R&R Insurance Blog

In order to take a closer look at Employers Liability (EL), let's start with the basics of Workers' Compensation. Work Comp applies to bodily injury or disease caused by a condition of your employment. There are no limits for work comp. In addition, the state helps to regulate the amount paid out for workers compensation benefits.

Employers liability, such as negligence, pays damages that you legally must pay because of bodily injury to your employees that are not covered by the workers' compensation policy. The limits shown on the declarations page are the employers liability limits.

The 4 most common types of Employers Liability claims are:

• Third Party Claim or Action Over:   A claim filed by a third party against the employer for negligant actions that caused injury to an employee.
• Example: An employee is injured using machinery that was not well maintained by the employer. The employee received work comp benefits and also sues the manufacturer of the equipment. The manufacturer in turn sues the employer for negligence.

• Care and Loss of Services: Claim filed by the injured employees spouse for loss of the employees “services”. This can include dependents care and service that the injured parent can no longer provide.

• Consequential Bodily Injury: Claim filed by the injured employees family member for consequential injury.
• Example: Spouse suffers a heart attack after hearing of the injured employee

• Dual Capacity Claims: Claim brought by the injured employee against the employer when the injury arises from a product that the employer manufactures.

To learn more about Employers Liability or for questions about your business, contact a KnowledgeBroker.

We've all heard it before, "Make sure you let you car warm up in cold weather." But is there truth to that statement? Or is it just a convenience to hop into an already defrosted vehicle? Does letting your car idle prevent wear and tear on your engine, or simply waste gas?

Our partners at West Bend Mutual shared an article about the common myths and facts of warming up your car on a cold day. Here's an example of their findings:

Myth – It’s a good practice to let my car idle (warm) on cold days.

Fact – The only reason to idle a car is to circulate the engine oil. Experts recommend letting your car idle 10 – 30 seconds; there are no benefits to letting your engine idle any longer. The best way to bring your engine up to operating temperature is to gently drive your car. By simply driving your car, the engine and its components (brakes, transmission, etc.) will warm up faster which allows your car to run more efficiently.

Dan's Reality – Despite the benefits it may or may not provide, there's nothing better than getting into a car with defrosted windows, warm seats, and hot air blowing through the vents. A remote starter has been one of the best decisions I've made to get through Wisconsin winters. (Note: Don't forget to keep your car locked while you're letting it warm up!)

Click here to read to read the full list of myths vs. facts from West Bend Mutual.

A cold weather plan for your facility should be an integral part of your overall maintenance plan for the building and equipment, as well as part of your emergency response/contingency plan that helps your business respond to and manage an emergency event. Hanover Insurance Group provides these helpful tips for preventing cold weather hazards.

Before the Onset of Winter

Inspect the Building to Ensure

• Openings around exterior walls such as windows, doors, or other openings are sealed
• Equipment penthouses are secured from cold air infiltration
• Louvers are closed or sealed
• Dampers on ducts leading to the outside are closed (if possible)
• Attics and other areas are susceptible to the cold are properly insulated
• Adequate air flow to maintain heat in all areas of the building to a minimum of 40 F
• Roof is in good condition or make repairs as needed

Identify & Align Resources

• Qualified contractor to remove snow and ice from the roof
• Emergency generator
• Fuel supplies for critical operations such as fire protection equipment, processes, or on-site generators
• Snow removal services to ensure access to the property

When a Winter Storm and/or Deep Freeze is on the Way

• Monitor weather reports for information to include power outages, potential damage, access to facilities and prepare for action
• If needed, activate the emergency response team
• Monitor temperatures in areas susceptible to freezing or significant temperature fluctuations
• Monitor snow loads of roofs, especially in areas subject to drifts, and take action as needed
• Clear snow from outside sprinkler control valves and hydrants to keep them accessible
• Prepare for possible power outages
• Remove ice dams

After the Storm

• If needed, conduct a damage assessment and secure resources to complete repairs
• Initiate salvage operations
• If power was lost, make sure you have a plan to bring electrical loads back on line to prevent power surges that could damage equipment

For additional resources on cold weather hazards, contact a Knowledge Broker at R&R Insurance.

When it comes to our banking relationships many businesses and individuals are lulled into believing that their funds are totally secure. While all banks accounts are insured by the FDIC, many do not realize that the FDIC insurance only covers bank failures and does not apply in the case of theft by fraud. Since fraud, in particular social engineering fraud, is costing businesses billions of dollars, it is vital to understand what your bank’s position is regarding the safety of your money.

Is there any protection that your bank is providing in the event of fraud?

Here are some questions that business owners should be asking their bankers:

• Is the bank insuring our funds in the event that our user name/password is stolen and used to transfer money out of our account?

• Does the bank offer any protection in the event that our employee is tricked into transferring money out of our account?

• If our corporate credit/debit card is lost or stolen is there a limit on any amounts charged that we are responsible for?

• What are the bank’s responsibilities in the event that a bank employee is tricked into believing that they are talking to our authorized representative and a funds transfer is allowed to be completed?

• How secure are our funds in the event that the bank itself is hacked into?

In addition be sure to address all types of accounts that you may have, checking, savings, money market, retirement accounts, trusts etc. It is better to have this conversation with your bank prior to money disappearing from your account.

Last night TMJ4 aired a story that hits home to residents of Wisconsin. A Monroe woman was sentenced to using the identity of a Puerto Rican woman whose medical ID she bought on the black market for $1500. She used this false identity to have a liver transplant and incur over $200,000 worth of medical bills. The story also talks about a Kenosha couple who ran into problems when applying for a home loan due to unpaid medical bills that were caused by someone using the wife's medical ID.

The theft of medical information is very lucrative for criminals and target all healthcare providers as holders of this vital information.

As a healthcare provider you can be insured but the extent to which insurance applies is complex. We can review your program and advise you where you may be at risk.

Real-World Case Study: The Risk of Teen Driving
Provided by PersonalUmbrella.com

Emily, a 17-year-old, decided to treat her best friend, Taylor, to a movie to celebrate finishing their finals. They were running late and didn't want to miss the show, so Emily sped down the highway.

She lost control going around a notorious turn and crashed into a car with a family heading to dinner.

Sadly, Taylor passed away at the hospital months later due to serious complications. The family suffered loss of wages, emotional distress and lengthy hospitalization - and one child had a permanent disability and needed ongoing physical therapy.

Emily's parents' standalone personal umbrella policy covered the exorbitant medical bills of all the victims.

Claim: $3MM

Here are 3 reasons why you need an umbrella policy:

1. A standalone personal umbrella policy adds a critical layer of protection for liability loss exposure.

2. You don't need to be a millionaire to be sued like one. You could be liable for any injuries resulting from an at-fault, covered auto claim.

3. All licensed drivers in the household or regular use operators must be listed on all policies, including youthful/inexperienced operators. Contact your carrier for requirements.

Contact a Knowledge Broker in our Personal Insurance Department to learn more.

Throughout the course of the year, an insured can accumulate quite a few certificates of insurance that are distributed to various entities. Depending on your business, these certificates could be issued based on complex contracts that provide the holders with coverage from your policy.

When it is time for your policies to renew, it is important that you review the certificates that have been issued and determine whether they need to be renewed.

Here are some thoughts to consider when reviewing your certificate holders:

• Are we still on the jobsite or do we have any current work with this customer? In this instance they are most likely going to need to see you still have insurance coverage in place. Failure to do so could result in delayed payments or not be allowed back on to the jobsite.

• Do we have a completed operations requirement on the contract? It is easy to go through the jobs you had throughout the year and remove anything you have already completed. However, many contracts require completed operations coverage to be held for 2-3 years or even longer. To comply with this portion of the contract, they may need to continue to receive a certificate of insurance. HOWEVER, you may want to take a look at some of the extra costs on these contracts to see if you can remove them. For instance, if your employees are no longer on the jobsite, you may be able to remove the required workers compensation waiver of subrogation as the exposure would no longer apply. This could save you unnecessary costs on your renewal, if the waiver was added specifically for the project.

• Is the job completed &/or are the requirements of the contract completely met? If so, it is not necessary to renew the certificate and it should be removed from the certificate list completely. Any costs that you were paying for additional insured endorsements, waivers of subrogation, etc. can then be removed from the policy. The savings can really add up!

In the Commercial General Liability Coverage Form the term professional is not defined. There are instances where you could be considered a professional, however, if a claim arises there may not be coverage available in the general liability form.

There are also exclusions in the Commercial General Liability Coverage Form for personal and advertising injury if you are in the business of advertising, broadcasting, publishing or telecasting. In some cases you can add some professional liability coverage back on such as the Optical & Hearing Aid Establishment Endorsement, Druggist, and Cemetery Professional to name a few.

You may ask yourself, "Why should I purchase a separate professional liability policy?" The Commercial General Liability Coverage Form covers bodily injury, property damage and personal injury as the result of an occurrence. Many professional liability losses are not the result of an occurrence. A stand-alone professional liability policy may offer broader terms than the commercial general liability policy.

In certain cases it is hard to determine which policy would respond. For an example, if you are in the medical profession and the doctor orders an EKG for a patient who later falls and becomes injured while getting on the exam table, which coverage would trigger coverage, the commercial general liability policy or a professional liability policy?

If you are in the medical profession, accounting field, insurance agent, attorney, design professional, mortician, printer, social worker, trust department, veterinarian, or real estate agent professions we strongly recommend a professional liability policy.

There are several options available when considering a professional liability policy. Some of these options include:

• Would it be best to purchase an occurrence form or a claims made form?
• If I purchase a claims made form are prior acts covered?
• Are defense costs within the limit of insurance or outside the limits of insurance?
• Does the policy indemnify or pay on behalf of?
• Who has the right to settle a claim?
• Will the policy include my employees?

Contact a knowledge broker at R&R Insurance for more information.

Holidays don't need to be dangerous, they need to be celebrated! We have some pointers of things to watch out for so you and your favorite four-legged friend remain jolly!

1. Chocolate is everywhere during the holidays. Dogs are at risk for chocolate toxicity, which by itself is rarely fatal when treated. The darker and stronger chocolate put your pooch more at risk.

2. Ornaments, wrapping paper, ribbons, all things you'd think a dog wouldn't want to eat; however they do some silly things. Keep holiday decor up and out of the way!

3. Poinsettia and mistletoe are mildly toxic for dogs!

4. Grapes or raisin indigestion may lead to fatal kidney failure, so remind your guests not to throw any to your dog!

5. Onions and garlic also are toxic for dogs, and can cause anemia!

Holiday decorations that glitter with lights and sparkle symbolize the joyous spirit of the holiday season, but we must not forget the potential fire hazards that can be a tragic part of this time of celebration. Wisconsin residents, contact knowledgebroker Kori Cumley for fire safety tips or a quick quote on home and auto insurance.

Learn to Recognize the Warning Signs and Prevent Cyber Crime

Think your business is reasonably safe from a cyber-attack? Think again. The threat is so widespread that there is an entire black market built to arm hackers with the tools they need to breach your systems.

The good news is that there are a number of steps your business can take to not only protect your employee and client data, but also to demonstrate the level of diligence that is critical to your customers and insurers. Click here to download our free e-book: Prepare Your Business For a Cyber-Attack.

In addition to the e-book I want to share with you the results of the NetDiligence 2014 Study of Cyber Claims. This is their fourth annual study about data breaches and the claim losses they sustain. In the study they analyzed 117 data breach insurance claims in a variety of business sectors. They estimate this represents 5-10% of all claims filed. Here are some of the highlights:

1. Personally Identifiable Information was the most frequently exposed data followed by Personal Health Information
2. Hackers were the most frequent cause of loss followed by staff mistakes.
3. Healthcare was the sector most frequently breached followed by financial services
4. Small revenue (under $2 billion) companies experience most incidents
5. The average claim payout was $733.109. The average for a large company was $2.9 million, for healthcare it was $1.3 million
6. The average cost per record cost was $956.21
7. The average cost for Response Costs was $366,484
8. The average cost of legal defense was $698,797
9. The average cost of legal settlement was $588,520
10. Breach response costs are 30% higher when no insurance is in place.

This study further emphasizes the risks and the key role that insurance can play.