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R&R Insurance Blog

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New Audit Tool Now Available Through R&R's Risk Management Center

Posted by R&R Insurance

Audit-Track.jpgIs your organization looking for a way to streamline the audit process for safety and compliance? Do you struggle to create and maintain audits, surveys or questionnaires?

R&R’s Risk Management Center offers an easy-to-use, web-based solution to help manage the audit process from start to finish.

The Audit Track® provides your organization with the tools you need to proactively manage workplace safety, employee training, IIPP/APP safety program development, and OSHA compliance tracking, reporting and analysis. The tool also allows managers to oversee safety audit, inspection and compliance reporting needs, as well as confirmation that all tasks are assigned, completed and recorded – ensuring your workplace remains safe and compliant.

Completely customizable to your organization, the Audit Track® allows you to:

  • Create custom audits for your organization or department
  • Deploy in the field on any major mobile device
  • Assign to any employee and track tasks, activities and results
  • Access summary and detailed reports based on your criteria
  • Track, achieve and demonstrate regulatory compliance
  • Target and resolve revealed issues before they become incidents
  • Proactively manage your workplace
  • Set field audits and surveys to your unique reoccurrence
  • Make automated auditing an integral part of your safety strategy
  • Keep all Safety Audits, Inspections, Self Assessments and other workplace checklists up-to-date

For more information on R&R’s Risk Management Center and the Audit Track®, visit www.myknowledgebroker.com/RMC or email Safety@rrins.com.

Topics: OSHA Compliance, Safety, Risk Management Center, audit, Compliance

At Fault and Out of Insurance

Posted by R&R Insurance

car accident.jpgHave you ever thought about what would happen if you exceed your liability limits?

Many people believe that they are good drivers, and therefore do not need a lot of insurance. However, we would like to point out that no driver ever thinks that they are going to have an accident. Yet, in Wisconsin alone there are consistently over 273 accidents per day, and more than one of those accidents will result in a fatality  (WI DOT).

Wisconsin law requires you to have a minimum liability coverage of 25/50/10, which means:
  • $25,000 per person for bodily injury or death
  • $50,000 total for injury or death to multiple people per accident
  • $10,000 for property damage to others

Though some may take this as the state saying that this level of coverage is good enough, we would never advise anyone to have liability limits so low. In fact, some quality insurance carriers will refuse to write anything lower than 100/300/100. There are many good reasons for this.

Perhaps the easiest to understand is the limit for property damage. This coverage would pay for damages to other vehicles, street lights, fences, etc. Now think about your daily commute. How many vehicles do you drive next to every day that are worth more than $10,000?  A brand new Ford F-150. A two-year-old Chevy Equinox. Any Lexus, BMW, or Acura. A limit of only $10,000 may not be enough to repair and certainly not enough to replace many of the cars on the road. But when this limit is exhausted, it is not the end of the claim.

The owner of the car is going to want the vehicle fixed or replaced, and they are not going to pay for it themselves. When the $10,000 limit is cashed, your bank account and other assets can be used to pay for damages. One way or another, someone else is going to pay for those repairs. Either the liability limits on the policy will be high enough for the insurance carrier to cover the cost, or your savings, assets, and/or future paychecks will.

What is harder to understand but is also a bigger threat to your future earnings is the limit for bodily injury. Medical attention and emergency services do not come with price tags. We have a much more difficult time wrapping our heads around how much any type of surgery or doctor’s appointment will cost. However, I can assure you that these expenses can easily exhaust a low limit.

Recently, I had a small and planned surgery. I was only under the knife for 45 minutes and only in the hospital for 3 hours. No follow up appointments were required. Want to know what the final bill was to my health insurance?  Answer:  $22,000. A surprising number, right?

Now imagine that instead of a planned surgery, there was an emergency situation – like a car accident. Instead of one person being injured, there were multiple.  Instead of a few hours at the hospital, the victims needed a few days, and everyone needed physical therapy and months of follow up appointments with specialist.

Can you see how limits of $25,000 per person and $50,000 per accident are not only inadequate, but also extremely dangerous?

Just like the owner of the brand new Ford F-150 will not want to pay for his car to be repaired if you are at fault, you can bet that the injured victims of an auto accident are not going to pay for their medical expenses if you are at fault. Once again, either the liability limits on your policy will be high enough for the insurance carrier to cover the cost, or your savings, assets, and/or future paychecks will.

For more information please contact your Knowledgebroker. Be sure to ask him or her about your liability limits and if an umbrella policy would be right for you.

Topics: Auto Accidents, Auto Insurance

Driver vs Passenger: Where is Coverage During a Rideshare?

Posted by R&R Insurance

CarpoolingAs more and more people take advantage of the rapidly increasing rideshare options like UberX, Lyft, and Sidecar, it’s important to know what coverage you have. Whether you are the driver or a passenger, you should always fully understand what your insurance policy covers and where you may be exposed.

 

In general, there are three different insurance policies that may be active throughout the rideshare process:

  1. The Driver’s: the owner of the car and the driver of the vehicle must have a personal auto policy (PAP) provided by a personal insurance carrier
  2. The Company’s: the commercial auto policy (CAP) is provided by the rideshare company, officially called Transportation Network Companies (TNCs)
  3. The Passenger’s: if an individual has a PAP, then as passenger, the individual may have some coverage as a last line of defense

 

The driver’s PAP is in place until the rideshare app is turned on. As soon as the driver logs into UberX or Lyft, then all coverages provided by their PAP cease. It is also important to note that the CAP does not begin to provide any coverage or full coverage until a match has been made on the app. During this time, there is a gap in adequate coverage for the driver. (Click here for additional details on this gap).

 

As soon as the match is made, the CAP provided by the rideshare company begins. Most CAP policies carry liability limits of $1 million, though this is not guaranteed. Physical damage coverage (Collision and OTC) is available if the driver has the coverage on their PAP. These high liability limits could prove to be a source of comfort if the rideshare driver is involved in an accident while picking up or transporting a passenger. However, if the rideshare driver is at fault, and the passengers are injured, it is not as clear how much coverage is available for Med Pay for those passengers.

 

Fortunately, if the passengers have their own PAP, the Med Pay coverage will follow them into the rideshare vehicle. Unfortunately, while there will be some coverage to pay for medical expenses, the Med Pay limits are usually in the thousands while the injuries can cost tens of thousands of dollars.

 

As you can see, insurance for ridesharing can be complex. If you have any questions about your coverage as a passenger or the driver, please contact a Personal Lines knowledge broker at R&R. We can walk you through the process and assist with any questions you may have.

Topics: Personal Insurance

Ridesharing: The Insurance Gap Where the Driver is Completely Alone

Posted by R&R Insurance

Car-Driving If you are considering becoming a rideshare driver, this provides great insight into when and why you have no coverage.

 

There is a void between the time one’s personal auto insurance policy stops providing any coverage and the time the commercial auto policy starts. If there is ever an incident that occurs during this gap, drivers could find themselves left to pay for all damages on their own.

 

This gap exists because of the rapid rise of Transportation Network Companies (TNCs) like UberX, Lyft, and Sidecar. They have gained in popularity and spread throughout the US so quickly, that the insurance industry and lawmakers have not had the time they require to methodically update the policy language or laws. Revisions are required to better manage the new risk.

 

There are three distinguishable risk periods in the TNC business model. Period I is when the driver turns the mobile application on, logs in, and is waiting to be matched with a passenger. Period II is when a passenger has requested the driver’s services and the driver agrees – a match is made. Period III is when the passenger is in the vehicle with the driver, and they are en route to the desired location. So, when exactly does the driver of the private passenger vehicle become a transporter?

 

Personal insurance carriers argue that the instant the app is turned on, the driver is now working for the TNC – coverage ends at the start of Period I. The TNCs argue that the driver does not begin working until a match is made – coverage begins at the start of Period II. And therein lays the gap. Neither the personal insurance carriers nor the TNCs want to offer any coverage during Period I.

 

The traditional idea of carpooling and sharing the gas expense with a friend on a road trip does not present any problems to a personal auto policy. However, there is a dilemma when the driver is no longer sharing expenses but making a profit by delivering passengers or goods. This is because almost all personal auto policies have a specific exclusion for the transportation of goods or passengers (Livery Exclusion). Personal insurance providers have this exclusion because there are increased risks and claims that are associated with livery exposures, such as distracted driving, commuting in congested traffic, and additional mileage.

 

This exclusion, by definition, means that the very second the UberX or Lyft driver turns on the mobile app to find a passenger, the coverage from the personal insurance policy disappears. To make it even clearer, many insurance carriers are revising their policy language to specifically exclude coverage during all periods while the driver is working for a TNC.

 

The TNCs, on the other hand, view their drivers more like contractors than employees and do not believe that the driver has become a transporter in Period I. Their interpretation is that the driver is only hired to complete a job when a match is accepted. If there is no match, then there is no contract, and, if there is no contract, then the full insurance coverage is not in place.

 

In addition, TNCs are concerned with drivers unintentionally and intentionally turning on the app and not accepting any matches. They do not want their commercial coverage to become a substitute for personal insurance. It is on the other side of the coin, but again, there are increased risks and claims that the commercial insurance providers do not want to be held accountable for.

 

Still, some TNCs may provide lower limits of liability coverage only (bodily injury and property damage done to others) during Period I. However, these limits could easily be inadequate for serious accidents, and there would be no physical coverage for the vehicle.

 

So, for now, if you are considering becoming a rideshare driver, you will want to 1.) verify adequate coverage with the TNC, and 2.) be extremely cautious during Period I. Otherwise, if there is a claim, you could find yourself all alone. If you have additional questions, contact a knowledge broker at R&R insurance!

Topics: Personal Insurance

Challenge Accepted! R&R Particpating in Top 100 Active Companies Challenge

Posted by R&R Insurance

“For people who sit most of the day, their risk of a heart attack is about the same as smoking.” – Martha Grogan, Cardiologist, Mayo Clinic

R&R is excited to be participating in the WELCOA (Wellness Council of America) Top 100 Active Companies Challenge for 2015. Aimed to combat sedentary behavior, the Challenge triggers positive habit changes which make people continuously active throughout their daily life. The more active a person is, the healthier they become. The healthier they become, the happier their life is. And the healthier employees are, the lower the time and cost on health care.

To participate in the Challenge, companies must have 30% of their employees engaged throughout the 12-week program. In its pilot year, there are 38 companies taking part in Wisconsin. R&R is proud to be ranked in 5th place during week 6, with roughly 50% of our employees participating.

Along with the physical activity and educational aspects of the program, R&R employees have created entertaining contests to increase participation and engagement. Some of the latest contest winners included the following profile photos:

WELCOA_Winners

WELCOA will be giving statewide and nationwide recognition to companies that are actively fighting sedentary behavior. We are excited to share our final results with you at the end of the Challenge.

Stay tuned! And in the meantime, take time to MOVE throughout your day!

Topics: Employee Health, Active Lifestyle

Insight on Prevailing Wage Laws in Wisconsin

Posted by R&R Insurance

WisconsinA representative from WMC recently spoke to the Waukesha County Business Alliance Economic Development Committee to provide insight on the Prevailing Wage Laws in Wisconsin.

Established by the Davis Bacon Act of 1931, prevailing wage laws were geared to stop outside contractors from undercutting local businesses. Wisconsin actually has three separate prevailing wage rate laws, each covering a different type of public works project:

  1. Section 66.0903, Wisconsin Statutes covers projects bid or negotiated by a local governmental unit.
  2. Section 103.49, Wisconsin Statutes covers projects bid by a state agency, except state highway and bridge projects.
  3. Section 103.50, Wisconsin Statutes covers state highway and bridge projects bid by the Department of Transportation.

The Wisconsin Department of Workforce Development states “These laws mandated that most workers employed on public works projects must receive wages which are representative of the wages normally paid to workers on similar private projects in an area. Employers were required to base their bids on prudent planning, good management and supervision and the skill and efficiency of their workers and not solely on the wages paid to their workers.”

According to a recent study however, WISTAX stated that the formula for calculating prevailing wages in Wisconsin is flawed. The study showed prevailing wage rates are overestimated by 23% compared to Bureau of Labor Statistics (BLS) wage data for the same Wisconsin workers. When worker benefits are added in, taxpayers are paying for labor costs that are inflated by 45%. The current formula requires companies to submit data on wages, etc. They typically receive approx. 10% response rate.

Opponents of the potential reforms site concerns with outside contractors slashing prices and undercutting the marketplace, safety, and training. They are also operating under Union contracts that have prevailing wage laws taken into account.

Reform options that are being discussed and considered include:

  • Repeal 1, 2 or all 3 laws
  • Make an adjustment to increase the threshold for when prevailing wage applies
  • Reform the formula
  • Minimize Davis Bacon impacts

The situation currently at hand regarding the deficit with transportation fund in Wisconsin has elevated the importance of finding savings. The prevailing wage law will continue to be a discussion point. It is important to note that currently WMC has not taken a position on the pending legislation and it will continue to be a hot topic in the State of Wisconsin.

Topics: Business Insurance

Obesity Linked to Higher Workers Compensation Claims

Posted by R&R Insurance

A study recently conducted by the National Council on Compensation Insurance (NCCI) provides further proof of the emerging costs related to obesity in the workplace. Not only does it impact health insurance costs, but obesity has also been linked to higher workers compensation claims.

The article provides further proof that proactive wellness programs in the workplace are more important than ever. Manufacturers are already finding it extremely difficult to find skilled employees to fill vacant positions, particularly as one generation of skilled employees nears retirement age - as noted in the Manpower Group survey.

Given all of those factors, it's more important than ever to keep your current employees healthy, active, on the job and contributing their valuable knowledge to the organization. At R&R Insurance, we combine our extensive knowledge of how to reduce workers compensation claims with workplace wellness concepts to drive further reductions in insurance premiums that will positively affect the bottom line.

At R&R, we are seeing more and more small businesses in Wisconsin having serious discussions about the link between obesity and workplace injury. On top of that – when you factor in wellness programs that will increase the health and longevity of employees and their families – small businesses can have a lot control over their health insurance costs and the productivity of their employees - control that they don't know they have. At R&R Insurance, we call this program WellCompForLife! Join the WellCompForLife discussion on LinkedIn!

Wisconsin businesses, for more information about workers compensation, wellness or any property casualty and employee benefits issues, contact knowledgebroker Mike Payne.

Related articles:

Obese Workers Have 50% More Work Comp Claims