R&R Insurance Blog

On April 29, 2022, the IRS released Revenue Procedure 2022-24 to provide the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2023. The IRS is required to publish these limits by June 1 of each year.

These limits include:

• The maximum HSA contribution limit;
• The minimum deductible amount for HDHPs; and
• The maximum out-of-pocket expense limit for HDHPs.

These limits vary based on whether an individual has self-only or family coverage under an HDHP.

Eligible individuals with self-only HDHP coverage will be able to contribute $3,850 to their HSAs for 2023, up from $3,650 for 2022. Eligible individuals with family HDHP coverage will be able to contribute $7,750 to their HSAs for 2023, up from $7,300 for 2022. Individuals who are age 55 or older are permitted to make an additional $1,000 “catch-up” contribution to their HSAs.

The minimum deductible amount for HDHPs increases to $1,500 for self-only coverage and $3,000 for family coverage for 2023 (up from $1,400 for self-only coverage and $2,800 for family coverage for 2022). The HDHP maximum out-of-pocket expense limit increases to $7,500 for self-only coverage and $15,000 for family coverage for 2023 (up from $7,050 for self-only coverage and $14,100 for family coverage for 2022).

You can download our convenient chart here: HSA HDHP Limits Increase for 2023

Employers that sponsor HDHPs should review their plan's cost-sharing limits (minimum deductibles and maximum out-of-pocket expense limit) when preparing for the plan year beginning in 2023. Also, employers that allow employees to make pre-tax HSA contributions should update their plan communications for the increased contribution limits.

On August 13, 2021 OSHA put out a release designed to help employers protect workers who are unvaccinated or otherwise “at-risk” individuals. It is important to note that OSHA did not create a new standard as these are only guidelines (for companies outside of Healthcare).

When the pandemic first emerged, all companies were forced to make adjustments to protect their employees. As the first wave of the pandemic began to lessen, there was an understandable desire to return to “normal operations”. Unfortunately, as the case rate begins to rise again we need to once more take precautions using the information that is now available to us. That being said, it is a good time to look at what your organization is doing to minimize the potential for spread of the variant of Covid-19. This time around is different than when the pandemic first started. Besides dealing with a very contagious variant, we now have vaccines in play and know more than we originally did about how Covid-19 is most often spread.

To that end, OSHA published "Mitigating and Preventing the Spread of Covid-19 in the Workplace."

11 Things Employers Can Do to Mitigate the Spread of Covid-19 at Work

1. Facilitate employees getting vaccinated-OSHA has several ideas on how to best do this.

2. Instruct any workers who are infected, unvaccinated workers who have had close contact with someone who tested positive for SARS-CoV-2, and all workers with Covid-19 symptoms to stay home from work.

3. Implement physical distancing in all common areas at work for unvaccinated and otherwise at-risk workers. This is a reboot of the six foot distancing rule.

4. Provide workers with face coverings or surgical masks as appropriate, unless their work task requires a respirator or other PPE.

5. Educate or train workers on your Covid-19 policies and procedures using accessible formats and in languages they understand.

6. Suggest, or require, that all visitors wear face coverings when present on your company grounds.

7. Maintain ventilation systems - this has been a key way to help prevent the spread of this virus.

8. Perform routine cleaning and disinfection.

9. Record and report Covid -19 infections and deaths, if the cases are work related.

10. Implement protections from retaliation and set up an anonymous process for workers to voice concerns about Covid-19 related hazards.

11. Follow other applicable mandatory OSHA standards including PPE, respirators, Bloodborne pathogens, and others.

The entire article can be found at https://www.osha.gov/coronavirus/safework

Coronavirus Resources from R&R Insurance

From the onset of the COVID-19 pandemic, R&R Insurance has been providing updates of the ever evolving mandates and guidelines.  All resources to get businesses back to business can be found at https://www.myknowledgebroker.com/coronavirus-resources-back-in-business.

In response to the financial crisis in 2008 and 2009, financial institutions of a certain size are required to undergo regular stress tests. These financial simulations were designed to determine a bank’s ability to withstand an economic crisis and support economic activity.

The pandemic of 2020 and current variant strains in 2021 have dramatically reshaped business and changed the way business operates and manages risk.

For many, their business is their largest financial asset. Should business owners feel comfortable their pre-pandemic approach to their insurance program will perform under a post-pandemic environment?

A few insurance simulations for consideration:

• Phishing, Ransomware Demands, Social Engineering and subsequent lost income, cripple your business. How does your policy respond for each loss scenario?
• Key components to your product are being delayed overseas, orders are backing logging and customers are cancelling orders? Is your business covered for these supply chain risks?
• Does my policy contain virus, bacteria exclusions or limitations?
• Have nuclear verdicts and social inflation rendered my limits of insurance inadequate?
• Do my employees understand the value of tele-medicine options now offered?
• Would a Wellness program improve employee morale, while help manage costs?

Insurance buyers should demand more than a low price quote or two from their agent or broker. If you broker is not asking these questions, along with many others, to “stress test” your current program, you are placing your largest asset at risk.

Real time insights, client focused solutions, custom designed around your business is what R&R does best. Please give us a call, or send us an email, and let an R&R Insurance Knowledgebroker stress test your current insurance program.

On May 10, 2020, the IRS released Revenue Procedure 2021-25 to provide the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2022. The IRS is required to publish these limits by June 1 of each year.

These limits include:

• The maximum HSA contribution limit;
• The minimum deductible amount for HDHPs; and
• The maximum out-of-pocket expense limit for HDHPs.

These limits vary based on whether an individual has self-only or family coverage under an HDHP.

Eligible individuals with self-only HDHP coverage will be able to contribute $3,650 to their HSAs for 2022, up from $3,600 for 2021. Eligible individuals with family HDHP coverage will be able to contribute $7,300 to their HSAs for 2022, up from $7,200 for 2021. Individuals who are age 55 or older are permitted to make an additional $1,000 “catch-up” contribution to their HSAs.

The minimum deductible amount for HDHPs remains the same for 2022 plan years ($1,400 for self-only coverage and $2,800 for family coverage). However, the HDHP maximum out-of-pocket expense limit increases to $7,050 for self-only coverage and $14,100 for family coverage.

You can download our convenient chart here: HSA HDHP Limits Increase for 2022

As part of the American Rescue Plan Act signed March 11, 2021, $28.6 billion is allocated to the Restaurant Revitalization Fund program.  Monies from this fund are to be paid as tax-free grants to restaurants, bars, and associated food and beverage related businesses in order to provide them with compensation for their reduced revenues of 2020.

Generally speaking, restaurants can apply for grants that are equal to 2020 gross revenue minus 2019 gross revenue. For businesses in operation for all of 2019 and 2020, the maximum grant size will be $5 million for restaurants and $10 million for restaurant groups. Grant funds will not be taxed like income.

According to Forbes.com, "In addition to qualifying as an eligible entity, a business must also show that they have suffered a pandemic-related loss. In order to do so, an entity only needs to show that they had less gross receipts in 2020 than they did in 2019, but PPP loan proceeds are considered to be revenues for purposes of this calculation.

Therefore, under this new law, if your business kept the same pricing, sold one less side order of fries in 2020 compared to 2019, and received no PPP loan, your restaurant has suffered a pandemic-related loss."

Quick takes for the Restaurant Revitalization Fund:

• Amount given to restaurant in form of grant, not a loan. Does not need to be paid back if used for operating expenses. Grant is nontaxable.
• Definition of restaurant as follows: “Food stand, food truck, food cart, caterer, saloon, inn, tavern, bar, lounge, brewpub, tasting room, taproom, licensed facility or premise of a beverage alcohol producer where the public may taste, sample or purchase products, or other similar place of business which the public or patrons assemble for the primary purpose of being served food or drink.”
• Does not qualify if:
  1. State or local government operated business
  2. As of March 13, 2020 owns or operates more than 20 locations regardless of whether the location operates under same or different names
  3. Has a pending application for or has received a Shuttered Venue Operators gram
  4. Is a publicly traded company
• Determining amount of grant for existing restaurants:
  1. Gross receipts of restaurant in 2019
  2. Less gross receipts of restaurant in 2020
  3. Less amount of any PPP loan from first or second draw
• Apply at SBA.gov. No guidance yet on the application process from the SBA
  1. Priority in awarding grants (1) Women owned (2) Veterans (3) socially economically disadvantaged small business. Grant process will be open for 21 days.
  2. Max grant of $10,000,000 per application and grant limited to $5,000,000 per physical location.
  3. Eligible entity makes good faith certification that uncertainty of current economic conditions makes necessary the grant request to support its ongoing operations.

Is your restaurant still looking for tips on opening safely?  Download our complementary re-opening checklist for restaurants.

 

Sources: Forbes.com, USChamber.com

Every year when the calendar changes to January, many public sector customers ask questions about requirements of recording injuries and illness that arise in the workplace.

RESOURCES

• DSPS packet for employers with information on the requirements for Injury and Illness reporting
• Recordkeeping flowchart

REMINDERS FOR PUBLIC SECTOR

1. Recording Criteria - Follows the recording criteria as outline CFR 1904
2. Recording Forms – Document use WI Dept of Safety and Professional Services (DSPS) Form 10710A and 10710, found in the above SBD10710 packet link (contains the same as is found on OSHA Form 300 and 300A)
3. Electronic Submission Requirement – Due March 1
   1. eSLA Customer Portal Login
   2. If not submitted by 3/1, orders from DSPS may be issued and may conduct safety inspection
4. Posting – upon completion electronic submission an email confirmation with printable version for posting

For additional information and tools, check out our Downloads page.

On June 19, 2018, the Department of Labor (DOL) released a final rule that gives small businesses more freedom to join together as a single group to purchase health insurance in the large group market or to self-insure. These benefit arrangements are called association health plans (AHPs). The final rule allows working owners without other employees, such as sole proprietors and other self-employed individuals, to join AHPs.

The final rule allows employers to join together to form an AHP that is a single ERISA plan if either of the following requirements is satisfied:

• The employers are in the same trade, industry, line of business or profession; or
• The employers have a principal place of business within a region that does not exceed boundaries of the same state or the same metropolitan area (even if the metropolitan area includes more than one state).

Most AHPs will not be subject to the Affordable Care Act’s requirement to include Essential Health Benefits (EHB), which requires small group plans to cover a core set of 10 major items and services, such as mental health care, maternity and newborn care, prescription drugs and emergency services. Most AHPs will also be exempt from the ACA’s rating restrictions for the small group market, which means that AHPs may base premiums on factors such as age, industry and gender. The final rule requires AHPs to comply with certain consumer protections and anti-discrimination protections that apply to the large group market (learn more).

R&R will continue to keep you informed as we monitor developing guidance regarding AHPs and other benefits matters at the federal and state levels. For a more complete understanding of the new AHP rule, click here to read more.

Harvey Weinstein, Roger Ailes, Charlie Rose, Mike Cagney, David Guillod, Michael Oreskes and the growing list of executive sexual harassment scandals have dominated headline news over the past few months. The rising awareness of workplace misconduct, in an increasingly litigious society, may have employers quaking at the cost of defense. Regardless in size of the company, every business should consider putting the proper coverage in place to respond to this type of event.

Management fearful of costs associated with allegations ranging from sexual harassment to retaliation would best find relief with proper employment practice liability insurance (EPLI).

EPLI Overview

For most businesses, EPLI would not rank highest on a list of insurances to obtain such as general liability, property & casualty, and workers’ compensation. That said, EPLI should be an enticing insurance since, by a wide margin, it is the least expensive of the aforementioned.

EPLI coverage can be summed up as settlements, judgements, and the defense costs associated with claims against improper acts in the employment process. Common claims include harassment, defamation, discrimination, a hostile work environment, breach of contract, emotional distress, wrongful termination, and denial of career opportunity.

Not all EPLI polices are the same and it is best to discuss with your agent the proper coverage. One difference is the way policies may respond to 3^rd party claims.

Many EPL policies will only cover 1^st party claims. These are claims made by your employees or independent contractors. John Doe claiming wrongful termination would be covered in this scenario, but a customer receiving a harassing comment from your staff would be excluded from the policy. In short, if you deal with vendors, clients, or anyone from outside your organization, you have a 3^rd party exposure. Certain classes of business are at a greater risk - think restaurants, bars, and retail.

To address this exposure, make sure your EPLI carrier includes 3^rd party claims. In this scenario the company would also have coverage with vendors, customers, service providers, or business invitees.

A comprehensive summary of the legal environment and coverage practices of EPLI can be seen for free in R&R Insurance’s Employer's Practices Liability Insurance by Brian Bean. The 80 minute video is an excellent introduction for the information seeking executive wearing many hats.

EPLI Increasing Need

The elephant in the room is increased media attention around sexual harassment. Every day it seems a new celebrity or high profile executive has an allegation brought forth. A cursory glance at the trending #MeToo on Twitter would suggest a growing movement to callout organizational harassment of women.

EPLI not only mitigates sexual harassment risk, but a wide range of trending risk in the employment process.

In the last 20 years America has seen a 12% uptick in individual charge filings with the Federal Equal Employment Opportunity Commission. While Race and Sex discrimination make up the majority of cases, they have only risen slightly in number going year by year. The largest percentage increase in discrimination cases since 1997 have been Age (24% increase), Disability (36% increase), Religion (55% increase), and Retaliation (57% increase).

It may be surprising that 41.5% of these complaints were filed against companies with less than 100 employees – and these numbers only count filings at a federal level.

Media attention and rising awareness should be a major concern for a business lacking proper EPLI coverage. Its cost, relative to other business insurance, is low and mitigates a financially disastrous risk to the company. Executives would do well to, at the very least, inquire about the proper EPLI coverage from their agent.

This effort should be combined with proactive harassment training for your employees along with and proper procedures to respond to a claim situation.

That Nigerian prince requesting bank account information may be easy email fraud to spot, but what if a spoofed email arrived looking exactly like your boss? Business Email Compromise (BEC) scams are misleading employees into diverting company payments to swindlers who are impersonating customers, vendors, or senior executives.

According to FBI statistics, $1.6 Billion was lost by US companies between October 2013 and December 2016. Common scenarios cited by the FBI include fraudulent correspondence through a compromised email from a vendor or client, attorney impersonation, and wire transfer requests from a spoofed or hacked CFO email address.

The Hanover Insurance Group created a piece “Stop Imposter Fraud scams before they happen”. It's an excellent read pertaining to BEC. I’ve condensed some of their ideas from seven to four tips.

1)     Verify all changes to fund transfer payments over the phone.

Employees with the authority to transfer funds should not change vendor, client, or employee bank account information without first confirming the change with a phone call. This phone number must be previously established and not a number provided on a potentially fraudulent email.

2)     Be suspicious of emails calling for a rush transfer.

An email crafted to pressure an employee into transferring funds hastily should be a red flag. Employees should be trained not to fall victim to intimidation that might cause them skip authentication procedures.

3)     Limit the number of employees with wire transfer authority.

Fewer authorized personnel mean fewer targets for fraudsters. Supervisors should be required to sign off on changes to vendor or client/customer bank account information or internal/external wire transfers.

4)     If a scam email has been detected consult IT.

Stop the bleeding lest others be scammed. If a fraudulent email is coming from someone internally, your network likely has been breached. Actions should to be taken to secure the companies network.

Most insurance policies will not cover a BEC scam. The willful parting of money is often excluded from the language of contracts and usually requires the insured to add false pretense coverage to an existing plan.

Prevention is the ideal solution to BEC scams. Once compromised though, your only lifeline is false pretense coverage which normally is an addition. Be sure you’ve talked to your agent about the proper Social Engineering coverage.

It’s a common sight at any industrial park, but five open loading dock doors in front of a moody OSHA inspector could land your company a $63,375 fine!

The rules have changed. Welcome to 2017.

If your company hasn’t been waiting on bated breath for the latest regulations, on January 17 OSHA added wording to statute 1910.28. All unprotected sides and edges suspended 4 feet or more in the air must have approved fall protection in place. Violations could cost as much as $12,675 per occurrence.

Either word hasn’t travelled fast enough, or many businesses are ignoring the new regulation.

Driving through an industrial park last week I stopped counting the open loading docks when I ran out of fingers. By my calculation, 1/3 of the open dock doors were compliant, 1/3 had inadequate fall protection, and 1/3 had no fall protection at all. An overzealous OSHA inspector could take the same drive I did and rack up fines in the hundreds of thousands without leaving the comfort of his air conditioned Prius.

Who isn’t getting a raise this year, because Johnny left the dock door open on a hot day?

Every year Fall Protection is the number one hazard cited by OSHA. Of the 6,906 citations issued related to Fall Protection in 2016, most came from the residential construction industry (roofing). OSHA’s top priority is to get these numbers down, but the new rules are hitting general industry in ways many are not aware of - and in more ways than just loading docks.

OSHA’s new ruling requires edges 4 feet or more in the air to have one of three methods of protection:

• A guardrail system
• Safety net system
• Personal fall protection

For loading docks, practicality eliminates a safety net and personal fall protection system. That leaves two options:

1. Keep the loading dock doors shut when the truck is away
2. Install an OSHA approved guardrail system.

 

Don’t expect a thin chain or strip of highlighted caution tape to do the job. The guardrail must be able to take up to 200lbs of horizontal pressure and be highly visible. Two or more chains MAY be acceptable if they are spaced at both a “high” and “mid” tier level and visible, but the single chain is not kosher.

If keeping dock doors shut at all times isn’t practical, there are still many ways to stay OSHA compliant. The ideal solution might look like a Rite-Hite Dock-Guardian Safety Barrier which can handle up to 30,000lbs of horizontal pressure and is highly visible. Other methods used include a Vestil Safety Swing Gate or Uline Scissors Security Gate.

Another target of the January 17 language is guarding on fixed ladders. Stationary ladders must have a guard at their opening in order to be complaint. OSHA would frown on the ladder below.

Safety chains atop fixed ladders may have been okay in the past, but are now out. To remain complaint a spring loaded self-closing gate is needed. The reasoning behind this decision is that a safety chains do not close themselves. They require a worker to stand on the ladder while using one hand to reattach the chain with his back is to a hazard. A self-closing gate requires no such action and is OSHA compliant.

Fall protection is not required when using portable ladders however, OSHA still encourages employers to provide additional protection.

The January rule changes also call for a Walking Worker Surfaces Inspection. These inspections are to be done “on a regular schedule” and “when necessary”. These inspections are to be adequate enough to identify slip, trip, and fall hazards. Employers are mandated by the new rules to have a scheduled WWS inspection and to conduct more when conditions or events occur that warrant an additional check.

Don’t let OSHA catch you with a naked loading dock. Slip, trip, and fall regulations have been revised and employers are responsible for keeping up with the language. Especially when a violation is visible from the roadside, it’s probably worth fixing right away.