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How Homeowner Policies Affect Your Home-Based Business
From a technological standpoint, running a business from home has never been easier. Smart phones, email, fax machines, the Internet, skyping, have all led to a major surge in what have been termed “homepreneurs.” It’s believed more than half of all U.S. businesses are based out of an owner’s home. Unfortunately, many of these people […]
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From a technological standpoint, running a business from home has never been easier. Smart phones, email, fax machines, the Internet, skyping, have all led to a major surge in what have been termed “homepreneurs.” It’s believed more than half of all U.S. businesses are based out of an owner’s home.
Unfortunately, many of these people have become entrepreneurs by necessity, having been laid off during the Great Recession.
“These are people that did not aspire to own a business, but circumstances dictated that they look at freelance opportunities and other business ventures,” says Ken Yancey, CEO of the nonprofit entrepreneur mentoring group SCORE. (SCORE has chapters all across the country including locally in Auburn, Greater Binghamton, Syracuse, and Utica.)
When Cynthia Jermin received a pink slip and lost her dream job at an investment bank, she left with a smile and a plan. “I had a smile on my face, because I was ready. I saw it as an opportunity to embark on this entrepreneurial journey,” says Jermin. Instead of looking for a new position, Jermin, who had been assistant vice president at Credit Suisse, decided to start a business. With financial support of her husband, to avoid going into debt, she turned her guest bedroom into an office and launched Fundamental Life Products from her home in Queens. “It was better to start small and grow, than to rent a space, rent a factory, hire people, and then, six months in, you’ve run out of capital and you have to let everybody go,” says Jermin.
When most people launch a home-based business, they immediately turn their attention to the material means to start their enterprise. They stock up on paper, ink, pens, dry-erase boards, push-pins, and all the technological bells and whistles (computer, printer, modem, etc.) so they can get up and running as soon as possible. But what they never think about is insurance for this home business. So before they know it, they have invested a lot of money and time into this venture but never thought about how they will protect it.
The common misconception is that since the business is in your home, it must be covered by your home-insurance policy. Before you make this assumption, ask yourself a simple question, “What kind of insurance should I buy to protect a business: Home insurance or business insurance?” When the question is phrased like this, the answer is nearly always business insurance.
Although there is some limited coverage for certain types of small-business activities on a home policy, most policies have several exclusions for anything business-related. Since the home policy is designed to protect a home, with its normal risks and exposures, the policy needs to limit or exclude areas not normally associated with a home. So don’t assume your home insurance will protect your small-business activities.
According to an article in Entrepreneur magazine, one reason owners forgo insurance is confusion over what may be already covered by a homeowner’s or a renter’s policy. But most home-business owners have little or no coverage from their homeowner’s policy. People don’t realize that if the UPS guy comes to their home office with a business package in his hand and slips and hurts himself, there is no coverage for that injury in their homeowner’s policy,
The most costly exclusion on a home policy may be in the area of liability. Most home policies provide comprehensive liability protection of $300,000 for normal home activities, but the policy will specifically exclude most business activity. With today’s legal system, liability exclusion is a major financial gap in your protection and leaves you exposed.
Another limitation is business property or inventory. If your home business has any kind of inventory, it could be inadequately protected. If your business involves repairing computers for clients, and at any given time, there could be a dozen laptops sitting on a shelf in your home office, you will not be protected if there is a fire or a flood and that inventory is damaged or destroyed. Although there is some limited coverage on the home policy, the coverage is just that, limited, and with exclusions on where your inventory may be stored.
For example, if business property is stored in an outbuilding or detached structure, the business use of the building voids any coverage for the outbuilding under the homeowner’s policy. The business property stored in the outbuilding is also not covered by most homeowner’s policies. Not all insurance policies are the same. Be sure to review your specific situation with your insurance agent or risk adviser.
A business policy that is based on your type of exposure will cover your business liability, which is the most costly exclusion on the home. You can also choose the amount of liability protection to meet your needs. A business policy is designed to protect your business property and inventory with increased limits that you choose, and better coverage for where you choose to store them.
What can solve the problem for many home-based businesses is an in-home policy, which covers a broader spectrum of contingencies, including loss of critical documents or theft of funds being taken to the bank for deposit. An in-home policy is a plan against injury or theft covering as many as three employees. Rates typically range from $250 to $500 and the plans can cover as much as $10,000 in losses.
“Most serious home-based business owners may want to consider picking up at least an in-home policy,” says Rebekah Marshall, multiproduct insurance manager at the National Federation of Independent Business, or NFIB. “This covers business equipment and liability [for injury],” she says. “That’s important if people are coming in and out.”
So if you have a home-based business, ask yourself these important questions:
– Do clients come to my home?
– Do I have inventory?
– Do I depend on the income from this home business to support my family?
– Do I have business property or equipment?
If you answered yes to any of these questions, you should request an insurance review of your home and home-based business exposures. It is also especially important for anyone starting a home-based business to do a complete risk analysis of your business exposures in order to ensure you have adequate business insurance. That’s because even with optional business coverage, most homeowner’s policies fall woefully short of covering the needs of most home-based businesses.
Starting a home-based business has many potential rewards. After all, Apple, Hershey’s, Mary Kay Cosmetics, and even the Ford Motor Company, all started from someone’s home. But these ventures also bring just as many challenges. Starting a home business is stressful enough without worrying about whether your homeowner’s insurance will always protect your business.
Debra Bouchard, is a personal risk adviser with Ottawa Kent Insurance in western Michigan. She has nearly 30 years experience in dealing with all aspects of personal lines insurance, including home-based businesses. Contact Bouchard at dbouchard@ottawakent.com
Are You And Your Roof Ready for Winter?
As the year comes to an end, it’s time to think about winter’s potential threats to your building’s roof. If we lived in a perfect world, we would never have any roof collapses, because: – Roofs would be properly designed to meet code requirements for snow loading, including any sliding or drifting conditions; – Buildings
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As the year comes to an end, it’s time to think about winter’s potential threats to your building’s roof.
If we lived in a perfect world, we would never have any roof collapses, because:
– Roofs would be properly designed to meet code requirements for snow loading, including any sliding or drifting conditions;
– Buildings would be properly built and inspected during construction to ensure there are no significant structural flaws;
– The roof membrane and drainage systems would be properly maintained, and replaced at the end of their service lives;
– The impacts of changes would be structurally assessed, and roofs reinforced or modified as needed, so as to not create any fragile conditions;
– Roofs would see no more snow-load than that prescribed by the building code.
However, the world is not perfect, and roofs do collapse. It has been our experience that roofs not meeting the first four conditions above represent nearly all of the collapses that happen. In the dozens of collapses (full or partial) that we have investigated, not one has occurred as the result of a roof experiencing snow loading that exceeds that specified by the building code of New York state for new structures.
Buildings that are more than a few years old have had their roofs load-tested by Central New York winters, and so the likelihood of any undetected major design or construction defect is reduced. However, this effect is erased if the roof’s loading conditions have changed. Such is the case when old roofing is replaced by a new roof system with more (or more effective) insulation, or a more effective air barrier. This has been an explicit requirement of New York state’s Energy Conservation Construction Code since 2010.
Obviously, less snow melt can result in more snow buildup. Coupled with the fact that older roofs were designed under older codes that may have had lower snow-load requirements, especially at drift conditions, it becomes clear why the majority of collapses that we have seen have occurred in the years following a roof-replacement project.
So what can building owners and facilities managers do to minimize the risk and reduce the worry and stress caused by not knowing whether they can trust their roofs? Here are a few suggestions:
– Look at your roof from above and below. Is it leaking and causing structural deterioration? Is the drainage system working properly? Is there any damage visible? Are there large hung loads or rooftop loads that don’t seem to be well-supported?
– Has the roof been replaced within the past few years? If so, was the structure given a review by a structural engineer?
– Have there been any additions — large rooftop mechanical units, penthouses, or adjacent building additions — that may have created new drift conditions?
It’s much better and easier to assess a roof’s structural capacity before it’s covered with snow. However, if you find yourself concerned about a snow-loaded roof, here are some things you can do:
– Make sure the roof drains are cleared to allow water from melting snow to drain away, and not get absorbed by the adjacent snow.
– Compile any existing drawings of the building, especially structural, so that a structural engineer can quickly assess the design capacity, if need be.
– If you decide to remove snow from the roof, be extremely careful, on several levels. In general, such work involves issues of personal safety. In addition, damage to membranes can occur unless extreme care is exercised with plastic shovels. Also, develop a structurally sensible plan for removal. Roofs have collapsed during removals due to the inadvertent creation of unbalanced loading conditions.
– Be aware of unusual noises, ceiling or roof sagging, or tilting or cracking of interior partitions. Most roof collapses are preceded by warning signs that can serve as a signal for evacuation. Make sure egress paths are clear and functional, including non-snow-blocked exit doors (which is required of all buildings, per the Property Management Code of NYS).
Finally, if planning a roof-replacement project, plan for success. Ensure that the new roof complies with the energy code for insulation and air-barrier requirements, and conduct at least a “sanity check” of the structure for potential load increases. We can — and should — make our buildings more energy efficient, and do it in such a way as to not cause any dangerous or debilitating conditions, and stop unnecessary worry. That way, we can all enjoy the winter.
Jim D’Aloisio is a principal with Klepper, Hahn & Hyatt, a structural engineering, landscape architecture, and building-envelope services firm based in DeWitt. Contact him at jad@khhpc.com
Oneida County has its act together
Three cheers to Oneida County Executive Anthony J. (Tony) Picente, Jr., who is acting as the catalyst to turn the Mohawk Valley into the next technology hub. Last year, he initiated his “Vision 2020” project to build on the golden opportunity presented by New York state’s investment in the Marcy campus. In his words: “We’re
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Three cheers to Oneida County Executive Anthony J. (Tony) Picente, Jr., who is acting as the catalyst to turn the Mohawk Valley into the next technology hub. Last year, he initiated his “Vision 2020” project to build on the golden opportunity presented by New York state’s investment in the Marcy campus. In his words: “We’re on the path to a new prosperity and building the bridge to get there: We have our people, our institutions, our environment, and our character.”
The foundation of the bridge was laid 20 years ago when the state targeted nanotechnology as a future industry worthy of a large capital investment by taxpayers. The concept, developed in the Capital Region, of creating a cutting-edge technology center ultimately attracted private-capital investment eager to fabricate new products based on the research. Oneida County began its own efforts to attract the nanotech industry back in 1997 with a focus on semiconductors, which today is a $375 billion industry.
The Marcy campus, which houses SUNY Polytechnic Institute (the former SUNYIT), is now home to the new Quad C Center, a 253,000-square-foot facility, which includes a 56,000-square-foot, Class I clean room. The phase I building only represents a little more than one-third of the final structure. Complementing the Quad C Center is the fabrication site, located about a half-mile away on the same Marcy campus. To give you an idea of the magnitude of the project, we’re talking about a proposed building that encompasses 8.3 million square feet. Oneida County is now marketing the fabrication site in anticipation of shortly completing the site preparations.
While nanotech is a sexy subject grabbing most of the headlines, Picente sees a confluence of high-tech industries that includes not only nano, but also the national recognition of Utica College and its cybersecurity programs and the designation of Griffiss International Airport as a national test site for unmanned aerial systems. The Oneida County Exec. also doesn’t buy into “hope” as a strategy that everything will work out. Thus, he offers Vision 2020, which is designed to serve as a strategic plan to ensure that this golden opportunity is converted into high-paying jobs and a growing population for the area.
In June 2013, Picente asked 50 volunteers to join him in a public-private partnership to develop the plan to ensure that the workforce was ready to fill the new positions, guarantee access and opportunity for all residents of the county, and provide housing for a changing demographic for the new workforce. Howard Mettelman, the irrepressible district superintendent of Oneida-Herkimer-Madison BOCES, chairs the education committee; Tony Colon heads up the committee on diversity; and Ferris Betrus directs the housing committee. The committee heads are expected to deliver their reports in January.
The refreshing thing about Picente is that he is results-oriented — he wants more jobs and a growing population. The newly approved Oneida County budget includes millions of dollars he requested to implement the ideas contained in the plan. The next step is to get community buy-in through publicizing the plan and encouraging private-sector companies to invest in their own businesses in anticipation of the projected growth. Finally, Picente sees this as a win-win not just for Oneida County, but also for the region. Once he feels comfortable that the county has its act together, he plans to reach out to neighboring counties to share in the benefits of the Mohawk Valley as a technology hub.
Hats off, too, to Steve DiMeo, the unflappable president of Mohawk Valley EDGE. DiMeo deserves sainthood — or at least the Croix de Guerre or a lifetime supply of Zoloft — for his patience in obtaining zoning changes to the Marcy site, a wetlands permit, commissioning an economic study, obtaining funding, purchasing additional land, and hammering out a tax-sharing agreement with five government entities. After 17 years, his persistence and belief in the project are paying off.
Vision 2020 is the roadmap to lead the area’s economy from a tailspin resulting from the closure of Griffiss Air Force Base to a renaissance of thousands of new, high-paying jobs driven by multiple technology industries. This public-private partnership is working and should be a model for others to follow.
Norman Poltenson is a regional staff writer and publisher emeritus with The Business Journal News Network. Contact him at npoltenson@cnybj.com
State doesn’t need a duplicative weather-detection system
Snowfall totals that came with the historic snowstorm in November made national headlines. Erie and Wyoming counties reported 80 inches of snow. Parts of Jefferson, Lewis, and Oswego counties reported more than 30 inches and as many as 50 inches. Unfortunately, 13 deaths have been attributed to the storm. Following the storm’s wake, Governor Andrew
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Snowfall totals that came with the historic snowstorm in November made national headlines. Erie and Wyoming counties reported 80 inches of snow. Parts of Jefferson, Lewis, and Oswego counties reported more than 30 inches and as many as 50 inches. Unfortunately, 13 deaths have been attributed to the storm.
Following the storm’s wake, Governor Andrew Cuomo traveled to Buffalo and announced that meteorologists did not predict the storm well, and residents were not prepared. While some may not have been prepared for the snow totals, it’s doubtful it had anything to do with the lack of weather predictions.
Following Cuomo’s statements, meteorologists cited reports well before the storm that predicted that as much as five feet of snow could fall because of the amount of cold air blowing over the warm lakes. I recall reading local meteorologists’ reports days ahead of time that explained in detail why conditions were ripe for record snow totals. Still, the governor used the opportunity to promote the new $18 million “NY Advanced Weather Detection System” that will consist of 125 stations that provide data on air, wind, soil, and radiation. The information collected will be relayed to the public.
New York already has 27 stations operated by the National Weather Service throughout the state. Because the National Weather Service is currently providing what most would say is excellent service in New York state, does New York really need to spend $18 million for its own weather-detection system? Most people affected by severe storms would rather have that $18 million spent on helping them recover from the storm. Indeed, here in Central New York, our municipal budgets are often stretched during time of high snowfall because of snow-removal costs. If anything, $18 million would be better used to provide our municipalities assistance with these costs instead of using the $18 million on a duplicative weather-detection system. Further, as has been demonstrated time and time again, despite the best predictions, the weather will still happen and unfortunately cause damage at times.
Spend surplus on infrastructure
The New York State Budget Office estimates the state has close to a $5 billion budget surplus, due to large settlements with banks and financial institutions. The governor is expected to propose his budget in January and lawmakers have until April to negotiate and pass a budget. While we have a long way to go before the final budget passes in the spring, happily, there seems to be a consensus forming that this settlement money should be used to invest in infrastructure like roads and bridges, as well as water and sewer maintenance. This is a good policy because this is a one-shot revenue infusion that should not go for recurring state operating expenses.
Recently, Syracuse Mayor Stephanie Miner set forth a list of priorities she would like to tackle if Syracuse, like Buffalo, was able to obtain $1 billion from the state. She proposes much of the money to be used to upgrade Syracuse’s aging water and sewer system. I am sympathetic to her request (even though I would prefer that she advocate for a more regional approach). According to several reports, New York needs to upgrade its water and sewer systems. In fact, one report claims that to sufficiently upgrade our systems would cost $36.2 billion over the next 20 years. With the $5 billion surplus, it is not unrealistic to ask that a significant amount of that money be spent on infrastructure in Central New York.
William (Will) Barclay is the Republican representative of the 120th New York Assembly District, which encompasses most of Oswego County, including the cities of Oswego and Fulton, as well as the town of Lysander in Onondaga County and town of Ellisburg in Jefferson County. Contact him at barclaw@assembly.state.ny.us, or (315) 598-5185.
Dermody, Burke & Brown, CPAs, LLC
Dermody, Burke & Brown, CPAs, LLC, recently hired four new employees. Joshua Cook has joined as a tax associate in the Syracuse office. He was an intern in the tax department for three tax seasons before being hired on a full-time basis. Cook received his bachelor’s degree in accounting and his MBA from Le Moyne
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Dermody, Burke & Brown, CPAs, LLC, recently hired four new employees. Joshua Cook has joined as a tax associate in the Syracuse office. He was an intern in the tax department for three tax seasons before being hired on a full-time basis. Cook received his bachelor’s degree in accounting and his MBA from Le Moyne College. William Ryan, III joins the firm as a tax manager in the New Hartford office. He brings seven years of public accounting experience. Ryan is a CPA and received his bachelor’s degree in accounting from SUNY Plattsburgh. Alaina Schoonmaker has been hired as a tax/audit and accounting associate in the Auburn office. She received her bachelor’s degree in accounting and an MBA from SUNY Oswego. Tracy Marchant has joined as an audit and accounting associate in the Syracuse office. She has more than five years accounting and consulting experience. Marchant is a CPA and received her bachelor’s degree in business administration with an accounting concentration from the University at Buffalo.

Community Bank System, Inc. has promoted Denise M. Cavallo as branch manager for the Cicero office. She most recently served as a branch assistant at Community Bank and also worked in customer service. Cavallo holds an associate degree from Onondaga Community College.
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Community Bank System, Inc. has promoted Denise M. Cavallo as branch manager for the Cicero office. She most recently served as a branch assistant at Community Bank and also worked in customer service. Cavallo holds an associate degree from Onondaga Community College.

Mohawk Valley Community College has appointed William McDonald as the new director of community and workforce development in the Center for Corporate and Community Education. His professional history includes a nine-year stint at Herkimer College; he began working there in 2005 as an interim human-resources specialist, and a year later became assistant to the president.
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Mohawk Valley Community College has appointed William McDonald as the new director of community and workforce development in the Center for Corporate and Community Education. His professional history includes a nine-year stint at Herkimer College; he began working there in 2005 as an interim human-resources specialist, and a year later became assistant to the president. In 2007, McDonald was promoted to director of continuing education, a position he held for seven years. He is also a former president of Remsen Central School’s board of education. McDonald holds a bachelor’s degree in management with a concentration in human-resources management from Utica College. He is currently pursuing a master’s degree in education.
Brown & Brown Empire State has hired Diane Nichols as a marketing specialist for its employee-benefits team. She brings several years of customer service, office, and account management experience to the firm. Marilyn Kelley joins the employee-benefits team as an account manager. She previously worked in account management and sales and has five years experience
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Brown & Brown Empire State has hired Diane Nichols as a marketing specialist for its employee-benefits team. She brings several years of customer service, office, and account management experience to the firm. Marilyn Kelley joins the employee-benefits team as an account manager. She previously worked in account management and sales and has five years experience as a benefit advisor at Guardian Insurance. Elenore Arquette joined the Brown & Brown personal lines team as a producer. With her husband, John, Elenore Arquette is co-owner of John Arquette Properties, which they launched six years ago. Most recently, she worked at Ellis, Moreland & Ellis Insurance as a personal lines producer. Arquette holds a bachelor’s degree in psychology from the University of Rochester and a master’s degree in social work from the University of Washington. Rob Ransier and Michael Chapman also joined the personal lines team as producers. Ransier was previously employed as an itinerant special-education teacher for eight years. He holds a bachelor’s degree in psychology as well as a master’s degree in early childhood education. Chapman most recently worked as vice president of operations for the Greater Baldwinsville Ice Arena. He holds an associate degree in liberal arts from Onondaga Community College. David Lee and Mike Lane joined the Brown & Brown commercial lines team as producers. Lee entered the insurance industry in 2011 where he was a P&C Agent for the Paychex Insurance Agency and earned a Rookie of the Year award for 2013 and the #2 Top P&C Producer within the agency. He earned bachelor’s and master’s degrees in music from the Eastman School of Music in Rochester and specialized in classical flute performance. Lane has a background as a workers’-compensation claims adjuster. He earned a bachelor’s degree in history from SUNY Oswego and an MBA from Le Moyne College.

Julie Welch, commercial lines manager at Eastern Shore Associates Insurance (ESA), has been promoted to assistant vice president, commercial lines. Working from the Fulton office, she is a licensed insurance broker for ESA, holds the construction risk and insurance specialist certification and earned the professional insurance designation, chartered property casualty underwriter by the American Institute
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Julie Welch, commercial lines manager at Eastern Shore Associates Insurance (ESA), has been promoted to assistant vice president, commercial lines. Working from the Fulton office, she is a licensed insurance broker for ESA, holds the construction risk and insurance specialist certification and earned the professional insurance designation, chartered property casualty underwriter by the American Institute for CPCU in 2011. Welch has worked at ESA for 10 years and has more than 17 years in the insurance industry.

Unity House of Cayuga County, Inc., has hired Jean Petrosino Winne as director of the agency’s mental health program PROS (Personalized Recovery Oriented Services). She comes to the agency from Cayuga Counseling Services, where she worked since 2003. Winne is also in private practice as a clinical social worker. She holds a bachelor’s degree in
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Unity House of Cayuga County, Inc., has hired Jean Petrosino Winne as director of the agency’s mental health program PROS (Personalized Recovery Oriented Services). She comes to the agency from Cayuga Counseling Services, where she worked since 2003. Winne is also in private practice as a clinical social worker. She holds a bachelor’s degree in sociology from Ithaca College, and a master’s degree in social work from Columbia University’s School of Social Work.
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