Water Damage -The leading cause of loss across all commercial structures
November 24, 2021
Destruction of Water Damage -The leading causes of loss across all commercial structures

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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The Employer's Guide to 2026 Minimum Wage Updates

November 5, 2025
As we move into 2026, employers across many states and localities are preparing for significant minimum wage increases. Nearly 20 states and more than 40 local jurisdictions will raise their wage thresholds effective January 1, 2026. This poses important planning, budgeting, and compliance considerations, especially for mid-sized employers like those that partner with Simco, where payroll, HR, benefits and advisory services intersect. Below we’ve summarized key state and local minimum wage updates and outlined the steps you should take now to stay ahead of the changes and mitigate risk. State-Level Minimum Wage Increases (January 1, 2026) The table below highlights selected state increases scheduled for January 1, 2026.

The Benefits of Outsourcing HR: Save Time, Cut Costs, and Boost Engagement

October 24, 2025
When HR Is Overloaded, Your Business Feels It For many small to mid-sized businesses, HR is one of the most critical (and most overextended) functions. From payroll and benefits to onboarding and compliance reporting, administrative tasks can quickly consume your team’s time, leaving little room for strategic work that actually moves the business forward. Sound familiar? You’re not alone. A recent survey from Champions of Change: isolved’s Fourth-Annual HR Leaders’ Research Study found that 51% of HR leaders spend four or more hours a day answering repetitive questions. This time could be better spent on employee engagement, culture, and growth initiatives. When HR teams are pulled in too many directions, the consequences ripple across the entire organization, resulting in missed deadlines, frustrated staff, compliance risks, and ultimately, higher turnover. Why HR Leaders Consider Outsourcing Outsourcing HR isn’t just for businesses without dedicated HR teams. In fact, a survey of 1,000 HR decision-makers found that 76% could benefit from outsourcing certain tasks, even though only 54% currently have plans to do so. HR outsourcing allows organizations to offload both core and strategic tasks, including payroll, benefits administration, recruitment, onboarding, compliance support, performance management, employee relations, and workforce analytics, without adding headcount. This augmentation provides a multiplier effect: a small HR team can function like a much larger one, accomplishing more in less time. By leveraging experienced HR professionals through outsourcing, organizations can free up internal HR teams to focus on initiatives that directly impact business growth, such as talent development, employee engagement, and culture-building. Routine administrative tasks, when handled externally, no longer distract from these high-value priorities. The True Cost of Administrative Overload Overburdened HR teams don’t just affect your internal operations; they impact your employees’ experience. Inconsistent onboarding can create a rocky first impression for new hires. Delayed payroll or benefits questions lead to frustration and decreased trust. Compliance oversights expose your business to fines and legal risk. Even small inefficiencies add up. According to the National Association of Professional Employer Organizations (NAPEO), organizations that leverage an outsourced HR model achieve an average ROI of 27.2% per year, saving around $1,775 per employee while paying $1,395 per employee for outsourced services. That’s not just cost savings, it’s a reinvestment in your team and your business. The Power of Strategic HR Outsourcing Outsourcing doesn’t mean giving up control or handing HR off to a faceless provider. Done strategically, it’s about extending your team. Administrative tasks like payroll, benefits, onboarding, and reporting can be handled efficiently by experts, while HR teams gain confidence that compliance requirements are being met. Most importantly, it frees internal HR to pivot from reactive, day-to-day tasks toward engagement, culture-building, and retention strategies. Outsourced HR support can scale with your business, providing additional expertise during busy periods, leaves of absence, or rapid growth phases. The impact is clear. Teams feel supported, employees feel heard, and the organization operates smarter, not harder. With the right outsourcing partner, a small HR team can act like a team of 10, and a team of five can perform like a team of 25, all while maintaining compliance and efficiency. Retention Starts With the Right Employee Experience When administrative burdens are reduced, HR teams can focus on creating meaningful experiences for employees. Transparent processes around pay, benefits, and policies build trust. Faster, more organized onboarding leaves a strong first impression. Access to modern self-service HCM tools empowers employees to manage their own information, reducing repetitive questions and improving engagement. By leveraging experienced HR professionals to handle gaps in internal processes, organizations can enhance overall employee satisfaction, ensuring every interaction, from onboarding to open enrollment, feels seamless and supportive. A Smarter Approach to HR Means a Stronger Business Across industries, companies are recognizing that HR outsourcing is no longer a luxury. It’s a strategic advantage. Organizations that adopt a blended model of technology and advisory support report measurable reductions in administrative workload, cost savings compared to maintaining fully in-house HR teams, and improved engagement for employees. Strategic HR outsourcing allows internal teams to shift from transactional tasks to big-picture initiatives, creating a more resilient, efficient, and high-performing workforce. At the end of the day, HR isn’t just a function; it’s the backbone of your organization. When it’s overextended, the entire business suffers. But with the right support, HR teams can focus on meaningful initiatives, employees feel more valued, and the business benefits from measurable ROI. Strategic HR outsourcing isn’t about replacing your team, it’s about empowering it. Your people, your culture, and your bottom line all benefit. Curious how Simco's HR Advisory services can help your business? Let's talk today.

Your Medicare Plan Is Discontinued: What’s Next?

October 14, 2025
If you recently received notice that your Medicare plan, or Medicare Advantage plan, is being discontinued, you’re not alone. Across the country (and right here in New York), insurers are scaling back or exiting less profitable markets ( Kiplinger ). While this can feel stressful, there are steps you can take to make sure your coverage doesn’t lapse and to find a better plan for your health and budget. Why Are Plans Being Discontinued? A mix of financial pressure, federal reimbursement changes, and rising health costs is driving insurers to reduce their Medicare Advantage footprints: Some major insurers are cutting back or exiting entire counties. For example, UnitedHealth announced it will discontinue its Medicare Advantage presence in 109 U.S. counties in 2026, according to Reuters . Local carriers in New York are also making changes: MVP is dropping several plans, and CDPHP is eliminating certain drug-coverage options, the Times Union explains . These shifts are happening alongside tighter government funding and increased regulatory strain. Because insurers must absorb the extra cost of covering benefits while meeting regulatory caps (for example, on prescription drug out-of-pocket limits), some plans become financially unsustainable and are discontinued ( the Kaiser Family Foundation ). Steps to Take if Your Plan Is Discontinued Here’s how to act so you don’t lose coverage: 1. Review the notice you received carefully Your insurer is required to send you a non-renewal or discontinuance notice. It often includes deadlines, whether you can enroll through a Special Enrollment Period (SEP), and what options you have. 2. Note the relevant enrollment period The Annual Enrollment Period (AEP) runs October 15 to December 7, 2025 , during which you can switch Medicare Advantage or Part D plans. If your plan was discontinued, some notices allow you to select a new plan until December 31 without penalty. In limited cases, you may qualify for a Special Enrollment Period (SEP) following the discontinuation. 3. Research your options early Don’t wait until the last minute. Compare plans available in your area. Key things to look at: Provider networks: Will your doctors still be covered? Drug formularies: Does the plan cover your medications and at what cost? Premiums, deductibles, and out-of-pocket max: These can vary significantly. Benefit trade-offs: Some plans reduce supplemental benefits (vision, dental, wellness perks) when trying to maintain financial viability. 4. Enroll in the new plan Submit your enrollment by the relevant deadline (typically December 7 for the Annual Enrollment Period (AEP). However, If your plan was discontinued, you may have until December 31 to choose a new one without penalty). Make sure the new plan starts January 1 to avoid coverage gaps. 5. If your plan wasn’t discontinued, still review Even if your current plan remains active, benefits, networks, and costs often change each year. It’s wise to compare alternatives anyway, especially after insurer shake-ups. Why Timing & Support Matter Delays cost you: Failing to enroll by deadlines could mean losing drug coverage or being locked into a less ideal plan. Support can ease the burden: Licensed agents can help you compare side-by-side, explain trade-offs, and guide you through enrollment. You deserve the best match: Everyone’s health and financial needs differ. Don’t settle for the first available option unless it truly fits. How Simco Can Help At Simco, we understand the stress of sudden plan changes. Our licensed insurance advisors are ready to: Help you interpret your discontinuance notice Compare plan options available in your area Assist with enrollment paperwork Explain benefit trade-offs and cost implications You don’t have to navigate this alone. Whether your Medicare Advantage plan was discontinued or you’re simply exploring your options, our team is here to support you. Contact us today to schedule a 1-on-1 consultation, and let us help you find the plan that keeps you covered and confident in 2026 and beyond.

Have a question? Get in touch.