What Is It?
If you are a HP employee, it is imperative to consider the protection of your assets when planning your finances. Personal liability insurance protects your assets if you are found legally responsible for injuring someone or damaging property. Several types of liability protection are available. As a fortune 500 employee, you can purchase basic liability protection as part of a property-casualty insurance package, essentially protecting you against other perils such as damage to your own property. You can also purchase extended coverage in the form of a comprehensive or umbrella liability insurance policy.
Tip: Personal liability policies exclude claims related to business activities, but if you own a business, you can purchase liability insurance specifically designed to protect business owners.
Types of Basic Personal Liability Policies Available
Automobile Insurance
If you are a HP employee and own a car, you may be legally obliged to purchase automobile insurance depending on your state of residency. An automobile insurance policy is made up of several parts, one of which is personal liability coverage. Most states require that you carry a minimum amount of liability coverage that is made up of two portions: bodily injury liability and property damage liability. While bodily injury liability pays claims resulting from injuries to passengers in your car, or in a car you collide with (if you are found legally responsible for the accident), property damage liability pays for things you damage with your automobile, such as another vehicle. Your automobile liability coverage will pay up to your policy limits for actual damages, and will also pay court ordered judgments for other losses (such as pain and suffering), and for your legal defense if you are sued.
Your automobile liability coverage is usually expressed as a split limit. If your liability coverage on your policy's declaration page is $100,000/300,000/50,000, this means that your insurer will pay a maximum of $100,000 to each person hurt in an accident, up to a limit of $300,000 per accident, and will pay up to $50,000 in property damage. No deductible applies. With that taken into account, as a HP employee you may want to consider purchasing insurance to further protect your assets from being lost in the event of an accident.
Homeowners Insurance
As a HP employee living in your own property, it is important to understand and consider the purchase of homeowners insurance as to protect your assets when faced with a disaster. Liability coverage under your homeowners policy is separated into two types. The first, personal liability coverage, pays an injured party for losses resulting from your actions. The second, medical payments coverage, pays an injured party's medical expenses incurred within three years of the accident that caused the injury. In addition, liability coverage under your homeowners policy will also cover you if you damage someone's property, and it will pay for the cost of legally defending you against claims. Many people carry a liability limit of $100,000 on their homeowners policies.
However, many policies are issued for more than this ($300,000 limits are becoming increasingly common). The liability portion of your homeowners insurance as a HP employee covers you both at home and away from home, covers members of your family who live with you, and protects you against many types of accidents and occurrences.
For instance, you may be sued when a tree falls on your neighbor's house and destroys the roof or if someone falls on your pool deck and breaks an ankle. You may be visiting a friend in a different city when your 10-year-old son throws a baseball and breaks your friend's nose; these accidents all may be covered under a homeowners liability policy.
Tip: Homeowners insurance does not cover motor vehicles that are registered and licensed by the state department of motor vehicles. However, some other vehicles (including trailers, golf carts, and some types of boats) are covered.
Tip: If you need more liability insurance than a homeowners policy can provide, consider purchasing a personal umbrella liability policy that will significantly expand coverage and offer a liability limit beyond that provided by your homeowners policy.
Condominium Owner's Insurance
If you are a HP employee, and you or a family member plan to purchase a condominium, it's imperative to protect yourself adequately against liability by purchasing a condominium owner's policy (the HO-6 form of homeowners insurance). Some states require that condominium associations purchase comprehensive liability coverage for their members (see below), but if your state does not, make sure that you buy adequate insurance on your own. The reasoning behind this is that condominium owners are sometimes involved in disputes related to insurance claims whose policy covers what is sometimes unclear.
While your condominium association will carry insurance protecting the building and its common areas, you need to protect your own unit and your assets against liability claims and property damage. As a HP employee it's also worthy to know that the condominium owners policy offers some protection if the condominium association and its individual members are sued. This process involves paying up to $1,000 if you are assessed special fees as a result of the lawsuit.
Mobile Homeowners Insurance
Mobile homes may be truly mobile (on wheels) or set on a foundation. This means that sometimes they are insured more like vehicles and sometimes more like homes. Some stationary mobile homes may be covered by homeowners forms HO-2 or HO-3 if a mobile home endorsement is added to the policy. Others may be insured by separate mobile home policies. As a HP employee it is important to understand that no matter what the form is, mobile home insurance should contain liability coverage that will protect you if you injure someone or damage property.
Renter's Insurance
Many tenants don't bother to purchase renter's insurance (the HO-4 form of homeowners insurance) because they think that their belongings aren't numerous enough or valuable enough to insure. As a fortune 500 employee however, you may not want to overlook another important reason to purchase renter's insurance: the personal liability coverage it offers. You need liability coverage when you rent for two reasons:
First, like a homeowner, you're at risk if someone is injured in your rented residence or if you cause a fire or accident in your building and others are injured or their property is damaged. As a HP employee, if you are sued either by other tenants, by a third party or by your landlord, and you are found legally responsible, you will have to pay for any damages or costs out of pocket unless you own renter's insurance. If you do purchase a renter's policy, you will be covered up to a certain liability limit, and no deductible applies to the liability portion of your policy.
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Watercraft Insurance
If you are a HP employee and own some type of watercraft, the means of protecting yourself against liability depends on the type of watercraft you own. For instance, if you own a motorboat, a jet ski, or a boat under a certain length, it is likely covered under your homeowners policy (if you have one). However, if you own a larger boat or a yacht, you may need to purchase a watercraft package policy or personal yacht (Ocean Marine) insurance that will offer you protection and indemnity, which is a form of liability insurance.
Types of Extended Liability Policies
Personal Umbrella Liability Policy
As a HP employee, you may want to consider different policy alternatives in order to elect the one best suited for your needs. A personal umbrella liability policy can protect you more completely than basic liability coverage can. It protects you against losses that basic liability coverage often excludes, and covers losses up to a higher limit. Unlike other types of liability coverage, a personal umbrella liability policy can be purchased as a stand-alone policy. Despite that, your insurer will require that you have underlying basic liability coverage (usually an automobile or homeowners policy, or both) before you can purchase an umbrella liability policy.
If you are a HP employee and are found legally responsible for an injury or for property damage, your basic liability policy will pay first. If damages exceed the liability limits of your basic coverage, your umbrella policy will then pay the remainder up to the limits of that policy. In cases where your underlying policy does not cover the loss (e.g., you are found liable for personal injury), your umbrella policy may pay the total damages due.
Comprehensive Liability Policy
A comprehensive liability policy protects those without underlying basic liability coverage, usually because they don't own a home or a car. If you purchase such a policy, as a HP employee your policy will pay damages resulting from covered liability claims against you, including legal and medical costs.
Example(s): Hal owned a dwelling policy on a four-unit apartment building he was renovating, but he wasn't covered for liability under the terms of the policy. So he purchased a comprehensive liability policy that would protect his assets in the event he was sued.
Tip: Although the terms 'comprehensive liability policy' and 'umbrella liability policy' are used interchangeably at times, they are different largely because a comprehensive liability policy does not require underlying coverage, while an umbrella policy does (see below). In addition, the coverage under a comprehensive liability policy may not be as broad as coverage under an umbrella liability policy.
Excess Liability Policy
An excess liability policy can be purchased to supplement coverage provided by basic liability insurance. Coverage under an excess liability policy will be identical to coverage under the basic liability coverage, but will have a much higher liability limit.
Tip: A personal umbrella liability policy is sometimes known as an excess liability policy, but is different in that it doesn't duplicate coverage provided by the underlying policy. Rather, it provides both excess coverage (a higher limit of liability coverage) and broader coverage (it covers things that the underlying policy does not cover).
How does HP Inc. ensure that the pension plan benefits will remain stable and secure for employees in the future, and what measures are being implemented to mitigate financial volatility associated with these benefits? Employees of HP Inc. should be particularly aware of how the transition of their pension payments to Prudential will affect their financial security and what protections are in place to ensure that these payments are maintained without disruption.
HP Inc. ensures pension plan benefits remain stable and secure by transferring the payment obligations to Prudential, a highly-rated insurance company selected through a careful review by an Independent Fiduciary. This move is aimed at reducing financial volatility associated with HP's pension obligations while maintaining the same benefit amount for retirees. Prudential's established financial stability provides additional security to employees(HP Inc_November 1 2021_…).
What specific details can HP Inc. employees expect to learn in the Welcome Kit from Prudential, and how will these details help them understand their new payment system? HP Inc. pension participants will need to familiarize themselves with the information outlined in the Welcome Kit to make informed decisions regarding their pension benefits going forward.
The Welcome Kit from Prudential will provide HP Inc. employees with instructions to set up an online account, along with details on managing payments, tax withholdings, and other resources. This information will allow employees to familiarize themselves with Prudential’s system and ensure a seamless transition without disruptions(HP Inc_November 1 2021_…).
In what ways does the selection process for Prudential as the insurance provider reflect the commitment of HP Inc. to the well-being of its employees? Understanding the rationale behind this decision will give HP Inc. employees insights into the fiduciary responsibilities and governance processes that protect their retirement benefits.
The selection of Prudential reflects HP Inc.'s commitment to employee well-being, as it involved the Independent Fiduciary conducting an extensive review of insurance providers. Prudential was chosen based on its financial strength and ability to manage pension payments securely, showing HP's focus on protecting retirement benefits(HP Inc_November 1 2021_…).
How will the annuity payments from Prudential differ from the previous pension payments in terms of tax implications and reporting for HP Inc. employees? It is crucial for employees of HP Inc. to comprehend the tax treatment of their new annuity payments to avoid any potential pitfalls in their personal financial planning.
The annuity payments from Prudential will be taxed similarly to the previous pension payments, though employees will receive two separate 1099-R forms for 2021 (one from Fidelity and one from Prudential). For future years, only a single form will be issued. This ensures employees are aware of how to manage tax reporting(HP Inc_November 1 2021_…).
What resources are available to HP Inc. employees seeking assistance regarding their pension benefits, and how can they effectively utilize these resources to address their concerns? Knowing how to access support and guidance will empower HP Inc. employees to manage their retirement benefits proactively.
HP Inc. employees seeking assistance can access live customer support through Fidelity or contact Prudential directly after the transition. Additionally, the Welcome Kit will include important contact information for managing their benefits, making it easy for employees to address concerns(HP Inc_November 1 2021_…).
How can HP Inc. employees verify the financial health and stability of Prudential, and why is this factor important in the context of their pension benefits? Employees must ask how Prudential's financial standing influences their view of long-term pension security and what metrics or ratings they should consider.
HP Inc. employees can verify Prudential’s financial health by reviewing Prudential's annual financial reports, which are publicly available. Prudential’s strong financial ratings were a key factor in its selection, assuring employees of long-term pension security(HP Inc_November 1 2021_…).
What steps should HP Inc. employees take to update their personal information, such as banking details and tax withholding preferences, following the transition to Prudential? Understanding these processes will ensure a smooth continuation of benefits for HP Inc. employees as they adapt to the new system.
Employees do not need to re-submit their personal information to Prudential, as HP will securely transfer all necessary data, including banking and tax withholding preferences. This ensures the continuation of pension payments without the need for employee intervention(HP Inc_November 1 2021_…).
How does HP Inc. plan to address potential changes in the financial landscape that may affect pension benefits, and what role does the insurance contract with Prudential play in this context? HP Inc. employees should be informed about the company's strategic outlook and how it aims to safeguard pension assets against economic uncertainties.
HP Inc. plans to address potential financial changes through its contract with Prudential, which guarantees pension payments will remain the same. Prudential manages these risks as part of its core business, providing added security against economic volatility(HP Inc_November 1 2021_…).
In what circumstances might HP Inc. employees see changes in their net pension payments following the transition to Prudential, despite assurances that payment amounts will remain unchanged? This understanding will help employees manage their expectations regarding future payments and any adjustments they may need to make.
Employees might see changes in their net pension payments due to tax adjustments or changes in withholding instructions, but the gross payment amount will remain unchanged. Any garnishments or other deductions will continue as before, ensuring consistency in payment structure(HP Inc_November 1 2021_…).
How can HP Inc. employees contact the company directly to learn more about the pension transition process, and what channels are available for them to have their questions addressed? Clear communication lines are essential for HP Inc. employees to ensure they receive timely and relevant information regarding their pension situations.
HP Inc. employees can contact the company through the Fidelity support line or directly through Prudential for any questions about the pension transition. The Welcome Kit and other resources will provide contact details, ensuring employees have access to timely support(HP Inc_November 1 2021_…).