Clearing the Air: The Value of Smoking Cessation Programs

Many employers may not realize the full cost that employee smoking incurs to their company. Smokers are much more likely to develop serious chronic medical conditions, visit the doctor more often, be absent from work with an illness, or have a short- or long-term disability—all of which are very costly to an employer’s health plan and productivity.

In fact, smokers cost private employers in the United States an extra $5,816 per year compared to nonsmokers, according to researchers at Ohio State University. Of that amount, $3,077 comes from smoking breaks, since smokers, on average, take approximately five breaks a day compared to the three breaks reserved for most workers. Excess health care expenses account for $2,056, and the remaining costs are due to increased absenteeism and lost productivity.  Implementing a smoking cessation program and incorporating benefits into your health plan can lower the number of employees who smoke and dramatically affect your bottom line now and in the future.

Studies have shown that employees are much more likely to quit when smoking cessation resources are included as paid benefits in their health plan. In addition, the Centers for Disease Control and Prevention (CDC) has stated that smoking cessation therapy is the most cost-effective health benefit that employers can offer.

Other strategies offered through an employer health plan and in the workplace to help promote smoking cessation include:

  • Establish smoke-free policies throughout your workplace
  • Incentive programs for employees who quit and stay smoke-free
  • Flexible spending program to reimburse smoking cessation counseling and 
prescription drugs (if your plan does not cover these items)
  • On-site counseling options (or counseling referrals)
  • Employee communications for education, promoting your program, and 
encouragement for those quitting
  • Participating in special events, such as the Great American Smokeout
  • Health risk assessments to identify employee smokers
  • Develop other creative ways to offer personal support and encouragement in 
the workplace for employees who are quitting
  • Consider including spouses and dependents in your smoking cessation 
benefits

The Benefits team at The Reschini Group can help you fashion a smoking cessation Program for your particular situation.  Contact us to learn more.


Copyright 2019 The Reschini Group

The Reschini Group provides these updates for information only, and does not provide legal advice.  To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.

It CAN Happen To You: Cybersecurity Claims Impacting All Levels of Business

The market for cybersecurity coverage remains competitive, and more business owners have decided to invest in insurance policies to protect from hackers and malware.  That’s the good news.

But the risk still outweighs the precautions taken, according to insurance industry watchers – and that’s the bad news.  Not enough clients are adopting the coverage, especially when proof continues to pile up that no organization is safe from a cyber event.

A 2019 Cyber Readiness Report from specialty provider Hiscox found that 53% of U.S. businesses reported a cyber attack in the previous 12 months, from 38% the previous year.  In all, 45% of those companies experienced three or more attacks in the past year.  Yet 27% of firms have no plans to adopt cyber insurance, according to the report.

Considering the potentially devastating cost of recovering from a cyber attack, that statistic becomes especially alarming.  According to McAfee’s 2018 Economic Impact of Cybercrime Report, the global cost of cybercrimes is estimated to be between $445 billion and $600 billion.  But less than 20% of all businesses have purchased cyber insurance.  That rate continues to increase, but not nearly to the degree to guard against harm to the level of exposure that remains.

Adopting a line of thinking that “It won’t happen to me” may be the biggest mistake of all, according to industry experts.  Business owners who only think of cyber attacks in terms of data breaches miss the other risks that exist, including extortion and business interruption – all of which represent serious and costly issues that need to be addressed through coverage.

The team at The Reschini Group can help put together the best package of cyber protection coverage for your business, regardless of size, scope, or industry.  Contact us to learn more.


Copyright 2019 The Reschini Group

The Reschini Group provides these updates for information only, and does not provide legal advice.  To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.