Tuesday, July 31, 2018

Key Employee Indemnification Insurance Policies, Explained

Companies around the world insure their assets with business insurance. This is designed to protect from financial losses arising from property and equipment damage or destruction, such as in the case of certain natural disasters. Protecting key employees, however, is a commonly-overlooked area for many firms. Most people know that successful businesses are made up of more than just buildings and equipment, and the employees are a major contributor to the success or failure of a given business operation. In fact, it can be argued that employees are among a company’s most valuable assets.

To fill the gap, protecting both the company’s physical assets and its most valuable employees, key employee indemnification insurance policies are a great solution. In this two-part article series, we will investigate what may happen to a company if critical personnel should die, and the solution for protecting against financial losses associated with that death.

When Key Employees are Lost

Businesses are comprised of far more than physical assets like buildings, equipment, product inventory, and vehicles. Employees form the core of any business operation. As some of the most valuable assets a company can have, certain employees with extensive experience or unique talents tend to stand out. These are called “key employees”, and such employees can account for much of the success a business enjoys. Key employees include managers, department leaders, and directors, but are not limited to these categories. Such employees may be:

  • Department heads
  • IT specialists
  • Sales directors
  • Company directors
  • Employees with years of experience, but no leadership role
  • Forward-facing employees, such as customer service specialists or client care managers

What happens when key employees were to die unexpectedly? First, profits may suffer. Businesses may also have to face significant expenses in recruiting and training suitable replacements for the lost employee(s). There both tangible and intangible losses a company may experience, including:

  • Disruption of Management/Leadership – if the key employee was responsible for much/all of managerial efforts, his or her loss can create confusion and inefficiency among the remaining employees.
  • Loss/Reduction of Earnings – many companies can attribute their successes to a few select people; those people that are responsible for the bulk of sales and receipts. When one or more of these key players are lost unexpectedly, earnings may decline as a result.
  • Credit Problems – some companies, especially small operations with only a few critical employees, may experience credit problems when creditors react to their loss.
  • Erosion of Confidence – when a key employee is lost, other employees may react negatively. So too may suppliers, vendors, and customers, each who has depended on strong relationships with the key personnel.
  • Replacement Costs – some of the significant expenses in the loss of a key employee are recruiting, hiring, and training a suitable replacement.

When a valued employee central to the operation is lost, it is clear that companies may face significant hurdles, both financially as well as in relationships with other employees or business partners. It is also clear that a logical move would be for a company to protect itself against these losses. How can companies protect themselves and their financial interests?

Key Employee Indemnification Insurance

A potential solution for protecting against the tangible financial losses of an unexpected death of critical employees is that of life insurance, specifically key employee indemnification insurance. In simple terms, this is an insurance policy purchased by a business to compensate that business for financial losses that would arise from the death or long-term disability of important company employees. This type of insurance is sometimes referred to as key man or key person insurance.

A key employee indemnification policy is typically a life insurance policy purchased on any employee who is considered a critical part of the business operation. Proceeds from such a policy can be used for a number of purposes, including:

  • Costs associated with recruiting, hiring, and training replacement personnel.
  • Replacement of lost profits.
  • Indemnifying the business for the permanent loss of an employee’s experience, skills, and business relationships.
  • Funding financial reserves for the company during the adjustment period associated with the loss of a key employee.
  • Paying of benefits to the lost employee’s surviving family members.
  • Funding the purchase of a deceased shareholder’s or employee’s ownership in the business.

There are many advantages in having these policies on critical employees. When a key employee dies unexpectedly or becomes permanently disabled and can no longer fulfill his or her duties, insurance proceeds work to maintain business continuity and to offset any potential financial hurdles the company may experience.


We’ve learned what key employee indemnification insurance is and how it can protect a company from financial loss when a critical employee dies or becomes permanently disabled. We’ve also talked about how the proceeds may be used for a wide range of purposes. In our next article in this two-part series, we will go over the components of key employee indemnification policies and how they work, including tax implications. Finally, we will provide a summary of the benefits these financial protection solutions provide to companies that rely on their most valued employees.

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Thursday, May 17, 2018

California Blossoms into Legalization with Cannabis Cultivation Conference

The commercial cannabis industry is growing by leaps and bounds, not only in the United States but in Canada. Legalization efforts have resulted in 29 states and the District of Columbia to pass medical cannabis legislation; an additional nine states and D.C. have also made recreational marijuana legal. In Canada, legislation to legalize recreational cannabis is moving to a final vote in June 2018; Canadian citizens already have access to legal medical cannabis.
With the fast-growing industry and new opportunities in markets throughout North America, conferences have been organized to help commercial operators thrive. One of the most important cannabis conferences in recent months was the Cannabis 2018 Cultivation Conference, held March 13, 2018 in Oakland, California. Here, leading figures in the burgeoning industry shared their thoughts and insights into the commercial marijuana industry with event attendees.
Considerations in Large-Scale Cultivation
Large-scale grow operations have sprouted in communities throughout North America, particularly in western states where legalization efforts have taken hold. Some of the key considerations in large-scale marijuana cultivation operations including the concept of automating processes to help increase yields, quality, and consistency from harvest to harvest. Today’s marijuana consumers demand outstanding quality, and by adding automated systems to the grow operation, those consumers’ needs and desires can be met time and again. Examples of automation include plant feeding and irrigation systems and light delivery timing systems. These automated systems eliminate guesswork, providing plants with the optimal growing conditions and improving process efficiency across the board.
Cleanliness is also an important part of the large-scale cultivation process. At many grow facilities, employees have clothing and personal protection equipment (PPE) that remains within the facility, helping to eliminate cross-contamination from insects and fungi. Keeping the grow area clean and free of debris can also cut the chances of a pathogen outbreak; the most successful grow operations have detailed cleanliness protocols to prevent the loss of crops.
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Finally, many successful cultivators know that evolution is a natural part of industrial growth. As the markets shift from state to state and across the country, being able to change to meet consumer demands is of great importance. A flexible business model is crucial, as is understanding that regulatory considerations may evolve along with the business itself. Regulatory compliance is not a fixed target; as regulators gain more understanding of the cannabis industry, they are adding changes to the regulatory standards and practices that cultivators must follow to ensure compliance.
Tips for Success in Breeding
Several keynote speakers at the Cannabis 2018 Cultivation Conference shared their insights into cannabis breeding, especially how breeding efforts affect large-scale commercial operations. The most critical takeaway from breeding presentations at the conference is that commercial cultivators should focus on breeding and growing plant varieties that are popular with consumers. According to one commercial operator, the cannabis strain known as “Blue Dream” has dominated the commercial market. This particular strain is easy to grow, naturally pest-resistant, and can be found in dispensaries across the country. Attention to so-called “landraces”, or time-honored cannabis strains that are suited to regional environmental conditions, is another tactic that successful growers are implementing. As with any industry, learning consumer preferences can unlock new opportunities. Regional preferences may dictate the cultivation of specific marijuana strains, and here flexibility is important. Being able to bring popular cannabis varieties to market in a timely manner can spell the difference between profitability and lost opportunities.
Research into new cannabis breeds has been done without the support of the scientific community as hobbyist growers have made the transition to commercial-scale operations. Once botanists and other members of the sciences get on board with their knowledge, new strains can be developed to meet emerging consumer demands. The cannabis genome has recently been mapped, and this scientific knowledge can unlock stronger genetic profiles for cannabis varieties available to marijuana users.
Cultivators doing their own breeding operations should focus on which traits are desirable in a given strain. Developing strains that are pest-resistant can reduce crop losses, and tailoring specific strains for THC and/or CBD content can provide consumers with the varieties that meet their needs. Remembering the end user in commercial growing and breeding operations is important – growers should know their target audience and their preferences before embarking on expensive breeding operations.
Tips from Successful Cultivators
There was a huge amount of information sharing at the Cannabis 2018 Cultivation Conference. Conference attendees were exposed to the insights of dozens of major industry players. In addition to cultivation and breeding best practices, attendees were also able to learn several tricks of the trade that they could bring to their own operations. The end result is a stronger, more flexible, and more knowledgeable cannabis industry.
Collecting pollen in special pollen bags has been employed by innovative commercial growing operations. Isolating pollens from different strains can prevent undesirable cross-breeding. Some growers will protect certain branches of their plants with plastic to help protect specific breeding operations. Freezing or storing pollen for later use is another practice that ensures the success of future generations of cultivation.
The cannabis genome has experienced a narrowing over the past two decades. This is due in no small part to the practice of “clone only” hybrids and sterile cannabis strains, both of which are used in many commercial-scale growing operations. The same male breeding genetics have been used for many generations of cannabis culture, and this has reduced the diversity within the genetic profiles of plants. Smart cultivators are refocusing their efforts on landraces, incorporating the hardy growth and pest resistance into new breeds, and many growers are collecting and sowing seeds from many different cultivars to enhance genetic diversity. Tissue culture, an advanced method used in many other commercial farming applications, has also been adopted by the marijuana industry. This can preserve desirable genetics for future generations. With these tips and industry insights, commercial growers have many tools at their disposal. The industry can become stronger and more stable with the information-sharing practices exhibited at the Cannabis 2018 Cultivation Conference and similar gatherings around the world.


Thursday, March 15, 2018

Area Rids 1000s Of Previous Records for Weed Citations

Over recent 50 years, 1000s of San Franciscans were jailed for low-level cannabis criminal activities. These people will have their rap sheets picked up in a brand new program from Area Lawyer, George Gascon.

California's widely known Suggestion 64 not only approves cannabis for clinical and also entertainment use, yet that also allows people to relate to having any past cannabis-related criminal offenses expunged from their documents. San Francisco is automating the process.

Gascon introduced Wednesday that his workplace would push aside and seal over 3,000 offense marijuana convictions dating right back to 1975. He likewise revealed that his workplace would review the almost 5,000 marijuana legal judgment of beliefs. The DA's office will undoubtedly establish whether or even not these sentences should be lessened to violations or resentenced.

Taking out Obstacles

The Medication Policy Collaboration determined that over one thousand California locals are eligible to declare an improvement to their files. Below 5,000 Californians have filed to possess their suits cleared away. In San Francisco, the variety is incredible low 23 people who have contended their sentence situations.

Proposition 64 allows any Californian with a previous judgment of conviction from small cannabis criminal activities the possibility to put on have their view of convictions entirely cleared away coming from their documents or even reduced.

Regarding offense situations, Gascon mentioned that those situations would indeed be rejected promptly. However, it will require time for any legal cases to become refined. Rev. Amos Brown, president from San Francisco's NAACP phase, feels that this is a gigantic intervene specifying dark individuals complimentary if you want to reside in the community, acquire as well as maintain jobs, have learned, as well as medical.

Cannabis legislations have long been presumed to possess an irregular administration against minorities and also low-income areas. The American Civil Liberties Union conducted a research study in 2013 that discovered African United States citizens were much more than two times as very likely to have an arrest as well as the judgment of conviction for cannabis ownership as whites. Both groups possess identical cannabis use fees. This divide is a lot more evident in San Francisco with people of color encountering legal implications four opportunities much more than white colored folks. In an endorsement to this difference, Gascon said, "Our company knows there were tremendous breakdowns in the Battle on Medicines, and also our experts criminalized large sections from our neighborhood. The African American, as well as Latino neighborhoods, were the absolute most hurt by this."

San Francisco acknowledges that making an application for termination or resentencing could be pricey. Additionally, anyone along with a sentence on their criminal document could be blocked out coming from employment, pupil car loans, voting, as well as casing.

A lot of people who have cannabis convictions are low-income individuals. Considering that the process of obtaining resentencing or even termination involves employing the help from a lawyer, which can vary off $500 to $1500, the procedure has succeeded from grabbing a lot of these low-income individuals.

Saturday, January 6, 2018

How a Reverse Mortgage Can Help Your Retirement Cash Flow

Many different retirees have uncovered this with rising cost of living and ascending medical management payments, their allotted earnings for retirement is just not meeting their desires.

Some retirees have resorted to reverse mortgages to bolster their retirement life cash flow.

Of late, what is a Reverse Mortgage?

A reverse home loan is a loan taken out on a home or apartment which empowers the household and spouse to continue being in the home up till both either move or pass away. Reverse property loan proceeds can be collected in 3 different approaches:

As a singular sum payment

As routine monthly salary

At times and volumes determined by the homeowner

Reverse property loans are pretty adjustable for investment circulation. However, it should be kept in mind this, like any form of a home loan, there are usually several costs, finalizing expenditures, together with expenses that accompany a reverse property loan. It has to be taken note which, as with just about any classification of residential property finance, there are specified charges, closing expenditures, and costs which accompany a reverse mortgage loan. For that reason, if a certain person figures out that they will likely be leaving the home in the upcoming month, it can be advisable to locate additional ways to substitute their distinct source of income spaces.

Different Types of Reverse Home Loans

However, when a person concludes which a reverse mortgage loan is ideal for their distinct circumstances, they must opt what kind of reverse home loan they will certainly acquire: a public-sector home mortgage or private sector home mortgage.|If an individual chooses which a reverse property loan is just right for their specific condition, they must determine what form of reverse home loan they will purchase: a public-sector home mortgage or private sector mortgage loan. Because each one of these sorts of reverse loans has varied fundamentals and conditions, it is vital to recognize the distinctions.

Public Reverse Mortgages

There is a pair of various kinds of public sector reverse property loans:

Credit Loans (DPLs) provide a sole round figure settlement used to repair a property. DPLs are attainable through community and state govt organizations.

Personal Property Tax Deferment Finances (PTD provide an once-a-year finance down payment which is utilized to pay out land tax.

Private Sector Reverse Home Mortgages

There certainly are additionally two different kinds of private sector reverse loans:

Home Or Apartment Capital Alteration Loans (HEMs) are federally protected loans backed by the fed government and given by a lender that is authorized by the Federal Housing.

Exclusive Reverse Property loans are accessible through private companies this allows the lending institution title liberties to the loan.

Private ownership reverse mortgages can be employed every way this the borrower pleases and don't fall below government and state guidelines.

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