R&R Insurance Blog

As fall creeps in, the risk of a deer-vehicle accidents greatly increases. Deer-vehicle collisions are actually three times more likely to occur on a day in November than they are on any day between February 1 and August 31.

Travelers recently provided these valuable driving tips to help you avoid hitting a large animal and to limit or avoid damage to your vehicle:

• Deer collisions typically happen from sunset to midnight and in the hours before and after sunrise. Be especially alert during these times.
• Drive carefully through areas with high deer populations and deer crossing zones. Deer typically travel in numbers, so where you see one, there are likely others.
• When traveling at night, use your high beams whenever possible.
• If you see deer, slow down and blow your horn to frighten them away. Stay in your lane and brake firmly. Many deer-related accidents are caused by one car hitting another while attempting to avoid an animal.
• Always wear your seatbelt.
• Do not rely on deer whistles to repel deer.

For additional resources, contact a Knowledge Broker at R&R Insurance. Drive safely!

The 2015 WI Cyber Security Summit will be held on October 28, 2015 at the Marquette University Alumni Memorial Union, Monaghan Ballroom, 1442 W. Wisconsin Ave, Milwaukee. The conference begins at 7:30 am. Registration will be available shortly at www.homelandsecurity.wi.gov. The conference is hosted by the State of Wisconsin and will include Cyber disruption response strategies, addressing cyber threats, recruiting & training the cyber security professional and networking with cyber security leaders.

Data Breaches and the FTC

As if businesses didn't have enough to worry about, on August 24, 2015 the U.S. Court of Appeals ruled in a unanimous decision that the Federal Trade Commission has the authority to bring actions against companies for failure to adequately protect consumer information from data breaches. The decision involves the case of Federal Trade Commission v. Wyndham Worldwide Corp, et al. Wyndham suffered a data breach in 2008 and 2009 when hackers gained access to their property management systems and stole information of more than 610,000 consumers. The Court ruled that the authority of the FTC resides under a section of a 1914 federal law that prohibits "unfair trade practices." The FTC claimed that Wyndham's computers "unreasonably and unnecessarily" exposed consumer data from the risk of theft.

Tracking a Bluetooth Skimmer Gang in Mexico
This is a really interesting article that outlines how the author found at least 19 different ATMs that had been hacked from the inside and retrofitted with tiny, sophisticated devices that store and transmit stolen card data and PINs wirelessly at various resorts in Mexico.

With summer coming to an end and fall creeping in, most of us are planning to hunker in for the cold weather. For many, this becomes the perfect time to start a home renovation or home improvement project. According to Statistic Brain, in the next two years 26% of homeowners plan a bathroom renovation or addition and 22% plan a kitchen renovation or addition.

If you are planning to be a part of that percentage, we highly recommend keeping these tips in mind:

1. Consider how the renovation will impact the value of your home. Do you need to update your property insurance? With large increases to the value of your home, it’s important to be sure your insurance agent is aware.

2. When working with a contractor, be sure to get referrals from family and friends. Do you trust the person you’ll be inviting into your home day after day? Do they have a clean track record?

3. Check out the Better Business Bureau for additional contractor and subcontractor references. This is a great way to avoid surprises and ensure you’re happy with the quality of work at the end of the project.

4. Make sure your contractor provides proof of insurance. Ask to see their certificates and be sure that coverage will be in effect the entire time the work is being done. This will cover any damages, injuries, etc. that may occur.

5. Contact your knowledge broker at R&R prior to signing any contracts. Not keeping your insurance agent informed may leave you with claims that are not covered. At R&R, we are more than happy to walk you through contracts and answer any questions you may have before signing the dotted line.

Home improvements and renovations are an exciting time for any homeowner! Be sure to keep these tips in mind, or contact a knowledge broker for more information.

There are various reasons as to why a business may try changing their Work Comp policy effective date: matching your Work Comp policy to your fiscal year or Package policy, request by new ownership, or you’re trying to get out of the Pool. Before you start down this road, you should first be looking at the financial impact of making this change.

It’s never as easy as it seems! We worked with a client who changed their effective date in order to make issuing certificates of insurance easier. This ultimately cost them $100,000!

A regular timeline has the Wisconsin Workers Compensation Rating Bureau (WCRB) using 36 months of data to determine an experience MOD rate. However, when changing your policy effective date, the WCRB is able to use up to 45 months of data. Say you have had a year or two with costly claims, they will hang on longer due to this process. Remember: the higher the MOD, the more expensive the premium.

It must be noted: an Anniversary Rating Date (ARD) would not allow you to take advantage of a rate or rule change.
Say after looking at business analyses, claims review, and the financial impact of changing the Work Comp effective date, you determine this is the best scenario for your business. Once you begin the process of changing your Work Comp effective date, it will take five years to get back to a regular rating cycle. Not only is this a time consuming process, it could be a very costly process.

The R&R Resource Center works with businesses every day to proactively manage claims, ensure correct analyses are being performed on Work Comp insurance, and educate the pro’s and con’s of changing effective dates. The processes in place help ensure accurate data which ultimately saves you money. Contact us today for a review of your current Risk Management Program.

Take control of the health and productivity of your employees - and increase profit. WellCompForLife is R&R Insurance Services’ total solutions approach to that will provide your company with the tools to increase the life span and productivity of your employees - and ultimately your bottom line!

The top three driving trends impacting an employer’s bottom line are Obesity, Workplace Injuries and the Aging Workforce.

Addressing These 3 Corporate Burdens to Increase Your Profit

1. Obesity - Yes, That Means Lose The Weight
Findings show that obese workers were more likely to report occupational injuries, with a great frequency of strains and sprains, along with falls and overexertion injuries. Consider these statistics: A comparison of obese employees to normal weight employees: 50% more workers’ compensation claims, 13x more lost work days, 7x higher medical costs, 11x indemnity claim costs. And this is just the workers compensation part. The negative effects of obese employees on your health insurance costs are overwhelming. Diabetes, heart disease, chronic pain - can all be attributed in part to being overweight. That means you have to do something about it - employee wellness programs, fitness, healthy eating, lifestyle changes for your employees and their families.

2. Reduce Workplace Injuries: Reduce the injuries to reduce the work comp claims!

• Slip-and-fall injury prevention: ensure a safe working environment by maintaining parking lots and sidewalks; encourage employees to wear appropriate footwear for wet or slippery conditions. Make sure you have handrails at all stairwells and inclines/declines - special attention to this for your aging workforce.
• Ensure employees can meet the physical requirements of the job: consider a post-offer, pre-employment physical for new employees – be sure the physician covers medical history as it may reveal something not seen during the physical (the cost of the test would pay for itself when preventing a back or shoulder claim!) Pay special attention to your aging workforce for their physical requirements.
• Ergonomics enhancement: ask employees for suggestions on how their job can be tweaked to avoid fatigue or soreness; consider job rotation for repetitive tasks (also promotes cross-training!)
• Wellness programs to aid injury prevention: help prevent strains, sprains, and falls by improving flexibility, strength, and balance. Great examples is starting a flex and stretch program, cover part of a gym membership, or hold exercise classes like yoga, Pilates, or Tai Chi.Also, having a structured return-to-work program has several benefits, the most important of which is the reduction of lost-time (lost-time has 3 times greater impact on your workers compensation premium dollars than a no-lost-time claim).

There are literally dozens of ways to increase safety and reduce injuries at your place of work. If they aren't apparent to you, bring a knowledgebroker in - we'll take a look around and give you some pointers.

3. Address the Aging Workforce
Experts predict that by the year 2020, 25% of the US workforce will be 55 years or older. Couple this statistic with the fact that most people are working past the traditional retirement age of 65 and organizations need to pay special attention to this sector of the workforce.

On average, older workers are injured less frequently than younger workers. However when older workers are injured, it will be more severe and have a longer recovery time. See Preventing Injuries in an Aging Workplace.

R&R Insurance has found that if businesses address the health of their employees, reduce their number of injuries and keep a close eye on ways to accommodate the aging workforce, you will see a significant positive effect on your bottom line! WellCompForLife processes will increase the health and longevity of your employees and their families giving you a lot more control over your health and work comp insurance costs, all while improving the productivity of their employees. This is control business owners don't realize they have. At R&R Insurance, we call this program WellCompForLife!

Join the WellCompForLife discussion on LinkedIn!

For more information about WellCompForLife, contact a knowledgebroker today!

It’s happening more often and to more businesses, regardless of the size or type of business.

An email is received instructing the transfer of money. It appears legitimate—from the CEO, CFO, or trusted vendor with instructions to initiate a wire transfer. No red flags are raised. The money is wired but the email was fraudulent. Unsuspecting businesses are falling victims to what is essentially a modern day con job. According to the FBI, “companies across the globe lost more than $1 billion from October 2013 through June 2015 as a result of such schemes.” The Wall Street Journal reported on one such company, Mega Metals that lost $100,000. Mega Metals, Inc is a 30 year old company with 30 employees.

What should you do from a both a preventive and reactive standpoint?

The best scenario is one in which the attempted fraud is detected and stopped. Alert and educate your employees so that they can be on the lookout for these schemes. One of our carrier partners has published a risk management brochure, the Guide to Preventing Social Engineering Fraud, by Chubb Insurance. Here are some of their recommendations:

1. Never release confidential or sensitive information to someone you don’t know
2. Establish procedures to verify incoming checks and ensure clearance prior to transferring money by wire
3. Establish call-back procedures to clients and vendors for all outgoing fund transfers
4. Verify any changes to customer or vendor details
5. Be suspicious of unsolicited emails
6. Avoid responding to any offers made over the phone or via email
7. Be cautious in situations where a party refuses to provide basic contact information

If all of the loss prevention measures fail and your business becomes a fraud victim, is your business insured?

Even though most business policies contain an extension of coverage labeled “Crime Insurance” this is usually intended to provide a small limit of liability for Employee Dishonesty losses only. The good news is that insurance coverage is available from several carriers designed specifically to cover this type of loss.

These crimes are successful because they exploit human qualities of trust, helpfulness and fear to manipulate people. Even with proper precautions prevention may not be enough.

Download our free e-book, Understanding Cyber Liability Insurance, or contact a knowledge broker to ensure that coverage is in place should your business become a victim.

Are you aware of punitive damages? Do you know if they are excluded from your current insurance policy? Society Insurance recently released an article covering the basics of punitive damages and how not having the proper coverage can affect your business.

Society states that simply put, punitive damages are a monetary award given to a plaintiff for the sole purpose of punishing a defendant for wrongful acts. They are not awarded in every case; acting maliciously or having an intentional disregard for the rights of the plaintiff are reasons for such an award. Gross negligence is a factor.

Punitive damage awards are above and separate from normal compensatory damages a plaintiff receives such as medical bills, lost wages, pain and suffering, etc.

An article by the Milwaukee Journal Sentinel outlines a case in Wisconsin where a $100,000 award for punitive damages was upheld. It involved a restaurant customer finding hair in his steak that was put there intentionally by a cook. The lawsuit claimed the cook had done it before. The jury’s verdict was a punishment for the restaurant not taking corrective actions with the cook sooner.

Unfortunately for defendants, some insurance carriers have excluded punitive damages in their policies. To learn more about the proper coverage for your business, contact a knowledge broker at R&R.

Cincinnati Insurance stated in a recent blog post that losses occurring on property you own can affect your livelihood and that of your tenants. They can also affect your insurance rates and eligibility. Without the proper controls in place, you could be saddled with the responsibility of owing for injury or damages that you did not cause.

Recognize the Risks

When you understand the risks you face as a property owner and lessor, you can better manage them. Consider these scenarios:

• Natural perils – A tornado sweeps through town, damaging your building and your tenants’ contents.
• Fire – A grease fire starts in a restaurant at one end of your building. Before it is extinguished, fire damages multiple units and tenant contents.
• Third-party injury or illness – A patron slips and falls in the parking lot, spraining her ankle.
• Change in occupancy – A restaurant replaces a retail store in one of your units. As a property owner, you want to determine if the current sprinkler system is able to handle the demands of a restaurant.
• Change in tenant operations – A retail craft store expands its operations to include pottery making. With this expansion, your tenant adds kilns to heat-treat ceramic projects.
• Vacancy – Your unoccupied building is vandalized, resulting in damaged property.

Review the Responsibilities

A well-designed lease agreement can assist owners in transferring responsibility for payment due to bodily injury or property damage to the legally responsible party. Consult with legal counsel when evaluating your current lease or other formal contract. When consulting with your attorney, consider whether your agreement:

• is signed by all tenants
• contains appropriate anti-subrogation wording and indemnification–hold harmless provisions favorable to you and acceptable under your state’s laws
• authorizes you to develop, change and enforce rules and regulations for the premises
• defines which areas you control and which the tenant controls
• defines the maintenance obligations of all parties while specifying the scope of the operations and the steps you will take if the tenant defaults on these obligations
• grants you the right to inspect the leased premises for conformance with the lease provisions concerning maintenance and to point out to the tenant any obvious hazards
• requires the tenant to obtain permission before performing any building alterations
• contains provisions regarding use of hazardous substances, dispensing of liquor and other activities that increase the risk of loss
• requires service contractors who come on your premises to provide certificates of insurance verifying adequate limits of insurance and appropriate state licenses, where applicable
• requires tenants to obtain specified liability insurance on behalf of the owner, with you listed as an additional insured on a primary basis. Make sure you obtain proof that the tenant has acquired and maintains all required insurance

Click here to read the full post by The Cincinnati Insurance Company, or contact a KnowledgeBroker at R&R for additional information.

Summer in Wisconsin calls for countless family celebrations, parties with friends, and neighborhood barbecues. Along with that comes the responsibility of what happens if an accident occurs at your home. To test your knowledge of your own insurance coverage, see if you can accurately answer the questions below.

Are the following incidents covered by your home insurance policy?

1. The neighbor’s son, Little Timmy, taunts your nine year old Golden Retriever and she snaps back with a bite. Timmy is left with a gash on his leg and a trip to the walk-in clinic. Covered?

2. Little Timmy’s older brother teaches the kids how to play backyard baseball and one goes right through the brand new front window. Covered?

3. Your family sticks around much longer than expected and the mayo filled pasta salad doesn’t get put away. They all call the next morning to tell you about their awful food poisoning and midnight trip to the emergency room. Covered?

4. Grandpa Joe, Uncle Don and Uncle Bob don’t listen to your direction and all sit on the same side of the 20 year old porch. All three are left sitting on the concrete when it collapses. Covered?

5. Your best friends bring a bucket filled with water balloons to your son’s birthday party. After an all-day battle, unlucky Little Timmy takes one right to his eye and winds up back at the walk-in clinic. Covered?

If you answered yes to all five questions above you are an expert insurance policy holder! All of the incidents above would be covered under your homeowners’ policy.

However, more often than not we recommend an Umbrella Policy to make sure you are adequately covered. Whether you own a home or car, are married, or have kids, an Umbrella Policy can save you from possible lawsuits down the road. Click here to learn more about the importance of having an Umbrella Policy.

The advancements in car safety features over the last few years have been tremendous. From automated braking and back-up cameras, to alert systems and running lights, “car safety” has taken on a whole new meaning.

While the majority of these features can be life-saving, they also offer a great deal of cost savings as well. Many insurance companies offer discounts to drivers whose vehicles are equipped with certain safety features. The USAA provides insight into a few of the most common features available:

1. Back-Up Camera. Once a luxury vehicle standard, the backup camera often displayed in the rearview mirrors or in-dash display is now a popular option on midrange cars, giving drivers assurance when backing out of a parking spot or down a driveway.
2. Automatic braking. If the driver doesn't respond to the warning, some systems are able to brake automatically to prevent a collision or lessen the impact. Systems that combine forward-collision warning and auto-brake are the most effective.
3. Adaptive headlights. This innovative technology, which allows drivers to see better as they round a curve, surprised researchers with how well it performed. According to Highway Loss Data Institute research, property damage liability claims fell as much as 10 percent with adaptive headlights.
4. Sideview assist. Sensors can detect a car in your blind spot and then alert you with a light in your side mirror or with a beep if you engage your turn signal.
5. Forward collision avoidance system. Using the same forward-looking sensors, these pre-crash warning systems alert drivers with visual or auditory cues when the vehicle is getting too close to the one in front.

To learn more about car safety features or to find out how they can positively impact your auto insurance, contact one of our knowledge brokers.