Business Insurance Underwriters

Since 1988 we have been assisting Park Districts and Special Recreation Associations with their unique benefits requirements.  They must maintain a delicate balance between budget constraints and employee satisfaction.  On one side there is the need to demonstrate fiscal responsibility to the Park Board and taxpayers.  On the other it is imperative to offer a benefits package that will attract and retain quality employees.  Although salaries are rising they are still not on par with the private sector.  District’s have for years compensated for this by providing about average benefits programs.  Unfortunately, rising insurance rates, in many cases, are limiting the coverage that can reasonably be offered.

One of the ways we work to “Make Benefits Easy” is to work with you using the latest policies and funding methods to design a package to meet your goals.  Another way is to provide administrative support.  We act as that extra staff member you always need but can never afford.  Our duties include personally addressing employees questions and problems, plus designing, maintaining and hosting your benefits web site.  We stay abreast of legislative issues and keep you updated on those that relate to your District.  We also supply you with the latest COBRA management software free of charge.  Finally, we shop the market annually for the “best buy” in benefits and complete a detailed account of our research for the report to the Board.

What our clients say.....

“Frank J. Smith, Employee Benefits Specialist, and his office staff offered the absolute best customer service I have experienced in 30+ years in the park profession....”

Jim Randall, Frankfort Square Park District, 815-469-3524

“BIU works with us.....not just for us.  They really care about our needs.”

Sue Rini, Carol Stream Park District, 630-784-6194

“BIU makes my job easier by personally handling our employees benefits questions and claims problems.”

Don Miletic, Des Plaines Park District, 847-391-5700

“…Keeping up with insurance options and HR laws can be overwhelming…,  Business Insurance Underwriters helped me understand the various options best suited for our small agency.  The personal service they presented was key to my decision in selecting Business Insurance Underwriters.”

Lori Chesna, Southwest Special Recreation Assn., 708-389-9423

“BIU has provided the St. Charles Park District with outstanding service and counsel...”

William Conner, St. Charles Park District, 630-584-1055

“Frank and his staff have exceeded our expectations in almost every encounter.”

Debbie Kopas, Homewood Flossmoor Park District, 708-957-0300

“.....excellent customer service.....”

John Short, Buffalo Grove Park District, 847-850-2114

Benefit Design

 As the first step, it can be the most difficult.  Year after year you have been shown the same band aid plan designs from three or four brokers using the same three or four insurance companies.  They don’t solve your problem, they simply continue it under another brand name.  On the other hand, we use products in creative combinations and ways that restore your control and stop the bleeding of those annual rate increases.  Your employees, in many cases, will have the freedom to choose from several programs that can increase benefits or take home pay, whichever fits their personal needs, a freedom that’s normally only available with larger employers.

Annually, prior to your renewal, we shop your coverage so you don’t have to.  We are always looking for a better buy!  We do this for two very important reasons.  First, we want you to be aware of what is in the marketplace.  This will allow you to make an informed decision when the time comes.  Secondly, we use competitive quotes to negotiate with the incumbent carrier when they are calculating your renewal.  Very seldom are renewals “written in stone”.  As your representative, it is our job to assure that your renewal is at the lowest level acceptable to the underwriters.  Remember, our loyalty is to you, and not to any insurance company. 

Although our license and contracts allow us to represent any insurance carrier, we limit our recommendations to only those that meet our standards for products and customer service.  We confirm they are financially sound using ratings from A.M. Best, Moody’s or Standard and Poor.  We also use the annual complaint ratio report published by the Illinois Department of Insurance.  We exclude any carrier with a complaint ratio of 10% or higher from consideration. 

We design the plan that fits your needs, research the insurance carriers to underwrite that plan, then shop the marketplace for the “best buy”.  When you choose a plan and a carrier you can be sure we have done our homework and are willing to put our name behind them.

Financing

When is the last time you felt you were in control of your benefits cost?  Most employers have never experienced that feeling.

You offer employee benefits to attract and retain the quality people your organization needs to achieve success.  Unfortunately, every year you face premium increases that force hard decisions. 

• Absorb the increase and reduce profits.
• Pass it along to the employees and reduce their take home pay
• Reduce benefits

Rather than controlling the cost, it’s controlling you.

Depending on your organization’s specific needs, goals, and budget, we have a variety of financing designs to recommend.  There are the alphabet tax savings plans, FSA (Flexible Spending Accounts), HRA (Health Reimbursement Accounts), HSA (Health Savings Accounts), and POP (Premium Only Plans).  These can be used separately or in combinations.

Then there is defined contribution under IRC Section 105.  Defined contribution plans use the concepts developed by the pension industry in the 90’s.  They were responsible for the popularity and continued growth of 401K’s.  This concept allows the employer to set the current cost and future increases of their benefit packages giving them, in some cases for the first time, control.

Defined contribution requires two parts to be successful.  The first is the financial control we discussed.  The second is to offer employees a number of options to choose from, allowing each employee to pick the benefit or financial option that best fits their needs.  Honestly, it is impossible for an employer with more than one employee to select a benefits plan that meets the needs and desires of everyone.  Some employees want higher benefits, other want more freedom of choice and still others want higher take home pay.  Defined contribution puts the responsibility for selecting the proper coverage on the employee who is going to use it.

Communication + Education = Appreciation

It makes no difference how good your benefits package is if your employees don’t appreciate it.  By effectively communicating with your employees, we educate them on your benefits program so that they can understand and appreciate it. After all, next to payroll, employee benefits are a major budgetary expense.  Unfortunately, many employees fail to realize the value of what they have until after they leave employment and then it’s too late for both of you.  To prevent this we use an integrated three part process.

First, we prepare benefit individual summary statements easily understood by the majority of employees.  They illustrate the “hidden paycheck” your employees receive in benefits.  It includes everything from health insurance premiums to vacations days and pension contributions.  They  also can help level the playing field with private industry when you are in competition for qualified employees.

Second, we conduct employee meetings to discuss the benefit highlights outlined in the handout and to introduce our representative.  These meetings are meant to be very interactive with questions and answers throughout.  After the meeting, private sessions are recommended for any employee wishing to discuss their personal situations. 

In addition to the annual “renewal” meeting we are available at anytime throughout the year for group or individuals meetings.

Finally, we design, host, and continuously update a customized benefits web site for your organization.  It is meant to supplement, not replace, the personal service we are proud of.  It meets the needs and life style of your internet savvy employees.

The Hidden Paycheck

It's a fact! Most employees do not understand what their benefits are nor do they appreciate how much their employer is paying for them. Many employees will change employment simply because they think the pay and benefits package is better elsewhere.

Research reported in the journal Personnel Psychology suggests that employees only understand and appreciate between 31 and 68 percent of the cost or market value of the benefits they receive.

We are committed to helping you make sure that every benefit dollar spent is understood and appreciated.  When competing with other organizations it is imperative to emphasize the value of the excellent benefits you provide.

We use Fringe Facts® Communicator, a benefit communications program that produces personalized benefit statements for employees. Fringe Facts benefit statements show a summary of the employee's employer paid benefits. The costs to the employer for these benefits can be presented in an easy to understand table with supporting pie charts and benefit explanations.

When employees see the total value of their "Hidden Paycheck" it often leads to improved morale, reduced turnover, and increased productivity. When turnover is reduced, the costs to recruit, hire and train replacements are lower. That translates to greater profitability.

Fringe Facts Communicator is the perfect solution for small to mid-size District’s that want a powerful but easy to understand benefit statement.

There is no charge for this annual service to our clients.

Click on the Statement to See a Sample

Portfolio Statement                 Booklet Statement             Summary Statement

 

Your Benefits Website

Business Insurance Underwriters is now offering qualified Park District clients a customized web site entitled “Employee Benefits” at no cost.  This is a secure site for the use of your employees that includes:

• Summary Plan descriptions for each line of coverage, i.e. life, health, dental, etc.
• Answers to frequently asked questions for those coverages. 
• Links to the in force carriers which can provide on line provider network searches and in some cases commonly used administrative forms which can be downloaded.
• Links direct to the claims departments of many of the carriers we represent.  This allows personal tracking of individual claims.
• C.O.B.R.A. rights notification approved by the Department of Labor.
• Health and wellness resource site which includes 18 links such as the Mayo Clinic and the American Cancer Association.
• IMRF Link
• The ability to directly e-mail our agency with questions or for assistance.

You can further customize your site to include your employee handbook, messages from the Director or HR department or other employee benefits items.  To view a demonstration, go to our web site at www.BenefitsMadeEasy.com Click on “Employee Benefits”, then “Demo”.

Administrator Support

Benefit plan administrators are overworked and understaffed.  One reason is that the employee benefits package is only one of the many areas of responsibility they have.  We can’t add more hours to a day or hire them more staff, but we can and do take on part of their burden.  These are some of the duties we take responsibility for:

• Enroll new employees
• Educate employees on their benefits.
• Host, design, and keep current a customized benefit website.
• Answer employee questions.
• Follow up on claims and act as the employee advocate in resolving problems.
• Stay current with changes in government regulations and inform the administrator or those that directly affect them.
• Supply, free of charge, the latest COBRA administrative software and update it as needed.
• Supply, free of charge, a Section 125 Premium Only administrative kit, including instructional videos, that reduces both the employees and employers taxes.
• Shop for the “best buy” in the insurance market place every year before your renewal, then prepare a summary report with recommendations to help you make your decisions.

We free up time for the administrator to focus on what made your organization successful in the first place.

IMRF Disability Supplement

The disability coverage provided through IMRF gives basic protection to you and your employees.  There are several wekanesses in the benefit, however, that could cause financial hardship at the worst possible time for an employee. 

We worked directly with Reliance Standard Life to design a plan that fills those gaps and adds additional protection.  Because this is a group supplement to an inforce base plan, rates are greatly reduced and normally well within your budget limits.

Executive Benefits

Many executive directors have additional insurance benefits paid for by their Districts.  These normally include term life insurance and long term disability policies.  Of the two, the disability contract is by far the most important.  A 40 year old is four times more likely to become disabled than dying before age 60.  It is designed to fill the gaps and supplement the benefits of the IMRF package, if available.

Until recently the maximum benefit of these individual disability contracts was limited to between $2000 and $2500 per month for government employees.  We represent a A rated carrier that will give qualified government employees a $3500 per month benefits at a very competitive rates.

We also have 10, 15, and 20 year level term life policies plus the new "return of premium" contracts.  Those policies refund ALL of the premiums back to the District at the end of the term period, assuming the insured is alive.  This feature can be useful when negotiating the face amount of your protection.  This is a positive feature when determining benefits.