Q4 December 2016 tips to help process: inthe maybe liability you weren’t anticipating. Here are afew create of Lack will start. specificity headaches, delays, and done. construction Agood contract is first the place to management of risk the associated with work the being and scheduling timelines. An often forgotten topicthe is drawings, budgets for material, appliances, subcontractors, Most of effort the ina remodeling endeavor revolves around other details. head… at least for some. For is in me, devil the to having visions of sugar plums dancing in your appliances, cabinets, and updated lighting is akin Breathing life new into adated kitchen with new by by 2.) 1.) Renovation Tips Megan Siburt are provided being to protect your interests. to make sure proper the endorsements and wording Have your insurance agent certificates the review general contractor. doing work for you, including sub-contractors of a certificates Secure of insurancefrom contractorsall Personal Insurance Account Manager Top 5Home 1

“A People-Enhancing B&B Detroit: Business” 2

5.) 4.) 3.) is insuring your interest up to completion. adequate through project. the Don’t assume builder the find outwhat you to do need to assure coverage is Make sure you contact your homeowner’s insurer to contractor.the It protects also owner the from insolvency of alleviate any liens on placed being property. the of contract the and subcontractors paid to be will completed be will according to specifications the A performance and payment bond assures job the contractorthe provide a performance bond. Why? For larger construction projects consider having of liability insurance including professional liability. If you hire an architect have provide them acertificate LEASE FOR 3 Transparency & Telemedicine 4

1 Brown & Brown of Detroit was recently named Teammates can also take advantage of other perks such as “Sunshine Days,” fitness reimbursement, and the Employee one of metro Detroit’s “Best and Brightest Stock Purchase Program. On Sunshine Days, our office Companies to Work For,” for the sixth year running! spontaneously closes early, so that the team can take advantage While, we’re happy to have another shiny trophy to add to our of good weather or get a head start on enjoying a holiday. Each display cases, for us it’s about much more than bragging rights. fall, teammates can submit receipts from their fitness purchases Our Sterling Heights office truly takes employee engagement throughout the year to receive a 50% reimbursement. We and community involvement seriously. also encourage teammates to participate in the Employee Stock Purchase Plan to earn profits. Employees receive a 15% Our parent company, Brown & Brown Insurance, has a strong discount on Brown & Brown Insurance stocks (NYSE: BRO). culture that trickles down to the local offices. However, each We also conduct employee engagement surveys annually, and office is “decentralized,” which allows our Sterling Heights office truly value and utilize the feedback we receive. to utilize any methods we see fit to accomplish our goals, in terms of employee/community engagement and beyond. Brown & Brown Insurance also encourages a culture of caring. CEO Powell Brown stated, “We have grown up feeling that There are four tenets of Brown & Brown that influence all we have an obligation to give back into the communities in decisions that are made, one of which is that we are in the which we make our living.” This can be accomplished through “People Recruiting & Enhancing Business.” Once we hire volunteering time or financial support, or both. The Sterling quality talent, we strive to retain our teammates long-term Heights team is encouraged to support non-profit organizations through engagement, wealth creation, continued education, and that they feel a connection to, individually and as a whole. opportunities for growth. Through our volunteer policy, each teammate is permitted to volunteer outside of , with pay, for four hours per It is not surprising that most employees would rate salary and quarter. The matching gift program states that the office will benefits as the number one factor that influences their choice of match, up to $50 per calendar year, any donation a teammate workplace- after all, most work in order to support themselves. makes to a non-profit. Each week, we raise for the charity However, there are many other factors that strongly influence of the quarter through our Jean Day . Employees are job satisfaction. We strive to offer a well-rounded package of permitted to wear jeans for casual Fridays in exchange for a “perks” that we hope makes our team happy to spend 40+ hours $5 donation each week. Our most recent Jean Day fundraiser a week with us. raised $1,570 for the Alzheimer’s Association during the third Our Employee Engagement Committee meets monthly to select quarter of 2016. In fact, our office and teammates have donated and plan events to engage our 60+ teammates. In recent months $34,581 to deserving non-profit organizations this year, and we have offered events such as “Relay for Life,” “Healthy Cooking that’s just through the third quarter! Demo with Chef Paul,” “2016 Office Olympics,” “Summer We are extremely proud of all we’ve accomplished in 2016 in the Outing Scavenger Hunt,” and our annual “Chili & Soup Cook- areas of employee engagement and community involvement Off.” Employees from our three divisions often get to know each and are looking forward to an equally great 2017! other better as a result of mingling and working together during these events.

2 Brown & Brown of Detroit How Vacancies in Your Building(s) Affect the Property Coverage in Your Commercial Insurance Policy.

Many commercial building owners are seeking tenants. With changing buyer behaviors (online) and the robust economy, shifts in building usage are causing commercial buildings to have full or partial vacancies. Building owners and tenants need to be aware of how these conditions affect their property coverage in their commercial insurance policies.

If a building is vacant for 60 or more center is now 20% occupied based on by Brian Pilarski, consecutive days before the loss: the building’s total square footage. Over Commercial Agent the weekend, some people vandalized • If loss is caused by theft, attempted & Sales Leader the building, kicking in walls, spray theft, , water damage, painting the floors, ripping materials sprinkler leakage or building glass down, etc. In this instance, there is no breakage, the policy pays nothing, coverage because the building is vacant Vacancy Defined no coverage. Insurance Services Offices (ISO) is by definition. Alternately, using the the leading source of property • If the loss is caused by any other same details and assumption from the and liability risk information. ISO covered cause of loss, the company previous example, let’s suppose there also provides statistical, actuarial will subtract 15% from the amount is a fire from a lighting strike to the and underwriting information to they otherwise would have paid. building. With a fire, there is coverage insurance companies, government but the final payout would be reduced regulators and other interested parties. The ISO language is not adopted by 15%. Most insurance companies use ISO’s by every insurance company. Some language in their policies. independent property policies deviate Vacancy Endorsement from ISO’s definition or require Some insurance companies will allow ISO has defined vacancy for tenants and additional measures to avoid a negation you to continue to maintain full buildings owners: of coverage. AAIS Building and coverage if they are notified within the Property Form uses other wording that 60 day window required in the ISO 1. Tenant – If a tenant’s suite or unit reduces and negates coverage more policy. The insurance companies will does not contain enough business strictly than ISO. add the “Vacancy Permit Endorsement,” personal property to conduct for an additional premium, to allow customary operations, the suite or Other important scenarios/definitions you to maintain full coverage. Other unit is considered vacant. to discuss with your advisors are when insurance companies do not want the an “insured” may not qualify as a tenant exposure of a “vacant building” (as 2. Building – Less than 31% of the or a building owner. Such examples defined in the policy) at all. building’s total square footage is include a tenant carrying the building rented out to others who use it to insurance in accordance with its conduct customary operations or Work With Your lease, receivers in possession, trustees, used by the owner to conduct guardians and other similar entities. Brown & Brown Advisor customary operations. A discussion with your insurance agent is imperative to make sure you are not 3. Buildings under construction or Vacancy Example losing coverage without knowing it. renovation are NOT considered For example, suppose ABC Co owns a A discussion will help determine the vacant. commercial strip center. The anchor insurance company’s interpretation and tenant moved out three months ago, due definitions of the vacancy provisions to the economic conditions. With the and how these will affect your business loss of the large anchor tenant, the strip and building(s).

The Advisor – December 2016 3 Transparency & Telemedicine by Tricia Godin, Employee Benefit Producer

High Deductible Health Plans (HDHP) insurance carriers now include transparency Telemedicine is also increasing in continue to gain traction in 2016, and will tools and telemedicine services with their popularity. It is cost effective for the likely grow in popularity in the coming plan designs, and getting the word out to the employer and appeals to employees who years. Many organizations will continue employee population is key. It is crucial to are paying more in out of pocket costs. to embrace comprehensive strategies to educate and emphasize these tools during The ability to call or have a virtual visit counteract rising medical and pharmacy open enrollment and beyond. through the internet allows employees to costs. Employers are looking at many seek help for minor illnesses or conditions. ways to control these costs while still Transparency tools need to be easily accessible This is often more convenient than trying offering competitive health plan options on mobile phones and tablets, backed by to get an appointment with the doctor, for their employees. live assistance if needed. These tools allow taking time off work, or seeking services employees to get real time information on when traveling. The good news is that with increased things like: HDHP design options, comes much In most states, doctors can electronically • Which pharmacy has the lowest needed and long overdue improvement in prescribe medication for common price on particular prescriptions consumerism. The groups that I have been conditions like sinus infections, earaches, working with recently are taking strides • Comparing facilities for the cost rashes, and more. These virtual services to positively affect change by informing of imaging, MRIs, etc. allow employees to get quality care and educating their employees on areas anytime and are often the same cost as an where they can take charge of their own • Finding a doctor office visit copay. choices and personal health • How to get care when traveling care budgets. HDHPs work best when It is crucial to understand how we can employees have adequate information The number of employees who comparison all help affect positive change in the face and tools at their disposal for making shop is rising. United Healthcare’s first of the rising cost of healthcare through important choices. Employees “shopping Consumer Sentiment Survey polled 1000 adults increased consumerism. Transparency around” and doing their homework on over the age of 18 in the United States. Thirty tools and telemedicine services are key to facilities, procedures, prescription prices two percent have used the internet or mobile affordability. and even providers results in lower costs apps to compare costs of medical treatment, up to the employee, the insurance carrier from the 14% reported in a similar survey done and eventually to the employer. in 2012 by United Healthcare.

Two of the most popular tools I’ve been We were pleased to bring you the latest issue of The Advisor. We hope you found this newsletter interesting and promoting recently are transparency and informative. If you have any questions or topics that may interest you for our next issue, please contact us at: telemedicine. Many of the larger health Brown & Brown of Detroit Ph: (586) 977-6300 35735 Mound Road, Sterling Heights, MI 48310 www.bbdetroit.com 4 Brown & Brown of Detroit