Water Damage -The leading cause of loss across all commercial structures
November 24, 2021
In June of 2021 the Champlain Towers South, a 12 story, 136 unit condominium complex near Miami collapsed in the middle of the night crushing sleeping residents, killing nearly 100 people in the building and making hundreds more homeless. The investigation into the cause of the collapse was suspected early on and the resounding engineering opinion was of a structural failure due to prolonged and persistent water leaks and years of exposure to corrosive salt to the concrete beams and slabs. The water damage had been noted as early as 1996 when engineering consultants warned the building owners that there was alarming evidence of major structural damage to the concrete slab below the pool deck, and the abundant cracking and crumbling of the columns, beams and walls of the parking garage under the building. Right before the building collapsed a cascade of water in the parking garage was filmed by a passerby.
The price tag of this tragedy to insurers includes claims of property damage, physical damage to the building itself as well as liability from several lawsuits being filed by residents of the condo. The $30,000,000 property policy and the $18,000,000 liability policy will not be adequate to satisfy all parties in this horrible tragedy begging the question, how much insurance is enough?
Although this may seem like an extreme example to use in an insurance scenario, there is good reason to worry. Water intrusion and liquid damage are among the leading causes of loss across all commercial structures, more so than fire, theft, vandalism, and all other insurable perils. According to one major insurance carrier, the leading cause of loss or claims by water damage is accidental discharge. More than half of the claims seen by the carrier were due to general discharge accidents. This may be from a washing machine, hot water heater, a refrigerator, or a dishwasher. The occupancies that tend to have this higher exposure are places such as hotels, condominiums, or other residential buildings with a large number of sinks, toilets, laundry facilities, hot water tanks and HVAC equipment. Other causes of loss by water damage include pipe freezes, sewer and drain backups and sprinkler leakage.
Prevention and action are key to avoiding water intrusion and ensuing liquid damage. Water leaks can go undetected for significant periods of time and can cause damage not visible on the outside. Once released into the building water can cause major issues to physical structures, contents, equipment, and financial loss due to lost rents, unforeseen repairs and even damage to the building owner’s reputation. A practical solution for preventing and reducing loss is to understand the exposure, take proactive measures to avoid the damage and be fully prepared to act in the event of water intrusion to help to drastically reduce the size and number of water damage losses. That means you need a water damage prevention plan that is routinely updated and executed when the need arises.
A good water damage plan is specific to the buildings’ characteristics including size, age, height location and any other unique characteristics such as landscaping or the shape and slope of roofs and eaves.
Here’s how to get started
Conduct a water intrusion vulnerability risk assessment. The three main areas of vulnerability for water intrusion in almost every building are:
1. The building envelope
Includes the roof, walls and floors. You should be checking the siding, foundation, windows, doors, vents, roof eaves, gutters and downspouts for vulnerabilities or poor design
2. Interiors Systems
Piping for interior water, fire sprinklers, wet areas such as bathrooms and laundry rooms, unheated attics, basements, crawlspaces as well as building mechanicals such as the A/C, hot water heater and all appliances.
3. Exterior Exposures
Sloping ground and landscaping, groundwater, irrigation and septic systems.
The Plan
- Develop a log to track any history of leaks and damage
- Document all potential sources of water intrusion and entry points
- Maintain good housekeeping practices such as maintaining heat in all areas with plumbing and insulating pipes
- Conduct regular inspections of equipment and appliances, and provide all appropriate maintenance
- Create detailed plans or schematics of liquid piping systems and include the location of all shut off valves
- Establish a valve shut off protocol and update key personnel regularly
- Have a cleanup plan in place with the necessary supplies to minimize damage
- Conduct an annual vulnerability assessment
- Have trusted repair and remediation
Be prepared with a cleanup strategy
- Create a plan of activation of personnel and notification procedures
- Establish staging areas where teams can meet and organize
- Begin water mitigation activities
o Remove vulnerable materials
o Remove or protect stocks and goods
o Remove or protect critical equipment
o Begin water removal and clean up
Create a water intrusion response kit
- Flashlights and emergency lanterns
- Plastic buckets with wet and dry mops
- Wet and dry vacuums
- Hoses with any required adaptors
- Squeegees
- Pipe wrench
- Electrical extension cords
Water damage losses are not always covered under all insurance policies and there are limitations in all policies that do offer coverage for water damage limiting the types of causes and losses that are covered. Furthermore, most policies contain an exclusion for water damage that is defined as a flood. A flood policy must be in place to provide coverage for surface water coming in from the outside and meeting the definition of a flood. Call SimcoHR for more information and ask how you can provide your building with protection from this liquid nuisance.
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May is Mental Health Awareness Month , and it's a great time to reflect on the mental well-being of your team. As awareness about the importance of mental health continues to grow, many employers are seeking ways to support their employees. It’s crucial to recognize that mental health plays a significant role in an employee's overall performance, job satisfaction, and well-being. In the U.S., 76% of workers report experiencing at least one symptom of a mental health condition, and 81% say they’ll seek workplaces that prioritize mental health, according to the World Health Organization (WHO). Despite these numbers, many workers are hesitant to discuss mental health struggles, particularly when it comes to the workplace. As employers, it’s important to foster an environment where employees feel supported and understood. Here are some impactful ways to support mental health in your workplace, including a few creative strategies you may not have considered: Encourage Regular Mental Health Breaks and Downtime Everyone needs a moment to breathe, and it's important that employees feel they can step back when necessary to recharge. This might mean taking a short break or an afternoon off to reset mentally. Allowing employees to work at a more manageable pace when needed can help prevent burnout and chronic stress. When employees feel supported in prioritizing their mental health, they’re more likely to remain productive, engaged, and loyal over time. You can also encourage employees to take "mental health breaks" throughout the workday. These breaks can be as simple as setting reminders for short pauses to breathe, stretch, or step outside for a brief walk. These moments help employees clear their minds, reduce stress, and return to work more focused. It’s important to create a culture where taking breaks isn’t only accepted but encouraged, especially during stressful periods. By prioritizing both scheduled downtime and spontaneous breaks, you’ll help your employees maintain their mental well-being, leading to a more balanced and productive work environment. Offer Paid Time Off, Mental Health Benefits, and Flexible Schedules Offering paid time off and mental health benefits is not just about reducing financial barriers for employees—it’s about making mental health care more accessible. In many cases, employees may delay seeking help simply because they can’t afford to lose work hours or pay. Flexible schedules can also enable employees to attend therapy or make time for other mental health treatments that help them stay well. When employees know they have access to these resources, they’re more likely to seek help proactively rather than suffering in silence. This not only aids in their overall well-being but can prevent bigger issues from arising down the road, benefiting both the employee and the business. Provide an Employee Assistance Program (EAP) An Employee Assistance Program (EAP) provides employees with confidential access to professional resources for a variety of personal and mental health challenges. The beauty of EAPs is that they offer employees expert help without the stigma of speaking out at work. Offering an EAP ensures that employees can reach out for assistance on issues like stress, anxiety, addiction, or personal relationships—without fear of judgment or consequences. At Simco, we provide an EAP through our HR advisory component to businesses, giving employees a safe space to get the support they need, which ultimately leads to better employee engagement and a healthier workforce. Make Reasonable Accommodations When an employee requests accommodations for a mental health condition, it’s important to handle the situation with care and understanding. Engaging in an open and respectful conversation to explore how you can adjust the work environment, expectations, or hours shows empathy and commitment to their well-being. For example, an employee struggling with anxiety may request flexible hours to avoid rush hour, or someone with depression may benefit from a quieter, more isolated workspace. By providing reasonable accommodations, you not only comply with the law but also create an inclusive environment where everyone can thrive regardless of their mental health challenges. Create Digital Spaces for Friendships to Grow Loneliness, especially in remote or hybrid work environments, can exacerbate feelings of isolation and stress. While it’s easy to assume that working from home or in digital spaces means less connection, the opposite is often true. Employees can feel more isolated and disconnected than ever. One effective way to mitigate this is by creating virtual spaces dedicated to casual, non-work-related conversations. Encouraging employees to use virtual platforms for socializing or setting up fun, interactive events like digital coffee breaks or team trivia games can create a sense of camaraderie. In a remote setting, human connection doesn’t have to be lost—it can be enhanced by making it a priority through digital spaces. Promote Good Mental (and Physical) Health Supporting employees’ mental health means supporting their overall well-being. You can encourage mental health by promoting healthy habits such as mindfulness, yoga, or even simply taking a walk during breaks. These activities not only relieve stress but can also increase focus and energy levels. Employers can organize weekly wellness programs, invite yoga instructors, or even provide access to apps that promote mental well-being. When employees see that their workplace is invested in their physical and mental health, they’re more likely to reciprocate with increased engagement, satisfaction, and productivity. Normalize Conversations About Mental Health Creating a culture where employees feel safe to speak openly about mental health is crucial. It’s not just about providing resources; it’s about creating an environment where it’s okay to ask for help. Encourage managers and leaders to lead by example—when leaders are transparent about their own mental health or well-being, it opens the door for others to do the same. This can be achieved through regular conversations, check-ins, and creating a space where mental health is normalized as part of a healthy workplace culture. Reducing the stigma around mental health ensures that employees don’t fear discrimination or judgment when discussing their struggles. Leverage Additional Resources There’s a wealth of resources available to businesses and employees. The U.S. Substance Abuse and Mental Health Services Administration provides virtual recovery resources, while the U.S. Surgeon General’s framework for workplace mental health offers actionable guidelines to improve mental well-being in the workplace. Beyond government resources, partnering with mental health organizations or consulting with benefits brokers can help you enhance your offerings. At Simco, we support businesses with expert advisory services to help design employee benefits packages that prioritize mental health support, ensuring that employees have access to the right care at the right time. Support Remote Employees by Encouraging Time Outside the Home Remote work can offer flexibility, but it can also lead to feelings of isolation, especially for employees who lack social interaction with coworkers and spend long hours in the same environment. One way to combat this is by encouraging employees to occasionally work outside of their homes, whether at a local café, co-working space, or a public library. Changing the scenery not only helps break up the monotony but also allows employees to interact with different environments, which can boost creativity and reduce feelings of isolation. Employers can even offer stipends or reimbursements for working in co-working spaces or coffee shops to help facilitate this. It’s important to remind remote employees that stepping outside the confines of home can be a helpful way to recharge, meet new people, and foster a sense of connection with the world beyond their screens. This small change can make a significant difference in mental health, improving both mood and productivity. Key Takeaways Investing in mental health benefits doesn’t just support your team. It also enhances productivity and creates a positive, inclusive company culture. Taking steps to support mental health in the workplace shows your employees that they are valued and cared for, leading to a happier and healthier workforce. When mental health is integrated into your workplace strategy—not as an afterthought, but as a core focus—you create the conditions for long-term success, fueled by healthier, more focused, and more fulfilled employees.
Hiring interns—especially during the summer—can offer tremendous value to both the student and the employer. It provides an opportunity for students to gain valuable work experience while helping businesses bring in fresh perspectives and support on key projects. However, in addition to designing meaningful experiences, organizations must also navigate important legal and practical considerations, particularly around compensation. Should Interns Be Paid? While some internships are unpaid, it’s widely recommended—especially by career services professionals—that students receive at least minimum wage. Interns often contribute significantly to workplace operations and may perform tasks similar to those of regular employees. The Fair Labor Standards Act (FLSA) does not specifically define “intern” or provide a blanket exemption for them. That said, most HR and legal experts agree that, unless specific criteria are met, interns should typically be treated as employees and paid accordingly. There are exceptions, such as individuals volunteering for public sector or nonprofit organizations with no expectation of compensation. The DOL’s “Primary Beneficiary” Test To determine whether an intern must be paid, the Department of Labor (DOL) uses a flexible, seven-part test that assesses who primarily benefits from the arrangement—the employer or the intern. No single factor outweighs the others, but the overall context matters. For instance, if the intern is replacing paid staff or if the company directly benefits from their work, it may trigger employee classification. Here are the factors: Both parties understand there’s no expectation of pay. The experience includes training similar to that found in an educational environment. The internship aligns with formal academic programs or offers academic credit. The internship schedule accommodates academic calendars. The experience offers significant educational value over time. The intern’s tasks complement, rather than displace, paid employees. There’s no expectation of a paid job after the internship ends. When in Doubt—Pay If your organization stands to benefit more than the student, it’s safest to classify the intern as an employee. Doing so reduces risk and aligns with legal expectations at both federal and local levels. Remember: even if a program meets federal guidelines, stricter state laws may apply. Wage Requirements for Interns in New York State New York State’s Minimum Wage Act and Wage Orders contain specific rules for pay and overtime. These rules apply in addition to those required by federal law, including the Fair Labor Standards Act. Here are some important considerations for employers in New York State: Paid Internships: Generally, interns must be paid at least the state minimum wage. However, unpaid internships may be acceptable if they meet specific criteria, such as being part of an educational program overseen by an accredited institution that awards academic credit. Exemption from Minimum Wage: An intern may be exempt from minimum wage and overtime requirements if they meet specific criteria set by both the U.S. Department of Labor and the New York State Department of Labor. This includes criteria like the internship being similar to an educational program, benefiting the intern, not displacing regular employees, and having no expectation of a paid job after the internship ends. Paid and Unpaid Internship Clarification: There is no prohibition on an intern receiving academic credit while also being paid, as long as the employer adheres to minimum wage and overtime laws. The training should provide significant educational value, not just be for the employer’s benefit. Nonprofit Organizations and Interns: Not-for-profit organizations may have unpaid interns if they meet all criteria to not be considered in an employment relationship. Compensation and Classification Assuming your interns qualify as employees, they will almost always be classified as nonexempt under the FLSA, meaning they’re entitled to minimum wage and overtime pay. Rates should comply with whichever is highest: federal, state, or local minimum wage. Intern pay often varies by education level and field. According to the National Association of Colleges and Employers (NACE) , the average hourly rate for bachelor’s-level interns has increased annually and is now $23.04 in 2025. High school interns are typically paid minimum wage. Health Benefits for Interns Some employers choose to offer benefits, even though it’s not always required. Larger employers subject to the Affordable Care Act (ACA) may need to provide health insurance to interns classified as seasonal workers, depending on hours and duration of employment. If you’re considering extending benefits, it’s important to consult with your broker and review your benefit plan documents to confirm intern eligibility. Offering health benefits can enhance your organization's image among job seekers and college placement offices, but it also comes with administrative responsibilities—such as managing enrollment and COBRA communications. Best Practices for a Successful Internship Program Before the Internship Begins: Create a clear intern policy outlining job duties, compensation, benefits (if any), and at-will employment status. Assign supervisory roles and evaluation responsibilities to ensure guidance and support. When applicable, obtain documentation from schools confirming the educational value of the internship. Confirm whether your business or the educational institution has insurance that covers interns. Once the Intern Is Onboarded: Provide orientation that includes your company’s mission, policies, and workflows. Clearly explain pay schedules and applicable benefits. Review child labor laws if hiring minors. Be mindful of hour and duty restrictions for younger workers. Always check your state’s specific labor laws and requirements, such as work permits for minors. Final Thoughts Whether paid or unpaid, interns should be treated with the same care and oversight as regular employees. This includes timekeeping for pay accuracy, applying company policies uniformly, and ensuring workplace protections are in place. Interns may still have the right to file claims under federal or state law—even if unpaid—if workplace violations occur. A well-planned internship program not only benefits the student’s development but can also provide your business with fresh perspectives and assistance on key projects. Being proactive and compliant helps create a successful experience for all involved.
It’s April 15—Tax Day in the U.S.—and if you’re a business owner or HR professional, chances are W-2s, filings, and compliance have been front and center for weeks (if not months). But here’s the thing: tax season doesn’t have to be stressful. The right payroll and HCM technology can turn what’s traditionally a time-consuming, error-prone scramble into a streamlined, accurate, and surprisingly painless process. From automatically balancing year-to-date totals to generating and distributing W-2s on time, a robust payroll system ensures nothing slips through the cracks. No more cross-checking data across platforms, no more last-minute tax filings, and no more anxiety about penalties or missed deadlines. At Simco, we get it—because we help businesses simplify this process every single day. The Challenges of Traditional Payroll Tax Management If you're still managing payroll taxes manually—or using disconnected software systems—it’s all too easy to fall behind. Some common issues employers face include: Human error : Tax calculations, forms, and deadlines are complex. A small mistake can lead to penalties or costly overpayments. Time-consuming manual work : Without automation, payroll processing can involve endless imports, exports, and reconciling data across multiple platforms. Compliance risk : With ever-changing tax laws at the federal, state, and local levels, staying compliant can become overwhelming without the right tools. How the Right Technology Can Make Tax Season a Breeze Today’s modern payroll and HCM systems are designed to simplify these challenges. Here’s how the right technology can help: 1. Automated Tax Filing and Payments: An integrated payroll system automates tax calculations, deductions, and filings. Forms like W-2s and W-3s are automatically generated, filed, and paid—without manual input. This reduces the risk of late filings, penalties, and missed deadlines, ensuring compliance with the IRS and state tax agencies. 2. Streamlined W-2 Management: W-2s can be a headache to manage—especially if you have complex tax scenarios like multi-state employment. With an automated system, W-2s are generated and distributed electronically, ensuring accuracy even in complex situations. Employees receive the correct form without you having to spend valuable time cross-checking or manually making corrections. 3. Self-Balancing Capabilities: A self-balancing payroll system ensures that your year-to-date totals and tax filings are accurate, eliminating the need for extensive manual reconciliation. By automatically matching figures in real-time, it streamlines year-end reporting, providing peace of mind when the filing deadline approaches. 4. Fewer Third-Party Imports and Exports: With everything integrated into a single platform, you won’t need to rely on third-party software or services for tax filing and reporting. This means fewer opportunities for errors, fewer manual imports and exports, and significant time saved during payroll processing. 5. Automated Adjustments and Updates: Tax laws and rates change frequently. With the right payroll system, you won’t have to worry about manually updating deductions or tax rates. The system automatically applies changes—whether it’s an update to federal tax rates or state-specific deductions—so your payroll is always up to date. 6. Expert Support When You Need It: Even with the best technology, tax season can present complex challenges. That’s why it’s important to have access to expert support. Whether you need help with multi-jurisdiction filings, audit preparation, or just have questions about tax return procedures, our team of HCM Specialists at Simco is here to provide guidance and ensure that you’re compliant every step of the way. Why Choose Simco for Smarter Payroll and Tax Management? As an isolved Network Partner, we offer a fully integrated payroll and tax management system that is built to handle the complexities of tax season—and beyond. We provide businesses with the tools they need to automate tax filings, ensure compliance, and streamline payroll processing. Here's how we do it: All-in-One Payroll & Tax Platform : From payroll processing to tax deposits and W-2 filings, everything happens within one system, reducing manual work and the risk of errors. Automatic Filing & Timely Accuracy : Federal, state, and local tax filings are completed automatically and on time, ensuring your employees receive only one accurate W-2 form—even in multi-state tax scenarios. Error-Free Tax Reporting : Our self-balancing ledger helps reduce errors and simplifies reconciliation, making tax reporting easier and faster. Expert Support : Whether it’s navigating multi-jurisdictional filings, preparing for an audit, or handling amendments, our team is always available to offer expert advice and assistance. Cost-Effective Solutions : We offer top-tier tech at competitive pricing, often matching or beating our competitors (learn about the Simco Price Match Commitment here !), while providing the personalized service that large providers can’t. Let’s Make Next Tax Season Easier, Starting Today It’s never too early to think about next year. With our unified payroll/HCM solution at Simco, you can save time, reduce stress, and ensure compliance all year long. It’s time to upgrade your payroll system to one that works smarter, not harder. Let’s chat and explore how we can help streamline your payroll and tax processes, so you can focus on growing your business with confidence.
