The Surplus Lines Market is Not Just for Celebrities
January 25, 2022
The Surplus Lines Market is Not Just for Celebrities

In 2004 a movie came out with Ben Stiller and Jennifer Aniston called “Along Came Polly”, the movie centers around Stiller who is a Risk Analyst for a life insurance company and part of the story follows a Richard Branson type who is seeking life insurance. Stiller uses his Risk Master software to calculate the risk of insuring this individual who is an extreme adrenaline junkie. Needless to say, Stiller finds that the CEO’s penchant for danger makes him uninsurable for life insurance- how can you calculate a rate for someone willing to jump out of a perfectly good airplane? There are very few movies out there about insurance folks so bear with me while I circle back around on this.


We all know that you can insure a person through life insurance, although there are several hazardous occupations that make that endeavor expensive or seemingly impossible. The most dangerous jobs in the world include logging, commercial fishing, and mining, but did you know that it also includes farmers, truck drivers, and garbage collectors? These occupations are considered inherently dangerous and therefore the rates to insure the life of these occupations is costly and hard to obtain. Or what about the celebrities that want to insure their limbs? Rihanna, Heidi Klum and Jamie Lee Curtis insure their legs, Keith Richards insures his hands, Julia Roberts and America Ferrera insure their smiles and numerous other celebrities insure various parts and pieces for Millions of Dollars. So, where does one go to obtain insurance when the standard companies won’t take the risk?


Throughout modern history there have been insurers who have hit the headlines for covering unusual risks, mostly through a conglomerate of underwriters and actuaries that put pencil to paper to calculate manual rates for the risks and put up a promise to pay in exchange for a premium, essentially gambling that they will not have to payout. In theory, you can insure anything, from a satellite in space to the Titanic (the Titanic was insured for 1 million pounds). One of the many myths floating around Lloyd’s of London is thousands of policies taken out by people just in case they are turned into a vampire or werewolf (the Twilight Saga has some explaining to do). What about a movie director that wanted to protect himself against losses in the event that extraterrestrial intelligence was discovered before his movie came out to which the insurer refused, stating “I’m sorry Dave, I’m afraid I can’t do that”.


One of the most famous and largest conglomerates of underwriters in the world that take on this very enigmatic endeavor is called Lloyd’s of London. They are one of the many brokers who undertake the rating of the strange and unusual or the emerging risks that don’t have standard rates developed due to the newness of their innovation. They may also take on risks with adverse losses, high hazards and large values. This market segment is called Surplus Lines.


What is surplus lines insurance?

Simply put, surplus lines insurers are carriers that are willing to take on the risk when a number of admitted carriers have declined to do so. Standard market insurers continue to depart from certain lines of business, classes of business and certain geographies and are reducing limit capacities on both property and casualty placements. Admitted carriers seek to maintain underwriting discipline by reducing or withdrawing from certain risk classes to improve margins and de- risk their portfolios and the excess & surplus lines sector of the industry continues to grow as a result.


The U.S. insurance market is very competitive with many insurers licensed and admitted by states to provide coverage for numerous risks through a variety of distribution channels. Simply stated, in most states surplus lines insurers cannot write insurance coverage available from admitted insurers and may only write coverage rejected by a number of admitted insurers.


Are Surplus Lines Regulated?

While the surplus lines insurance market is regulated differently than the admitted market, it is a regulated marketplace. Surplus lines insurers are subject to regulatory requirements and are overseen for solvency by their domiciliary state or country. While solvency regulation is the responsibility of the surplus lines insurer’s domiciliary state or country, the surplus lines transaction is regulated through a licensed surplus lines broker. These brokers are responsible for ensuring the surplus lines insurer meets eligibility criteria to write policies in the state and to ensure the insurers are financially sound.


A consumer benefit available to admitted insurer policyholders but not available to surplus line insurers is protection by the state’s guaranty fund. This guaranty is funded by admitted insurers and will pay claims should an insurer become insolvent. Due to the strong and effective state-based solvency monitoring framework, the insolvency rate of surplus lines insurers has been historically equivalent to the admitted marketplace.


Just like Ben Stiller in the movie, surplus lines underwriters have to calculate the hazards and risks associated with the operations of that risk and calculate the premiums needed to cover their loss should it occur. This can be difficult when there is no past experience to draw from, but many times an underwriter will draw the knowledge and experience of similar risks to get to the point where they feel comfortable with the rate and an insurance policy is born. Most surplus lines business is not as dramatic as the examples above, but I have found through my 2-decade career to have experienced a few interesting endeavors such as a Reindeer farm, an antique steamboat, and my personal favorite, a fireworks factory (oh yes, they exist, Billy).


Not All Agents are Created Equal

When it comes to surplus lines insurance you need to have an agent that you can trust who knows the marketplace and the brokers like the back of their hand. Not all agents are created equal. If you’re in the market and not sure where you should turn to for your unique endeavor, try calling us at Simco. Our licensed agents can guide you through the process to provide you with insurance coverage as unique as your business.

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How the Right Payroll Tech Simplifies W-2s and Tax Filing

April 15, 2025
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.

SMART Goals: The Key to Crushing Your Business Objectives

April 4, 2025
New month, fresh start! But let’s be real—how many times have you set a goal, only to watch it fizzle out? Maybe it was too vague, too ambitious, or just got buried under the daily chaos. If you’re tired of spinning your wheels, it’s time to take a smarter approach—literally. Enter SMART goals —your secret weapon for turning ideas into reality. Whether you’re looking to improve employee retention, streamline operations, or boost revenue, this framework ensures your goals don’t just sound good but actually get done . The SMART Formula for Success Specific – Get laser-focused. A goal like “improve employee morale” is too broad. Instead, ask yourself: What does success look like? Are you reducing turnover? Increasing engagement scores? Define it. Measurable – Numbers don’t lie. How will you know if you’ve succeeded? Instead of saying, “increase engagement,” set a target: “Boost employee engagement scores by 5%.” Tracking progress keeps you accountable. Achievable – Dream big, but stay realistic. Sure, we’d all love zero employee turnover, but is it feasible? Probably not. However, reducing turnover by 15%? Now that’s a goal within reach. Relevant – Align with the bigger picture. Every goal should move your business forward. If your focus is employee retention, then prioritizing revenue growth over culture initiatives might not be the best move. Keep your goals aligned. Time-Bound – Set the clock. “Improve retention” is a nice thought, but without a deadline, it’s just wishful thinking. Instead, say, “Increase retention by 5% by the end of the year.” A firm timeline drives action. Track It or Lose It A goal without tracking is just a wish. You wouldn’t set out on a road trip without checking the map, so why leave your goals to chance? Regular progress check-ins—whether through weekly reports, monthly reviews, or real-time dashboards—help keep you on course. Tracking not only highlights wins but also flags roadblocks early, giving you the chance to pivot before it’s too late. And here’s the key: don’t just track for the sake of tracking—use the data to refine your approach. For example, imagine you're aiming to improve employee engagement scores by 5% by the end of the year. After tracking progress for a few months, you notice that engagement is lagging in one department. Instead of waiting until the year-end review, you dig deeper. Perhaps it’s due to lack of recognition or unclear communication—adjustments are made, and suddenly, the department starts seeing improvement. Tracking allows you to course-correct in real-time, ensuring that you hit your target rather than missing the mark. The most successful businesses aren’t the ones that never face setbacks—they’re the ones that track, adapt, and push forward. How We Use SMART Goals to Stay Ahead At Simco, we don’t just talk about SMART goals—we live by them. Our team follows the Entrepreneurial Operating System (EOS) , which helps us stay focused, aligned, and results-driven. A big part of EOS is setting Rocks —key priorities for the next 90 days. And guess what? Every Rock follows the SMART framework: Clearly defined objectives Measurable success markers Challenging yet attainable goals Aligned with our company vision Locked in with a firm 90-day deadline This system keeps us accountable, making sure we’re always moving the needle in the right direction. Your Turn: Take Action Today No more “someday” goals— today is the day to take control. Whether you’re aiming to increase revenue, refine your processes, or boost employee satisfaction, the SMART approach ensures you’re not just busy—you’re making real progress. Need help aligning your HR, payroll, or benefits strategy with your business goals? Simco is here to help . Let’s make this your most productive quarter yet!

The Do’s and Don’ts of Office Pranks

April 1, 2025
April Fools' Day is often the perfect opportunity for some lighthearted fun at the office. Whether it's a harmless prank, a funny email, or a playful desk setup, these moments of levity can help break up the monotony of the workday and bring smiles to your team. However, as many HR professionals know, it’s essential to strike a balance between fun and professionalism. While the intention behind pranks is typically harmless, they can sometimes cross boundaries and lead to uncomfortable situations, or worse, legal risks. Recently, an example came to light where one employee thought it would be funny to place a suggestive image on a coworker's desk. The issue arose when another employee saw the image and was offended, leading to a formal complaint. This scenario highlights the importance of knowing where to draw the line between lighthearted fun and inappropriate behavior. A Fine Line: When Fun Turns into Harassment Even if a prank isn't directly targeted at the offended person, it can still create a hostile work environment, especially if it makes someone uncomfortable. As an employer, it's crucial to ensure that your workplace remains respectful and free from harassment. If a prank results in a complaint, it's essential to follow your company's policies to investigate and address the situation. Proper documentation of your investigation and the actions taken is vital to demonstrate that you've fulfilled your obligations as an employer and to protect the organization in case of any future disputes. Setting Clear Expectations To avoid similar issues in the future, it's a good idea to review and clarify your company's stance on pranks and personal conduct in the workplace. Setting expectations starts with having a clear written policy that outlines what is and isn’t acceptable behavior, especially regarding pranks. Consider creating a set of guidelines that all employees can refer to, and be sure these expectations are communicated effectively to everyone. Here are a few tips to guide you: Establish a Formal Policy: Clearly define the boundaries of acceptable humor in your workplace. The policy should cover both pranks and jokes, specifying that while fun is encouraged, it should not come at the expense of respect, inclusion, or professionalism. Communicate Expectations Clearly: Include these guidelines in your employee handbooks or conduct policies, and ensure they’re reviewed during onboarding. Hold periodic team meetings to remind everyone about the importance of maintaining a respectful environment and reinforcing your stance on pranks. Set the Tone from Leadership: Managers and leaders should set an example when it comes to humor in the workplace. They should demonstrate the type of jokes or pranks that are acceptable and ensure their actions align with company policy. Employees are more likely to follow suit when they see their leaders taking these matters seriously. Encourage Open Communication: Foster a culture where employees feel comfortable speaking up if they feel a joke or prank crosses the line. Providing a safe outlet to discuss concerns without fear of retribution will help create an open, transparent environment where everyone feels heard. Categories of Pranks and Jokes That Cross the Line While there’s no one-size-fits-all approach, there are certain categories of pranks and jokes that should generally be off limits in the workplace . These pranks have the potential to cause harm, create discomfort, or violate company policies. By categorizing these behaviors, you can help employees better understand where to draw the line. Sexual or Gender-Based Humor : Avoid pranks with suggestive content, gestures, or language that can create a hostile work environment or be considered harassment. Discriminatory Jokes : Refrain from jokes targeting someone's race, religion, gender, sexual orientation, or other protected characteristics, as they can be harmful and illegal.  Invasive Pranks : Don’t tamper with personal belongings or invade others' personal space, as this undermines comfort and respect. Work Disruptions : Pranks that interfere with productivity or damage equipment should be avoided, as they can hurt overall efficiency. Aggressive or Harmful Pranks : Any prank that causes physical harm or emotional distress, including pranks involving physical touch or intimidation, is off-limits. Creating a Culture of Respect and Fun The key to managing pranks and other fun activities is to cultivate a workplace culture where employees feel comfortable, respected, and empowered. Rather than banning all pranks, focus on fostering a professional environment where employees understand the line between harmless fun and actions that could potentially harm or offend others. Encourage employees to engage in team-building activities and moments of levity that unite them in a positive and inclusive way, without crossing into territory that could lead to complaints or workplace tensions. As April Fools' Day passes, it’s important to remember that while pranks can provide a bit of comic relief, they should never come at the expense of respect or professionalism. By setting clear boundaries, encouraging open communication, and ensuring all employees understand your policies, you can create a workplace where everyone feels comfortable—whether they're laughing at a harmless joke or focusing on their next big project. Have fun in the workplace—but always ensure that a good laugh never comes at the expense of respect or professionalism!

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