R&R Insurance Blog

Uninsured motorist coverage, in Wisconsin, provides protection for bodily injury caused by a motorist who is not insured. This coverage allows you to collect from your own insurance company as if it provided liability coverage for the negligent and uninsured driver. Underinsured motorist coverage, in Wisconsin, provides protection for bodily injury sustained by you when a motorist who is not sufficiently insured negligently causes an accident.
Why carry UM/UIM coverage:

1. The chance of being hit by a negligent uninsured or underinsured motorist in Wisconsin is approximately 15%.

2. UM and UIM coverage is broad and could contain benefits for you and your family members' injuries sustained in your own covered auto, autoss you do not own, and as pedestrians.

3. The cost is reasonable.

Kent Wainscott of WISN12 reported on September 4th that local home owners have been seeing huge increases in their home insurance policy rates - especially those placed with direct writers such as American Family Insurance, Allstate and State Farm. Direct writers like these have national exposures like huge forest fires, Tornado Alley or hurricanes. They only represent themselves, and therefore generally pass on the hardship to everyone in their book of business.

Here in Wisconsin, we have many options to combat this huge increase in home insurance premiums by direct writers like American Family Insurance. The major difference with an independent agent like R&R Insurance is that we are not a “one size fit’s all”. We have numerous carriers with local or regional exposure - thus less risk for the carrier and less costly for you.

At R&R Insurance we'll find the best combination of coverage and the best value for your insurance dollar. Wisconsin residents, if you are seeing increases in your home and auto policies that are too heavy to bare, we can help! Click on the Get a Quote button, fill out a few fields and you're on your way to better prices for your home and auto policy.

If you prefer to talk on the phone, we can have a knowledgebroker give you a call - just click on the Start A Call button to let us know. We'll be there with affordable coverage that most likely is better than what you were getting with the direct writer.

While cyber insurance policies have been available in the market for years, I find that confusion still reigns as to what these policies cover. This confusion is warranted. The number of different policies available for cyber liability coverage along with an increasing number of endorsements that can be added to policies makes data breach coverage harder and harder to understand.

Here are the 7 Key elements to cyber liability coverage that you should look for in a cyber liability policy:

1. Forensic Expenses:
   You have determined that data has been compromised and need to investigate what happened, how it happened, and what information was accessed. The expenses to hire an outside forensic team for discovery is covered.
2. Legal Expenses:
   You will need legal representation in order to determine the scope of the federal and state notification requirement breaches. You will also need legal counsel to defend you in the event a suit is filed against you.
3. Notification Expenses:
   These expenses can include postage, paper, printing, call centers, etc.
4. Regulatory Fines and Penalties:
   What more can I say? The government will want, and get, their pound of flesh.
5. Credit Monitoring and ID Theft Repair:
   While not legally required, it is generally agreed that offering these services to the affected parties will reduce potential legal liability and is considered the right thing to do.
6. Public Relations Expenses:
   The manner in which the breach is reported to the media is crucial to restoring your reputation and maintaining your clients, vendors, business associates, partners, and patients.
7. Liability and Defense Costs:
   It's not uncommon for class action lawsuits to be filed against you following a breach. You will need legal representation which can be of your own choice or appointed by the carrier. Either way, coverage is available for these costs.

Most policies will include some coverage for all of these components. The limits, deductibles, coverage triggers, and scope of coverage can vary greatly from one carrier to the next. At R&R we believe that securing the right policy for your business is a process. We can help you understand your risks and exposures and craft a policy that meets your expectations.

Related articles:
Average Cost of Corporate Data Breach is $7.2 Million
Transfer Your Cyber Liability Exposure

For more information on how to protect your company against the cost of a data breach or anything regarding cyber liability, contact a knowledgebroker.

Employers have a 1 in 3 chance of being the target of an employment related action for every 100 employees. Private and small companies are even more vulnerable as many have less HR resources, think of themselves as “family”, and generally pay less attention to potential risk areas. In 2012 the EEOC received more complaints than any previous year. They have increased their budget by 20% to increase staff to handle the pure volume of complaints being filed. Regulators have become more aggressive in enforcement at both the federal and local level.

The top four complaints being filed against employers:

1. Age related discrimination
2. Retaliation (at an all-time high)
3. Sexual Harassment (account for 25-30% of all complaints)
4. Wage and Hour

It is important for employers to realize that the EEOC is looking at every charge for a pattern of behavior. A single complaint can easily balloon into a much bigger problem. Recently, St. Mary’s Hospital in Madison, WI agreed to settle a class action lawsuit alleging that the hospital failed to pay 1,400 nurses for meal breaks when they had to stay at the hospital on call.

In the broad context of wage and hour issues, allegations include misclassification of employees as exempt to avoid overtime pay (i.e. sales personnel), not paying for the time spent donning or removing of gear, booting up computers, preparing for the work day, etc.. and the use of mobile devices to access voice mail or email off hours without compensation. The 4^th district Court Appeals ruled recently that Tyson Foods must pay back wages for the time spent putting on and taking off gear that can include hair nets, hard hats, shoe covers, safety glasses and frocks. The back wages could top more than $1 million.

Looking into the future, employers should be aware of the potential claims concerning obesity and corporate wellness programs. The American Medical Association recently classified obesity as a disease. Is this a precursor to becoming a protected class? The challenge for employers is being able to show that an applicant or employee cannot perform the job duties rather than the impact that an obese person can have on health insurance, sick time, and productivity. With regard to wellness programs employers are advised to be careful that individual’s privacy is protected, that they are not being judged /monitored and that employment decisions are not being influenced by an employee opting out of participation or following recommendations.

The average cost to defend against an employment action brought by a single plaintiff that is ultimately dismissed is $150,000. Costs for complex and class actions can skyrocket and have a huge financial impact to any employer regardless of industry. Employment Practices Liability insurance should be a part of the insurance program for all employers. Taking time to understand the policy, the obligations of both the employer and carrier, and what to do in the event of a claim is time well spent. Odds of becoming the target of an employment action are on the rise.

For more information about Employment Practices Liability Insurance for your Wisconsin company, contact a knowledgebroker.

Related topics:
Corporate wellness programs

The IRS has issued a revised Form 720 (Quarterly Federal Excise Tax) that now includes a section for reporting the Patient-Centered Outcomes Research Institute (PCORI) research fees, also called the Comparative Effectiveness Research (CER) fees. The PCORI fee is listed in Part II of the form, IRS No. 133.

The first due date of these research fees (for some employers) was July 31, 2013.

The Affordable Care Act (ACA) includes a "research fee" that plan sponsors, including HRA plan sponsors, must pay on an annual basis. The research fee is referred to as the Patient-Centered Outcomes Research Institute (PCORI), or Comparative Effectiveness Research (CER) fee.

The ACA imposes this fee on insured plans and self-insured health plans, including HRAs. The research fee is temporary; it applies to plan years ending on or after October 1, 2012 and before October 1, 2019.

Applicable employers are required to report and pay the PCORI research fees annually via Form 720, due by July 31 of each year.

For more information about self-funding your health insurance plan, health care reform or basic employee benefits questions, contact knowledgebroker Les Kitzman.

Humans aren't the only ones facing skyrocketing healthcare costs. The price of veterinary service continues to rise which may make buying pet insurance worth the premiums.

There are 3 basic types of pet policies:

• Accidents only - average monthly premium $20
• Accidents and illnesses - average monthly premium $40
• Wellness (checkups) and accidents - average monthly premium $75

The best candidates for pet insurance may be owners of a pet that has a higher risk of getting hurt or sick, and minimal bankroll to spend on pet bills. It ends up being risk management against a serious accident or illness. If you are going to look into coverage for your pet, ask these questions when shopping:

1. What is and isn't covered?
2. What are the co-insurance charges? Are you able to choose the deductible you want?
3. What are the coverage limits per year, incident, and lifetime?
4. How are pre-existing conditions handled?
5. How and when are claims reimbursed?

While you're in charge of deciding what options are best for your beloved pet, let us help you review what is best for your home and auto insurance protection by contacting us.

Do you ever find yourself forgetting things that you want to remember? Try a couple of these tricks and let us know how they work.

Remember Names - Look, snap, and listen to their name. Too often, we don’t pay attention. Now make a mental picture (snap!) of their name and face, and mentally connect them.

Get Everything on Your List - Make up a story using the items you need — the more absurd and dramatic, the better!

Recall Online Passwords - Create a template that you personalize for each site. For instance, you might start with a word-number combo that’s meaningful to you, then tack on the initials of the website that needs a password. Example: CoCo was your first pet, and you got him when you were 11 and you're logging into R&R: rrCoco11

Never Miss a Birthday - Use technology! Facebook will send you an email every weekend reminding you of coming birthdays: Go to the "Accounts Notification" page to opt in. Also, while you're logged in like R&R!

When was your last insurance review? Contact a R&R knowledgebroker and we will review it to make sure nothing was forgotten!

The causes of absenteeism are varied, and so is the impact on companies - from decreased productivity to a reduction in profit and morale.

Some employers are finding better ways to manage employee absence. Research shows a direct correlation between these five major employer practices and a better absence management program:

1. A full return-to-work (RTW) program, starting with a written RTW policy and a list of alternative duties for light duty clearance.
2. Referral process for employees to health management programs.
3. A central leave-reporting system for STD and FMLA.
4. Detailed reporting for disability and FMLA usage patterns, costs etc.
5. Use the same resource for STD, FMLA and other benefit programs

7 Positive Outcomes of an Absence Management Program

1. Enhanced productivity
2. Reduction in lost-time claims
3. Decreased overall absenteeism
4. Direct cost reduction
5. Better return-to-work ratios
6. Lower workers compensation premiums
7. Improved employee morale

Employers are recognizing the importance of managing absences, but most have a long way to go in managing their overall presenteeism program.

Implementing strategies to help workers stay healthy is critical to controlling costs. At R&R, we take wellness to a whole new level. Wellness programs will increase the health and longevity of employees and their families –which means that businesses can have a lot of 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 our upcoming Work Comp Seminar to learn more!

One of the many advantages of working with an independent insurance agency like R&R Insurance is that we represent many different insurance companies. We are not a "one size fits all", or "call 1-800 for no real service or no real relationships” type of agency. The benefit to our clients is that we find the right company for your exact needs.

Two of the many great companies we represent are West Bend Mutual Insurance and Secura Insurance. They offer discounts from 5-18% depending upon the group! West Bend Mutual and Secura already have some pretty attractive rates without the discounts! Below is a list of the groups that qualify for these discounts. Wisconsin residents, please contact us for the eligibility requirements for your specific group.

West Bend Mutual Group Discounts:

Alumni Association Paid Member
American Council of Engineering
American Probation and Parole
Architects
Associated Builders and Contractors
Certified and/or Licensed Professional Engineers
Certified Public Accountants
Chiropractors
Classic Car Club Member
Commercial Partners
Community Bankers of Wisconsin
Condo Unit Owners
Credit Union Employee Association
Dental Association
Educators
Insurance or Financial Professionals
International Brotherhood of Electrical Workers
Law Enforcement Association
Mercy Health System
Midwest Dental
National Association of Women Business Owners
Pharmacists
Physicians Health Network
Post Graduate Degree Individuals
Prime Rewards
Robert W. Baird & Company
State Bar of Wisconsin
Vetrinarians
West Bend Mutual Insurance Agents
West Bend Mutual Associaties
Wisconsin Auto Collision Technicians
Wisconsin Auotmotive Aftermarket Association
Wisconsin Funeral Directors Association
Wisconsin Green Industry Federation
Wisconsin Optometric Association

Secura Insurance Group Discounts:

Architect
Attorney
CPA Association
Dentist
Doctor
Educator
Engineer
Nurse
Pharmacist
Veterinarian

Building a workplace culture of wellness is one of the best things employers can do to boost employee health – and to improve the bottom line.

When employers and workers join forces to battle high healthcare costs, everyone wins. Organizations across the U.S. are making incredible strides to achieve higher productivity, lower absenteeism and reduce claims. People who take a more active role in managing their own health enjoy the payoffs, too, in quality of life and cost savings.

Research shows that health risks are directly related to costs. As the risks increase, so do the costs. Heart disease, obesity and other costly conditions can be prevented when people engage in healthy behaviors both short term and long term.

Wellness Statistics:

• For each employee who loses low-risk status, health costs go up $350/year. If they regain their low-risk status, they save $150/year.
• High BMI individuals cost an average of $2326 (1996 dollars) more in annual health claims compared to healthy BMI individuals.
• High-risk health plan members cost approximately $2000 over the average for annual medical claims.
• High-risk employees (5+ risk factors) between ages 35-65 have medical claim costs of $3007-$4182 higher/year compared to low-risk employees in the same age group.

The most effective way to increase the proportion of employees in the low-risk category is to keep them from developing risk factors.

Encouraging physical activity and balanced nutrition, along with other healthy behaviors, is central to any health promotion program. Employees spend a significant portion of their waking hours on the job. Employers can significantly influence lifestyles by developing worksite programs to maintain healthy behaviors.

Creating a healthy workplace can involve 4 primary areas:

1. Environment – Healthy food, smoke-free facility, physical activity and injury prevention policies.
2. Programs – Health promotions, recreation programs, employee assistance programs and coaching.
3. Culture – Incentive systems, role models, education.
4. Policies – Medical coverage for preventive care, flextime, guidelines to monitor and reduce stress.

A review of 42 published studies on worksite health promotion programs shows these averages:

• 28% reduction in sick leave absenteeism
• 26% reduction in health costs
• 30% reduction in workers’ compensation and disability management claim costs
• $5.93 –to-$1 savings-to-cost ratio

Implementing strategies to help workers stay healthy is critical to controlling costs. At R&R, we take wellness to a whole new level. Wellness programs will increase the health and longevity of employees and their families –which means that businesses can have a lot of 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!

For more information about WellCompForLife, about self-funding your health insurance plan, health care reform or basic employee benefits questions, contact knowledgebroker Laura Stehno.