R&R Insurance Blog

As the cost of providing health care benefits continues to skyrocket, analyzing your benefits program is a great opportunity to see how you stack up against others in your industry. An attractive benefits program is vital for your recruiting and retention efforts, and is also a significant expense. To ensure you are providing a package that is both competitive and economical, you need to know how your offerings compare to those of other employees in your industry.

The first step to successful benchmarking is to identify different aspects of your benefits and choose which are most costly and which are most important to your business's success. There is information available for almost any aspect of a benefits program, from total costs and plan design, to paid leave and workers' compensation.

Click here for a free download on the importance of benchmarking, or contact a knowledge broker at R&R to see how you measure up against the competition.

As outlined by Payments Source, unprepared merchants may be at risk for significant loss to their bottom line if they suffer a data breach.

All merchants that accept, transmit, or store credit card holder data are subject to the Payment Card Industry Data Security Standard (PCI DSS). These security requirements were launched on September 7, 2006 to ensure that merchants maintained a secure environment for data. Any and all merchants that have a Merchant ID (MID) are subject to these regulations.

A new revision to these security standards takes affect at the end of June 2015. In short, merchants will need to change the common SSL (Secure Socket Layer) protocol to a more secure version of TLS (Transport Layer Security). E-commerce merchants will need to configure Web servers to work with TLS and turn off support for SSL, while brick-and-mortar businesses may need to update their payment applications.

For those merchants that are unprepared there is a significant risk for fines and penalties if they were to suffer a data breach. A security engineer for Trustwave Security told Payments Source that the fines and penalties could range between $100,000 and $500,000. In addition, penalties may include breach expenses ranging from $50,000 and $100,000, a $50 re-issuance fee per compromised card, and a $2 per customer for credit monitoring. These penalties are in addition to a wide variety of expenses to comply with breach notification laws.

While cyber and data breach insurance policies will include coverage for breach notification expenses, credit monitoring, and ID theft repair, many (but not all) policies provide coverage for PCI fines and penalties. At R&R, we can customize a policy to fit the needs of your organization. Contact a knowledge broker to make sure you are prepared.

More often than not, people are sued and have no extra protection to block the plaintiff from going after their personal assets in the lawsuit. To protect yourself from such a quandary, you need to have an umbrella policy. Every day ordinary citizens are served with a lawsuit, with the reasons ranging from justified to frivolous. A Personal Umbrella policy will help protect your assets from this lawsuit.

An umbrella policy is designed to protect you from almost everything that your home and auto insurance does not, as well as fill in gaps in coverage when the limits of your regular policy are exhausted. An umbrella policy is often referred to as excess liability. This excess liability coverage kicks in when the underlying limits on your home or auto policy have been exhausted. Depending on the company, you can purchase anywhere from 1 to 5 million dollars worth of excess coverage, sometimes as high as 25 million.

Most insurance companies will not offer you the coverage unless you have both your home and auto already insured with them. Also, the insurer will require that you maintain a certain level of liability on the home and auto policies in order to qualify for the umbrella policy.

The coverage is inexpensive. It is possible to obtain $1 million worth of excess liability for as little as $15/month. The more cars and homes you have, the higher the price for the insurance, but the cost is still low. In addition to your home and cars, liability associated with any other conveyances you may have, such as boats, motorcycles, and other recreational vehicles, may also qualify for coverage under the umbrella, depending on the insurance company.

Umbrellas often times pick-up miscellaneous coverages such as Personal Injury. This includes false arrest, false imprisonment, malicious prosecution, defamation, invasion of privacy, wrongful entry, or eviction.

Please feel free to contact a knowledge broker for more information on umbrella policies.

Although it may not feel like it now, summer is just around the corner. Before we know it school will be out, vacations will be planned, and boats will be hitting the water. Whether you are a new boat owner or you have had one for years, it’s important to refresh your memory with boat safety before heading out on the lake. Our friends at West Bend Mutual provided these simple safety tips for boating this summer:

1. Read your owner’s manual and understand the various on-board warnings located on your boat.
2. Wear a life jacket. While this sounds like common sense, the excitement of riding in a boat may take your focus off safety. A life jacket is like a seatbelt. It should be worn at all times because it can increase your chances of survival if there’s an accident.
3. Stock your boat. Make sure you have an appropriate life jacket for each person onboard. An adult life jacket is not appropriate for children. In addition, if you plan to be on the lake for the day, make sure you have plenty of water, sunscreen, medications, and snacks. Lastly, make sure you have a fire extinguisher, flares, maps, and communication devices in case you run into trouble. Here is a great video resource for the proper safety items to have onboard.
4. Bring a back-up. If you’re boating with friends or family, make sure somebody other than the driver is familiar with the boat. It’s not a safe idea for one adult to take a boat full of children out tubing. If the primary driver is injured or unable to navigate, it’s vital that a passenger is also familiar with the boat and can get you back to land safely.
5. Keep an eye on the weather. Summer weather can change quickly. Pay attention to your local forecast and consider signing up for weather alerts that can be sent to your Smartphone.
6. Be aware of your surroundings. Depending on the time of the year, boat traffic can be heavy on the lake. Make sure you always keep a close eye on what’s happening around you. If pulling a tube or skier behind your boat, always have a spotter to alert you of issues.

Taking a Boating Safety Course is another great way to ensure you have the most up-to-date information to protect you and your family. Visit your local DNR website for additional information. http://dnr.wi.gov/topic/boat/

If you haven't evaluated the value of your boat this season, contact your knowledge broker. We can ensure you have the proper coverage to get you through your summer on the water!

In case you haven’t heard of this, it is the latest trend in the theft of money that is NOT covered by either a Crime Policy or a Cyber Policy. Here is a description of how it works.

The accounts payable clerk receives an email from the company president directing him/her to transfer money to an account in China. Since the company regularly transacts business in China and the email came from the president, the clerk proceeds with the transaction. However, it turns out that the email was never sent by the president. Another example is that the company has a contract with ABC janitorial service. The accounts payable clerk receives an email from ABC indicating that they have changed their banking relationship and to direct all future payments to a different bank (including routing numbers/account number, etc.). Time goes by and ABC contacts the company and inquires why their account is 3 months past due. Turns out that ABC never sent the email changing the banking information.

These instances are not covered under a commercial crime as the policy was designed to cover theft perpetuated without the insured’s knowledge or through unauthorized access or fraudulent funds transfer by an imposter. There is no hacking, virus, unauthorized access to the network, etc. that would trigger any cyber coverage. These are examples of gullible employees who fail to follow procedures or assume that because they received an email it has to be true. A new version of “The Sting.”

For information on how to protect your business, contact a knowledge broker at R&R Insurance.

Efficiently running a business without outsourcing tasks can be a major challenge in the fast-paced world that we live in. As ProfessionalEmployer.net states, business operations such as accounting, tax filing, and human resources take up a huge amount of time and generate zero profit for the business, however, they are essential operations. This can be a large pitfall for business owners. While some companies choose to hire in-house employees to handle these areas of the business, others hire third party companies to do the work for them.

Professional Employer Organizations can be a great fit for many organizations and absolutely serve a purpose in the market. That being said, there are many cases where business owners do not properly utilize a majority of the services provided. As a result, owners are paying a higher administrative fee for a complete package of services that are potentially unneeded. Some key areas to be aware of include:

• Potentially Higher Insurance Cost
  For a long time, PEOs have claimed that they have the ability to obtain cheaper health insurance prices for their clients’ employees. While this is true in some cases, it’s not always that way. If a PEO has lots of clients, there is a decent chance that some of their clients have unhealthy employees in high numbers. In a case like this, the rate you are quoted by the PEO might be the same, or even higher, than the rate you could obtain on your own. This is entirely case-by-case, and it never hurts to compare rates.
  
  
• Unneeded Services
  PEOs offer business owners an array of services to choose from. While they are all useful, they may not all be needed based on the circumstances of your company. Some PEO’s package too many unneeded services together and charge for them whether or not they are used. An example of this would be recruitment and selection services. When selecting a PEO, it’s important to select a company that offers flexibility within their offering.

• PEOs Need to Be Profitable
  Unlike an in-house HR representative, a PEO is a business on its own. In order to stay in business, it needs to maintain profitability. So, if your business starts costing them too much time or money, they may place you in a higher-risk category, and may even raise your rates. As they say, there are no free lunches!

• The Fine Print
  Every PEO has different rules and terms. It’s important to review each and every detail of the contract before you sign it. It would be wise to consult with a third party attorney, as well. Short of that, you should talk to the PEO’s legal advisor. You should be 100% sure about every aspect of the contract before signing it.

When signing up for a PEO, I highly encourage business owners to ask as many questions as possible on the front end to ensure that they are clear on services provided and setting proper expectations. If you have any questions, please contact a knowledge broker for additional information.

Dan is currently a Benefits Consultant with R&R Insurance. With over 14 years of experience, he has an extensive background in the payroll, PEO, and HR related field.

The Office of Civil Rights (OCR) has proposed to ramp up their Phase II HIPAA audits at some point in 2015. Unlike the initial pilot Phase I audits, the second round will require compliance from the chosen health care account, as well as be expanded to include their “Business Associates.” Business Associates being subcontractors of health care organizations that have business agreements with the selected entity.

These audits will affect between 550-800 covered entities and their associated business partners chosen at random through the National Provider Identifier database.

What will the OCR be looking for?

• Risk analysis and risk management policies
• Content and timeliness of breach notifications
• Notice of privacy practices
• Individual access
• Training procedures
• Device and media controls
• Transmission security (Encryption)

The OCR will use the Phase II Audit findings to identify technical assistance that it should develop for covered entities and business associates. In circumstances where an audit reveals a serious compliance concern, OCR may initiate a compliance review of the audited organization that could lead to civil money penalties.

If you are a health care organization or have a Business Agreement with a health care organization, this may be a good time to review your Network Security Liability coverage with your insurance agent.

Contact our knowledge brokers for more information!

With the launch of Apple’s new high-tech watch, many people are placing orders and anxiously awaiting the arrival of their new gadgets in April. While all of the hype is centered on what the watch can do (which seems to be just about everything), it’s important to consider how you’ll protect this pricey new possession as well.

Most homeowner’s policies limit coverage for personal valuables such as jewelry. Unless your property is scheduled, or specifically itemized with a value on your policy, your home deductible will apply to a loss. Many people choose higher deductibles to reduce their premiums. If you’re one of them, it’s possible you may not receive a payment if your deductible is more than the amount of the loss. However, with broadened property coverage a $10,000 watch would cost around $85/year.

Whether you have questions about insuring your new Apple Watch or a piece of fine jewelry, contact our knowledge brokers for more information.

Whether you popped the question on Valentine's Day or perhaps gave your sweetheart a special piece of jewelry this year,  it's important to make sure that the gift you are gave (or received) is protected.

Here are a few simple steps to make sure you're documenting and protecting your jewelry:

1. Have it appraised and continue to do so every few years.
2. Keep your receipt and store the appraisal with your home inventory.
3. Take a picture of it up close, keep this with the receipt and appraisal.

Most homeowners policies limit coverage for personal valuables such as jewelry. Therefore, if your item is not listed on a "schedule" or "rider", you could fall far short of replacement value if your item is lost or stolen.

Below is a great resource for finding an appraiser:
National Association of Jewelry Appraisers (NAJA)

Wisconsin residents interested in a free homeowners policy review, contact a KnowledgeBroker.

"With spending on unmanned aerial vehicles (drones) projected to top $89 billion in the next ten years and an estimated 7,500 active drones to be in use for commercial purposes by 2018", this technology will present significant economic growth opportunities along with many uncharted challenges. As corporations such as Amazon and Disney jockey for the use of drones in the commercial marketplace, this is a pervasive topic in pop culture and consumers are gaining an increased understanding drones’ of their risks and rewards.

Defining Drones

So, what is a drone, exactly? According to the Federal Aviation Administration (FAA), a drone is “a device used or intended to be used for flight in the air that has no onboard pilot” and includes associated on-the-ground equipment. These unmanned aircraft are typically controlled remotely by an individual on the ground or self-navigate using pre-programmed flight plans. Increasingly, many drones operate via camera which enables them to fly without remote control or GPS data altogether.

Rules and Regulations

The United States government is notorious for its slow and tedious reaction to defining or loosening controls on private sector regulations. The case for drones in commercial use is no different. “In 2012, US Congress passed legislation that directed the FAA to develop a plan for integrating unmanned aircraft systems into U.S. Airspace by September 30th, 2015. According to a federal audit, however, it is unlikely this deadline will be reached.

In the meantime, the legality of modern drone use hinges on antiquated guidelines published by the FAA in 1981, originally intended for hobbyist model aircraft. The 1981 report dictates that unmanned aircraft be operated no higher than 400 feet above ground, away from populated areas, and no closer to an airport than three miles.

With the 1981 guidelines so blatantly open to interpretation, the FAA further defined their position on the issue in February 2014, stating “[y]ou may not fly a UAS for commercial purposes by claiming that you’re operating according to the Model Aircraft guidelines…Commercial operations are only authorized on a case-by-case basis. A commercial flight requires a certified aircraft, a licensed pilot and operating approval.” To date, the FAA has approved commercial drone use for only a small a handful of corporations.

Opportunities Drones Present

One significant benefit insurance industry professionals and consumers could see from the use of drones is in the inspection of premises after a loss. Using a drone to collect visual data rather than a claims adjuster could help decrease wait times for claim assessment, increase accuracy of loss analysis, and expedite the pay-out of said losses. Recently, the United Services Automobile Association (USAA) filed for permission to use drone aircraft to assess damage at disaster sites. Undoubtedly, many insurance carriers will follow suit as the FAA advances the regulatory process.

Additional economic opportunities include:

• Decrease in workers’ compensation claims as drones are sent in to investigate dangerous/unstable situations instead of humans
• Increased revnue within the private sector as the rate of product delivery, data collection surge

Hazards Drones Pose

At present, the highest use of (illegal) commercial drones is occurring among farmers, who are employing this technology to survey crops and aid in crop spraying/dusting. As efficient as this method might be, using drones to apply fertilizers and pesticides to crops could potentially result in cross contamination of an adjacent farmer’s crops or pollution of a waterway. A claim resulting from a loss occurring under these circumstances would not be covered under most all current liability or pollution policies.

Additional risks include:

• Invasion of privacy – capture of unlawful images (personal injury exposure)
• Hijacking – possible in cases of theft of goods (which drone may be carrying) and terrorism (cyber liability exposure)
• Threat to electrical grid as drones could interfere with power lines (property damage)

Coverage for Drones Under Commercial Insurance

Because the commercial general liability, property, and inland marine all have explicit aircraft exclusions for bodily injury or property damage losses arising out of the ownership, maintenance, or use of aircraft, currently no carriers partnering with R&R Insurance offer adequate coverage for drones . However, this is expected to change when the U.S. Government more clearly defines their use in the private sector. As we become more familiar with the legal standing of drones, insurance carriers and brokers will adapt to placing this risk.

In the future, some areas of coverage may include:

• First—party marine or hull insurance to cover the drone itself and its accompanying parts
• ISO is in the process of formulating new endorsements for the CGL and umbrella/excess liability policies to cover commercial drone exposures. A target release date for these endorsements has been set for June of 2015.
• An increase in carriers offering aircraft coverage specifically tailored to cover drones on their own policy

As technology continually evolves and the landscape of industry changes, R&R Insurance is uniquely positioned to navigate these shifts. The strong bonds our agency has built with various carriers in the industry allow us to be at the forefront of offering our insureds this coverage as it rolls out. If you have specific questions or concerns regarding drones and commercial insurance coverage, please contact one of our knowledgeable licensed agents!