Insurance Insights ~ June 1998

Employee Handbooks: Help or Hindrance?

Certainly having an employee handbook makes sense. Your employees need direction. Safety in the workplace should play a large role in your motivation for setting up an employee handbook.

However, employers are reluctant to take the initiative on their own, not knowing where to begin. Many employers have turned to software programs to design and customize their own employee handbook by simply editing the pre-set material they provide. This is a good place to start, and is certainly better than having no employee manual.

What you should consider, though, is whether your employee handbook is legally safe. Your liability increases with every rule you put in that book. Think about it. Courts are now ruling that distributing company manuals to your workers creates a binding contract between you and your employees. As such, you are legally obligated by all the provisions and policies in your handbook. Even disclaimers may not hold up in a court of law, but it's still far better to have one than not.

Some precautions to take when compiling your handbook:

• Keep in mind that anything you put in writing, you may be committed to later.
• Always include a disclaimer explaining that this guide does not represent a contract between the company and the worker, and that the employer has the right to change the policies in the guide at any time -- and for any reason.
• Make certain that you insert the disclaimer in every employee manual -- including supervisors.
• Once you have completed your employee manual, consult with your legal counsel for further suggestions on limiting your liability.

No matter how cautious and conscientious you are about creating a handbook that is "legally safe," there may still be a court decision made against you. Don't let this discourage you! Taking the above precautions can lessen your degree of liability. Employee handbooks do a lot of good. They should address many safety issues, and as a result, prevent many work-related injuries. That benefits everyone!

Canadian Trip in Your Future?

Before leaving for your trip to Canada, make sure you contact your automobile insurance agent for a "Canadian Non-Resident Inter-Province Liability Insurance Card." You will need to carry this card with you if you are crossing the border with your vehicle.

Although Customs does not require the insurance card to be shown when entering Canada, individual provinces and territories can impose fines and penalties should you commit a traffic violation or have an accident and are unable to produce it. Such actions could range from a warning to impoundment of your vehicle depending upon the nature of the incident.

You now know why you should "carry the card." Better to be safe than sorry.

Getting Married?

Planning a wedding is full of decisions! Along with the considerations of the ceremony and honeymoon, couples must look ahead and plan for proper insurance protection. The following tips can help you plan ahead and avoid unforseen problems.

• Purchase homeowners or renters insurance. Since you will be making large purchases, such as furniture, don't delay in securing protection immediately. You will also be receiving many valuable wedding gifts, so make certain limits of coverage are high enough, and have this coverage in force before the wedding.
• Are you holding your reception at a rented facility? If so, the owner of the facility may require you to provide a "certificate of insurance," and will usually have a minimum amount of liability coverage they will accept. If not properly insured, you or the host may be liable for damages as a result of allowing guests to consume alcohol and then drive.
• Worried about the weather? Believe it or not, there is protection available in case the weather does not cooperate, and you need to cancel your outside or winter wedding plans.
• Insure your rings. These rings represent a valuable investment, and while there is a limited amount of protection against loss of jewelry by theft, it may not be enough to replace your rings. Also, if you are traveling, you want to make certain that coverage is "worldwide."

When the celebration is over, and you have arrived home from enjoying your wedding trip, there are still a few loose ends to take care of.

• Update your auto policies. By combining your policies, you will be able to take advantage of any savings available through multi-car discounts. Also, don't forget to make any necessary name, address, and mileage changes!
• Check your home or renters insurance. Do a home inventory. This can be done with an inventory record book or with a video camera. Either way, it is important to total the value of your contents, and make certain you carry the correct amount of insurance protection for your belongings.
• Purchase or update your life insurance program. This purchase is necessary, so that in the event of untimely death, the funds would be available to cover debts such as credit card accounts, as well as house and car loans. By purchasing life insurance now, you can take advantage of low premiums and premier rate classifications.

Incorporate these tips with your wedding planning, and you can relax, knowing that your new life as a married couple is well protected.

INSURANCE INSIGHTS is an electronic newsletter published monthly by G. C. Weimer Associates, Inc. Information contained herein is accurate to the best of our knowledge and belief as of 6/1/98. If you have a topic of interest for a future issue, e-mail us at info@gcwinsure.com.