Tag Archives: Nursery School Insurance

Proper Insurance Claims Follow Up Procedures Yield Big Dividends for Schools & Non Profits

If you read our first article in the series “Managing Insurance Claims First Reports Can Have Big Impact  for Schools  & Non Profits” then you know that it’s a two part process, “be prepared” and “follow up.” This article shares the concept of how important proper claims follow up is for all workers compensation insurance claims, and all general liability insurance claims.

WHY WORKERS COMPENSATION CLAIMS & GENERAL LIABILITY INSURANCE CLAIMS ARE DIFFERENT:

Unlike many other types of insurance claims, many liability and workers compensation claims can get larger with time. In industry parlance this is called Loss Development as the claim develops over time it tends to get larger as law suits, negotiations, cost of continual medical e.t.c. increase the ultimate insurance carrier payout over time. A property claim for a burned structure does not deviate as much outside perhaps loss to the business income.

Thus we typically refer to both Workers Compensation Insurance & General Liability Insurance as very expensive credit lines that carry a high interest rate, comp especially. Although the carrier pays the loss upfront, the insurance marketplace is very efficient in re-couping the money from the policy holders in the form of premium increases for 4 to 5 years upon each renewal which is essentially a charge back.

THE IMPORTANCE OF DEVELOPING A CLAIMS FOLLOW UP PROCEDURE FOR YOUR SCHOOL OR NON PROFIT:

You wouldn’t hand a stranger your school’s checkbook, sign the blank checks and forget about it! That’s absurd, yet that is exactly what most Non Profit Organizations, Private Schools, and Charter Schools do. That stranger is the claims adjuster.

If you have a set procedure in place of when to follow up , with whom to follow up, and questions to ask you can and will have an outsized impact on the ultimate payout of a claim. In one example our claims staff followed up with a client and asked if there were any alternative duties at their facility their injured worker could perform instead of sitting at home and collecting workers compensation benefits. They assigned this injured workers a file scanning project that enabled the worker to come back, and be productive saving the School close to $67,000 in additional workers compensation costs. This only happened because someone was involved, asked the right questions, and had taken corrective action.

The bottom line is it’s critical that someone in organization have a set follow up procedure in place so they can monitor and effect not just the claim value, but the ultimate cost to your organization.

Download our Free Claims Report Tool for both Workers Compensation & General Liability Insurance. Take back your check book, control and manage your costs as it’s ultimately your hard earned dollars at stake NOT the insurance companies.

Important Trends In The Childcare & Nursery School Industry

If you are an executive director, or owner of a daycare/nursery school business it is important to be alert to important indicators within your industry. We found the following data through First Research, a provider of industry intelligence tools primarily to the private equity industry.

THESE ARE THE UNDERLYING NURSERY SCHOOL / DAYCARE TRENDS AS OF 2nd QUARTER 2011.

1. Demographics
The population of children in the target area for child care is anticipated to rise over the next 10 years. This will create a larger demand for child care services. It is predicted that the number of children under 5 will increase by 8 percent and the number of children between ages 5 and 13 will increase by 10 percent. ( Source: Bureau of Labor & Statistics )
2. Government Spending

Government spending has been increasing. Almost 35% of the child care industry revenue comes from government spending. ( Source: Bureau of Labor & Statistics )

3. Real Time Online Surveillance

Centers throughout the nation are now using online video to allow family members to watch their children from their computers. Parents are not able to hear what is happening but can see their children in real time. It is anticipated that more and more child care centers will implement this technology even though there are some privacy concerns. ( Source: Risk & Insurance Management Society)

4. Nannies Are Strong Competition

Nannies compete directly with child care centers. They typically work 40-60 hour weeks and make an average of $500 per week. They do not typically live on the premises. (Bureau of Labor & Statistics)

Consider Also The Following:
  • U.S Personal Income rose over 5% in March 2011 compared to the same month in 2010.
  • Employment at U.S child care facilities rose 1% in Feb. 2011 compared to the same period in 2010. This followed a 1.3% increase in January.
  • Overall U.S employment rose .7% in January and 1% in February.
  • Total revenue in the United States for child care services rose over 6% in the last quarter of 2010 compared to the same period in 2009.
  • The price of crude oil, which has an effect on the energy costs of child care facilities, rose 32% in the first week of May 2011 compared to the same week in 2010.

Employment (which is an indicator of demand) and revenue are rising. These are key indicators considering when more people are working that means more people need to send their kids to daycare which should  lead to increased demand for daycare & nursery school placement.

We hope you found this information helpful.  Of course none of this information is relevant if your facility suffers a loss that is not fully covered by your nursery school Insurance child care insurance and day care insurance . Contact Risk Advisor jhague@metriskadvisory.com or visit our website at  Metropolitan Risk Advisory for a free coverage analysis. Chances are this review is years over due.

Highest Paying States For Executives Directors of Nursery School & Day Care Facilities

Congratulations if you have the foresight of living and working in New York and are an Executive Director or Administrator of Child Care Services that plan, direct, or coordinate the academic and non academic activities of preschool and childcare centers or programs. This job title does not include nursery school or preschool teachers. Of course if you think this is valuable information, contact a risk advisor to find out which insurance carriers offer the most coverage for the lowest rates. We would love to share that with you too!

Top Paying States For This Occupation: 

( Source: Bureau of Labor & Statistics – As of May 2010 Data) 

State Employment(1) Employment per thousand jobs Location quotient (9) Hourly mean wage Annual mean wage (2)
New York 3,910 0.47 1.18 $32.41 $67,400
District of Columbia 380 0.59 1.48 $29.41 $61,160
Massachusetts 1,940 0.62 1.56 $27.93 $58,090
Illinois 2,520 0.46 1.14 $27.49 $57,190
Rhode Island 150 0.33 0.82 $27.19 $56,550

Top Paying Metropolitan Areas For This Occupation: 

( Source: Bureau of Labor & Statistics – As of May 2010 Data) 

Metropolitan area Employment(1) Employment per thousand jobs Location quotient (9) Hourly mean wage Annual mean wage (2)
Flint, MI 100 0.83 2.07 $41.49 $86,300
Tampa-St. Petersburg-Clearwater, FL 40 0.04 0.09 $40.83 $84,920
Vineland-Millville-Bridgeton, NJ 40 0.60 1.51 $36.08 $75,040
Lowell-Billerica-Chelmsford, MA-NH NECTA Division 100 0.85 2.12 $35.84 $74,540
West Palm Beach-Boca Raton-Boynton Beach, FL Metropolitan Division 50 0.10 0.24 $35.61 $74,070
Visalia-Porterville, CA 30 0.26 0.65 $34.95 $72,690
New York-White Plains-Wayne, NY-NJ Metropolitan Division 2,650 0.53 1.33 $34.95 $72,690
Brockton-Bridgewater-Easton, MA NECTA Division 60 0.66 1.65 $34.79 $72,370
San Francisco-San Mateo-Redwood City, CA Metropolitan Division 480 0.50 1.26 $34.40 $71,560
Nassau-Suffolk, NY Metropolitan Division 510 0.43 1.07 $33.39 $69,450

Non-Metropolitan Areas With The Highest Employment In This Occupation: 

( Source: Bureau of Labor & Statistics – As of May 2010 Data) 

Nonmetropolitan area Employment(1) Employment per thousand jobs Location quotient (9) Hourly mean wage Annual mean wage (2)
Northeastern North Carolina nonmetropolitan area 270 1.53 3.83 $24.43 $50,820
Western Central North Carolina nonmetropolitan area 160 0.65 1.64 $20.09 $41,780
Other North Carolina nonmetropolitan area 150 0.51 1.28 $20.11 $41,830
Northwest Mississippi nonmetropolitan area 130 1.26 3.17 $32.15 $66,880
North Coast Region of California nonmetropolitan area 110 1.14 2.86 $20.36 $42,360

How Nursery Schools & Non Profits Are Saving Money, Increasing Productivity With Google Apps

Let me first state clearly and emphatically I have no horse in this race. I am approaching this topic purely from a philanthropic, and business acumen standpoint only. Now that the housekeeping is done let me share with you the main point of this article and it’s not necessarily that I love Google, (I do); the point is there are so many new tools on the market that can help a small nursery school, struggling non profit, or a multitude of small businesses grow, become hyper efficient, raise funds, track donors, communicate and collaborate with constituents, parents, donors, board members, whoever, FOR LITTLE TO NO COST!

Let me also state we practice what we preach as we use Google Tools all throughout our organization as well as products from 37 Signals which is also a fabulous resource for most small businesses. For those keeping score at home this is the third company I have had the pleasure building. My last one I helped grow to $50 mill a year in sales before I wanted to embark on a different set of challenges. In that prior company we had the following cost we incurred while maintaining a technology infrastructure that supported 35 employees.

 Old School Infrastructure:

Microsoft Exchange Server – 500 Gigs $10,000

Software License for Exchange – $ 5,000

Maintenance of Exchange Server – $ 3,500 a year

In- House WIKI ( Company Knowledge Base housed on internal servers using VM Ware) – $3,000

Company File Server $ 5,000

Tech To Maintain Whole System: $ 15,000

Please note I am leaving a lot out here as the list would be really long, like all of the Microsoft software licenses we had to buy, install and maintain. Down time dealing with viruses, spam, e.t.c. , as well as the limitation of having most of the data not be collaborative. 

 New  School Infrastructure :
Google Apps is a zero cost full suite of applications that lets students, faculty, and parents work together more effectively. No cost and no hardware mean money saved for more important things like books and fundraising. Schools that implement Google Apps can save up to 90% on their IT costs. In addition to lower costs, below are 7 reasons why Google Apps rocks:

  1. Google Docs – The word processing application gives students the chance to work on the same document at the same time from anywhere in the world. No more USB keys! Docs also includes spreadsheets, presentations, drawings, and more.
  2. Gmail – An elite email service for free
  3. Calendar – The class calendar can be accessed from anywhere at anytime.
  4. Google Sites: Which let you build Internal Wikis / Sites for Fundraising / Information Sites to communicate with Boards, Donors, Parents
  5. Security and Privacy– Google takes these very seriously
  6. Easy to use – Almost no installation
  7. Students Love It – Gmail and Google Docs make learning fun for students. Check out this video to see why.
  8. Help Resources – Check out the Google Apps for Education community group .
Old School Infrastructure Cost : $41,500 ++ ( many of the costs reoccurring)  / New School Infrastructure Costs: $ 0
When we had to make technology choices starting the new company the first cost we saved tremendously on was email. By migrating to Google Apps Professional edition we could maintain my websites URL within my email domain instead of using gmail. Our  preference was to have our web site URL not  “gmail” attached to the end of our emails as GMAIL does not give the professional image we want for the business. Thus we use the professional edition which costs a whopping $50 per user!
To be fair, Steve Ballmer and crew still exact their pound of flesh from us as we still use Microsoft Products & Apple Products, however this is by choice not by necessity. A non profit or small nursery school that sweats out computer repairs, software license e.t.c. can do away with all of this. Further by bringing everything to the cloud you no longer have to maintain any of it. You get to focus on your business and not fight with technology. That was the biggest advantage for us.
Further our employees can easily work from home or remote sites without hiring a tech to build a VPN (Virtual Private Network).
If you have a legacy system  and data you need to deal with we recommend  hiring a tech to help you migrate all of your data and do the set ups with Google, especially if you will go with the Pro Edition. If you are a new Non Profit, Nursery School, or small business and starting essentially from scratch this is the perfect platform to begin your new venture. Your internal cost structure will ultimately be a fraction of your competitors which is ultimately a key driver of your success.
We will in subsequent articles feature and profile new tools to help you achieve your goals at a fraction of the cost. Why do you ask would I do this as we are “insurance people”? Excellent question grasshopper! Our goal as an organization is to help our clients efficiently and most cost effectively deploy their resources so they can compete better in their native markets. Assessing, managing risk, buying insurance at the lowest  cost point possible  are all consistent with the company objective at Metropolitan Risk Advisory.

Whether you are a day care, a nursery school, or even a college, using a tool like Google Apps can save you money and improve your efficiency. Here at Metropolitan Risk Advisory we practice what we preach as we use Google Apps to run our business. We hope you found this article useful. If you found this valuable please leave a comment to inspire us to keeping writing and sharing. On behalf of the staff at Metropolitan Risk Advisory, thank you for putting others first!

The Results of a 25 Year Study on Early Childhood Education

There was a study conducted over 25 YEARS (yes years) about the benefits of early childhood education programs. The study was published on June 9th, 2011 by Arthur Reynolds (professor of child development) and Judy Temple (professor at the University of Minnesota). The study ended up with overwhelmingly positive results for early childhood programs.  It followed more than 1400 participants, mostly African American. Some of the results for those who participated in these programs are summarized below.

  • 28% fewer were incarcerated or jailed
  • 9% more completed high school; 19% more males
  • 20% more achieved at least a moderate level of socioeconomic status
  • 22% fewer had a felony arrest while the difference was 45% for children of high school dropouts
  • 28% fewer abused drugs and alcohol
  • 19% more carried a level of health insurance coverage

One of the biggest shocks was finding that children who participated in the CPCEP graduated high school on time 55% more than those who did not participate in the program. Lastly, according to this study, the cost benefit analysis of early education resulted in an 18% annual return on investment for society.

What do we take away from this study? That early childhood education is a great investment for society and that not enough money is ending up in these programs. In fact, Only 3% of the $14 billion dollars allocated to school districts under “No Child Left Behind” goes to preschool. That number seems drastically low for a system with such great benefits to society.

For more check out the study in “Science” or the  article from the New York Times which was the original source for this piece. If you represent an early childhood education program we appreciate your hard work which is why we make it a priority to protect your efforts. At Metropolitan Risk Advisory we specialize in childcare insurance, day care insurance, nursery school insurance, and non profit insurance in the greater NYC area. Our risk management techniques will protect your children and facility resulting in lower costs which can then be re-deployed on more important things, like  teachers & children not insurance premiums!

Quick Tips On How To Compete In The Nursery School Day Care Space

Commercial day care centers & nursery schools often face difficulties due to the competition from non profit day cares such as churches and after school programs.  Their cost structures are better because they can subsidize tuition and enrichment programs through donations from their congregation, grant writing, federal & state subsidies. If you are a Non Profit Nursery School, or Child Day Care Facility, understand that your local competition who cannot subsidize their tuition will try to position their facility through the use of enrichment programs to compete on child experience rather than tuition costs.

To better compete, think about implementing some of the following enrichment programs that can give your school or facilities a value edge :

Education Testing
Foreign Language Classes
Tutoring
Martial Arts
Theatre Programs
Gyms (Indoor)
Dance Programs

Parent Lecture Series

Supervised Playgrounds

These are just some amenities that will make your program more appealing against your local competition. If you can’t compete on cost, position your program as a well rounded “educational experience” which has more of an emotional pull to parents than cost might.

You can further lower your cost structure and give your facility a competitive edge by implementing risk management techniques which substantially lower your insurance costs , often far less than your peers who don’t have risk management for nursery schools or risk management for day care facilities in place. For more advice contact an advisor today at Metropolitan Risk Advisory. We specialize in the needs of child care and day care facilities. We can also help increase your profit margins with day care insurance and targeted risk management techniques.