carry auto insurance, despite the legal requirement to do so. Uninsured motorist coverage protects you if you're in an accident with an at-fault driver who doesn't have auto insurance. Underinsured motorist coverage, on the other hand, protects you if the at-fault driver has auto insurance, but their liability limits aren't enough to cover your post-accident expenses.

Medical Payments Coverage/Personal Injury Protection

Medical payments coverage and personal injury protection (PIP) both pay for medical expenses for you and your passengers after an accident. They can cover things like hospital bills, surgery, and rehabilitation. The difference is that PIP also covers additional costs like lost wages and, in worst-case scenarios, funeral costs.

Gap Insurance

If you have an auto loan, you might owe more on your car than it's actually worth. In the event of a total loss, gap insurance can cover the difference between the value of your car and what you still owe on it.

Remember, it's important to tailor your auto insurance policy to fit your needs. Consider factors like the age and value of your car, how much you drive, where you live, and your financial situation. Your independent insurance agent can help you assess your risks and make sure you're properly protected.

Remember, understanding your coverage options is key to not only complying with the law but also ensuring you're adequately protected in case of an accident. After all, the purpose of insurance is to help you recover from unexpected events, and choosing the right auto insurance coverage is a big part of that process.

While this is a basic overview of auto insurance coverage types feel free to reach out to a team member at Wayne Lilly Insurance for a more detailed understanding and conversation.