R&R Insurance Blog

This article recently appeared in Public School Risk Institute's Risk Central, written by Paul Timm. He offers an excellent list of questions at the end for administrators to consider in the prevention of another tragedy.

School Safety: Establishing Separation Policies and Procedures Can Save Lives
Paul Timm - March 03, 2011

Less than 30 days after the tragic shooting in January at a school in Omaha, Neb. – where a suspended high school student killed an administrator who had earlier disciplined him – another school administrator was shot and killed in Northern California.

Just like in Nebraska, the perpetrator – a custodian who had just been fired – was able to return to the elementary school and access the office of the administrator who had delivered the news of his dismissal.

In the first instance, the student actually signed the visitor registry before being granted access to the assistant principal’s office. In the second instance, the custodian simply walked right into the principal’s office.

These tragic incidents could have been prevented. But it shouldn’t take a tragedy on campus to be the impetus for school administrators to address separation policies and practices.

If you’re a school administrator reading this article, here’s a question for you: Have you taken steps to review and develop separation policies? If not, let me implore you to learn from the tragedies in Nebraska, Northern California, and far too many other places where school shootings have occurred.

Unfortunately, most effective security measures follow extensive losses. But as we all know, before an incident happens is the time to be proactive.

To start, ask yourself some questions:

• What are your separation procedures and how quickly are they implemented once an employee or student is asked to leave?
• How can a locked vestibule at the main entrance, or visitor management software, discourage or even prevent this kind of incident?
• What is the role of local law enforcement during and after separation procedures?
• For how long must the person who has been asked to leave stay away from campus (cooling off period)?
• Under what circumstances or arrangements will they be permitted to return?
• What are your short- and long-term recovery plans should an incident like this occur at your facility?

Answering these questions are the first steps in preventing a tragedy on your campus.

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This article gives good advice on the subject of sexual molestation. This is a district's best defense for allegations in a particular molestation event. The best way that school personnel can protect themselves against harassment and sexual abuse allegations is to avoid scenarios with students that could be inappropriate, misunderstood or misinterpreted by students or staff.

Ten Tips to Preventing Sexual Harassment or Accusations For School District Staff

1. Never be alone with a student in your classroom, outside of the regular school day, without informing and/or seeking approval from your principal.
2. Never be alone with a student behind a closed door; keep your classroom door open during and after school or before school meetings. If your classroom does not have a window, ask for one to be installed or meet in a more open area.
3. Never make a habit of meeting students outside of school for a meal, coffee, soda, etc.
4. Never counsel your students in non-academic matters. Refer students who have questions, concerns, etc. to a guidance counselor, career counselor or social worker, etc.
5. Never transport students in your own vehicle or allow students to have access to your car.
6. Never give students hall passes to come to your classroom on non-school-related matters.
7. Never allow students to engage you in and do not offer advice in conversations regarding their romantic or sexual problems, concerns, fears, curiosities, etc. Don’t discuss your personal problems with students.
8. Never entertain students in your home unless it is a school-sponsored activity. Always have other faculty present. Never suggest that a student come to your house alone or be dropped off at your home.
9. Never make sexual comments or gestures about a student’s body, and don’t tell sexual jokes or display sexually suggestive images, videos, etc. in the classroom.
10. Never put your hands on your student in a manner that a reasonable person could consider as inappropriate under the circumstances or suggests something sexual, intimate, physically pleasing, etc. Examples include brushing up against the body; rubbing shoulders, necks, backs; hugging; tickling; wrestling; spanking; etc.

A portion of this content was taken from PreventionLink.
District administrators should contact Bill Hattendorf with R&R Insurance for more information.

Dan Larsen, Coordinator of Facilities and Operations with West Allis-West Milwaukee School District wrote a synopsis of playground safety January issue of the WSSCA (Wisconsin School Safety Association) that is worth your read. He also offers a few valuable links to assist with your playground safety efforts.

This ties in nicely with the upcoming Playground Safety Seminar offered through Liberty Mutual Group and Indiana Insurance. The April seminar, held in Madison, WI, is taught by certified playground safety inspectors and is free for principals, facility managers, maintenance directors and others responsible for ensuring playground safety.

Contact a School Practice Group Knowledge Broker to sign up for the seminar! It's free!

Ken Balda, President of Quality Truck Care Center of Oshkosh, Wisconsin, describes how R&R's claims management process saved his company from what could have been a very large claim...

"For our garage package renewal last year we chose to go with R&R Insurance Services who represented American Hardware Mutual. Mike Obertin and Bill Katzfey put together the proposal and presented us with a solid package that appeared to best suit our needs. When I made my decision and spoke to Mike Obertin, I told him the most important thing for me was for them and the company to be there if, and when, a big claim were to happen. Well; their test came in short order when a substantial claim arose. R&R brought in one of their experts, Jerry Aman, to handle this difficult claim and he was able to work with the insurance companies involved to resolve the claim for us."

"Being in business has many risks and as business owners we tend to buy our insurance based on what we hear at the proposal and the price we are willing to pay. The people at R&R insurance services have shown me what a leading agency can do to better protect my business. I had not experienced a team of professionals coming together to partner with me and work so hard to protect us. The people at R&R are true professionals and I highly recommend them and would be open to sharing my experience. When you get a chance to receive a proposal from them it may be one of your better business opportunities; it was for me and my company. " - Ken J. Balda

Municipalities, public schools and anyone employing "public sector" employees must complete an OSHA 300 log. The deadline is March 1 each year for public sector employers. Additionally, they are required to annually complete form SBD-10710 which is the same information that is on the OSHA 300A form. Unlike OSHA that requires completion of the log by companies that employ 10 or more employees, the Wisconsin Department of Commerce makes no distinction. Whether municipalities have 1, 100 or 1,000 employees, the log must be completed.

Chances are, if you’ve had a total loss on your home due to a fire or storm, you're going to need to replace it. Hopefully you had Replacement Cost coverage on your homeowners policy.

If you are going through the rebuilding process and wonder why the rebuilding costs are 30-40% higher than new construction, here are 9 reasons that explain why it could be higher.

1. Extensive planning and matching of labor and materials required to build around an existing structure with partial losses.
2. Contractors specializing in reconstruction and restoration charge more for their expertise.
3. The use of hand tools, such as wheelbarrows and dollies rather than heavy equipment due to limited access created by surrounding buildings and landscaping.
4. The increased cost of dwelling reconstruction is comparable to rebuilding an automobile part by part. The labor and materials are more expensive when building a single home versus a tract home. The labor and materials for rebuilding an automobile part by part are more expensive than a mass produced car.
5. Labor and material shortagesdue to supply and demand, especially in the aftermath of a catastrophe. Good examples are the fires in northern California some years back, and some of the recent tornadoes in Wisconsin.
6. Older home construction such as plaster walls and custom woodwork. It’s often difficult to even find craftsmen that still do this type of work.
7. Rebuilding to code. The requirements and expenses associated with updating the structure to meet current building ordinances. For example, new electrical codes often are stricter and will require heavier wiring and additional electrical services. All municipalities will do inspections.
8. Demolition and debris removal. While new home construction normally begins on open site with perhaps some brush removal and grading, rebuilding begins with a partially or totally destroyed structure occupying a building site with trees, plantings, driveways, sidewalks and other structures that have to worked around. Imagine the cost and extent of debris removal after a major fire or a tornado.
9. Economy of scale. When contractors have many homes under construction at once, materials can be purchased in large quantities and work can be scheduled for the most efficient use of carpenters, plumbers, electricians, and other tradesmen.

If you are a homeowner and don’t have Replacement Cost coverage on your homeowners policy, here’s why you should have it.

Wisconsin residents: Contact a knowledge broker at R&R Insurance today about insuring your home for it's true replacement cost.

According to a survey by Zogy International for MetLife Auto and Home, 31% of homeowners don’t know how much their home is insured for. Not only do we not know how much it’s insured for, most don’t understand that there are two very different coverage scenarios: Market Value and Replacement Value. In recent years with the home market decline and plummeting home market values, Market Value policies have become more common. As well, deeply discounted homeowners’ policies leave a lot of coverage on the table, coverage that could mean the difference of tens to hundreds of thousands of dollars.

The following definitions of Market Value and Replacement Cost will help to ensure that you can have a knowledgeable conversation with your insurance agent about the coverage for your home and obtain the proper coverage you deserve.

Market Value Policies
Some insurance companies will offer what is called a Market Value type of policy. It is also known as a “Functional Replacement Cost” or “Modified Loss Settlement”. Market Value is the amount a buyer would pay for a home, including the land regardless of how much it would cost to rebuild it. Many factors enter into the Market Value of a home; a desirable neighborhood, the condition of the home, scenic views, quality of the school district, weather pattern, size of the lot, etc. Market Value policies were generally only used for older, very well maintained homes where the cost to rebuild them was far, far greater than the market value.

Market Value policies affect the loss settlement on a homeowners policy. Every company has a different definition of what a Market Value policy will cover; but in general the coverage will provide the homeowner who has a partial loss with repairs that will be done on a basis of “like kind and quality”, which simply means repair or replacement will be done with commonly available materials and methods (so drywall in place of plaster walls for example). The company will pay only up to the amount of coverage stated on the policy.

Be careful when considering such coverage and be sure to discuss the coverage in detail with your insurance agent. Make sure that you understand the loss settlement thoroughly to make sure that this is the right type of policy for you.

Replacement Cost Policies
Replacement cost is the cost to actually rebuild your home. It is not the home’s purchase price less the value of the land, the outstanding amount owed on the mortgage loan, or the assessment for taxing purposes. Replacement costs will include the material (lumber, roofing shingles, siding material, carpet, drywall, etc), the labor costs, site supervision, architect’s services, the contractor’s profit and overhead, and the foundation. Keep in mind that changes in building codes may prohibit rebuilding on the current foundation.

There are several ways to obtain a replacement cost estimate on your home. Building contractors or professional replacement cost appraisers are a good source for obtaining the estimated replacement cost of your home. Estimates from these sources should reflect your home’s features, like upgraded bathrooms and kitchens (granite, custom cabinets, built in appliances), finished basements, specialty rooms, custom molding, built-in bookshelves, arched and specialty windows, and many other unique features. If you are unable to obtain a detailed estimate from these sources, your independent insurance agent can discuss other options for estimating the replacement of your home.

If and when you do renovations or additions to your home, be sure to let your agent know, as this may change the replacement cost of your home. It’s the homeowner’s responsibility to make sure the home is insured for full replacement cost.

At R&R Insurance, we recommend to all of our personal lines customers that they insure their home for at least 100% of it’s replacement cost. Get an estimate for the cost to rebuild the home and then insure your home for that amount! For most homeowners, insuring at the correct coverage amount will have a minimal affect on the homeowners insurance premium. Wisconsin residents: Contact us for a quote today! We have dozens of markets eager to write your homeowners insurance.

This is a fantastic quick read from Kenneth S Trump posted on District Administration in September, 2010. One of particular interest for us - being a trusted advisor for so many schools in Wisconsin - the comment about non-traditional partners. Your insurance agency should most definitely be a part of these conversations. At R&R Insurance we have an in-house resource center dedicated to improving safety as well as connections with external resources that our district clients utilize - our clients are right on track with this!

From Kenneth Trump's article:
School budgets are tight, but there are still many things school leaders can do to keep schools safe.

1) The five-minute safety rule. Take five minutes at every faculty meeting to discuss one topic from your school's safety or crisis plan.

2) Diversify drills. Conduct lockdown drills during nontraditional times such as lunch periods, during student arrival, and just prior to dismissal. Block exits (unannounced) during fire drills to teach students and staff to think on their feet. Lock down one section of your school while evacuating another area during the same drill.

3) Engage students. Draw students into school safety plans through student-leader group discussions, poster contests and increasing awareness of drills. Train students not to open exterior doors for strangers during the school day.

4) Reach out to nontraditional partners. Work with your county emergency management agency (EMA) to update crisis plans, participate in drills with first-responders, and collaborate on joint applications for security grants.

5) Hold mini-tabletop exercises. Build abbreviated tabletop scenarios into faculty meetings and district wide principal meetings several times during each school year.

6) Conduct safety roundtables. Add an agenda item to district principal meetings.

Contact Bill Hattendorf - R&R's School Practice Group Leader about your school district today!

Cybercrime is real and it's only a question of time before your business feels its effect. Any business that accepts credit card payments, utilizes social networking, has a web site, stores personal information on its employees, conducts business on the internet or is using technology to conduct and advance their business is at risk. This risk can be significant and is most likely uninsured.

In an article published by Rueters news service on March 24, 2010, Inside a Global Cybercrime Ring, they tell the story of Innovative Marketing Ukraine. This company employed hundreds of computer geeks, most of them putting themselves through college, crammed into three floors of an office building churning out code at a frenzied pace. They were creating some of the world’s most pernicious and profitable computer viruses. In a rare victory in the battle against cybercrime, the company closed down last year after the US Federal Trade Commission filed a lawsuit seeking its disbandment in US federal court. However, it is estimated that in 2008 Innovative Marketing had revenues of $180 million selling programs in two dozen countries.

Being a victim of a security breach will take most businesses by surprise. In fact, most small to medium size businesses convince themselves that they will fall under the radar of cyber criminals. The reality is that most are at a greater risk since they usually lack the resources and finances to implement and maintain adequate security measures. They are also frequently lax when it comes to enforcing security protocols within their organization. Having a disaster plan to respond to a breach is rare but may be one of the most important policies for a business to have readily available.

Responding to a security breach can be expensive and may, in fact, drive some businesses to the brink of bankruptcy. Unbudgeted and unforeseen expenses will include the forensic expense to determine the cause and scope of the breach, notification expenses, credit monitoring, call centers, identity restoration and public relations.

Do not expect traditional property and liability policies to respond to cyber losses either to your business or to your customers. Losses of this type were not anticipated at the time these policies were drafted and therefore are not covered under either the definition of property or cause of loss. Many insurers are specifically excluding cyber losses so that it is clear that the insurance company will not respond to these claims.

Here are 5 tips you could do for your business right now to reduce your risk of being a victim of cybercrime:

1. Develop a security policy and communicate/educate users on your security policy
2. Implement sound password and encryption
3. Utilize security software and conduct penetration tests
4. Develop a network breach disaster plan
5. Ensure that you have the proper insurance coverage to protect you in case of a security breech

As part of a risk evaluation at R&R insurance we will work with your organization to assess your risk and design an insurance program to address the exposures of your business operations. The insurance industry has approximately 200 different policy forms available to protect businesses. It is important to understand your risk and how your insurance carrier will respond on your behalf when cyber criminals strike. Contact a knowledgebroker today!