R&R Insurance Blog

In CNA Insurance's 2016 "Claim Report", they recap the statistics behind dental claims for the year.  Below are a few that stuck out to me - all the more reason that we make sure your Practice is properly covered. 

1. The average indemnity paid  for general practitioners was $83,120
2. The average indemnity payment for specialists was $125,651; excluding oral surgeons the average was $98,626
3. The top 4 procedures associated with claims are root canals, surgical extractions, surgical placement of implants and crowns
4. 23% of closed claims allege treatment failure, resulting in a total paid indemnity of $17,892,090
5. Dentists who participated in the risk management education programs had claim costs 20% below the overall average.

In an effort to align with national insurance rating, the Wisconsin Commissioner of Insurance is eliminating the “Anniversary Rating Date” effective May 1, 2017.  What does this mean for Wisconsin employers?  You no longer need to wait for your effective date to take advantage of new rates.

While the rate is one piece of the puzzle, other elements that play a vital role:

• How does changing your effective date affect your MOD?
• What are the short term policy cancellation penalties?
• What are the possible dividend implications?

While some of these answers remain to be seen, below are excerpts from the IIAW of Wisconsin in a recent article by Bernard Rosauer, President of the WCRB.

Anniversary Rating Date (ARD) Endorsement Withdrawal

The ARD change no longer requires the use of prior policy effective dates to govern the application of rates, rules and forms for workers compensation.

Without the ARD rule, nothing would prohibit an employer from cancelling a policy to take advantage of a recent rate filing decrease. The short rate penalty exists which acts as a deterrent to an employer who cancels. That penalty would likely substantially reduce, or complete eliminate, any “gains” to be had by the cancelling early to take advantage of the new, lower rates. Also, Wisconsin statute contains specific prohibitions for a carrier to cancel a policy except for issues such as nonpayment of premium, breach of the policy terms, fraud, and misrepresentation.

How Will the New ARD Rule Be Implemented?

The WCRB’s standard is to file changes on a new and renewal basis with a specific implementation date. For this particular item, this means that the ARD is eliminated for new renewal, and written policies effective May 1, 2017 and later.

Example 1

A policy is effective April 30, 2017 (one day before ARD is eliminated) and has an ARD of August 1, 2017. That August 1, 2017 ARD would still apply. When the renewal policy is written April 30, 2018, the rates in effect as of that policy effective date would apply for the full term of the policy.

Example 2

A policy is effective September 1, 2016. The rates effective October 1, 2015 apply until the September 1, 2017 renewal. The policy is cancelled and rewritten effective May 1, 2017. No ARD applies and the rates effective October 1, 2016 are applicable to the May 1, 2017 rewritten policy.

With complex and convoluted changes such as the ARD withdrawal, it is critical you have an agent with the analytical tools and capabilities to provide a full scope of the financial implications that can result from simply changing your effective date. R&R’s Work Comp Division is at the forefront of this change and can provide a thorough analysis to support your insurance decisions.

For more information, download the Anniversary Rating Date Road Map or contact your Knowledgebroker at R&R.

To illustrate the benefits of rebalancing an insurance program to strengthen wealth protection and better manage expenses, the following example presents a before-and-after comparison for one of our valued clients.

Steve and Julia are a couple in their late 50’s whose children have started promising professional careers and live independently.  They have two vehicles and live in a newly constructed home in Waukesha, WI.  They also have a second home in Minocqua, WI with a boat and boat house.  Both Steve and Julia serve on various boards and are active volunteers in their community.  Their previous insurance plan exhibited many of the typical patterns of overpaying and underinsuring for their homeowner, auto, valuables, boat and umbrella liability coverages.  Steve and Julia significantly improved their financial security while reducing their total premium 18% by rebalancing their program as follows:

Savings Opportunities:

• Move coverage from a national company to a regional company, to take advantage of the homeowners pricing in an area that is not subjected to the impact of coastal claims.
• Raise the deductible on their primary home to $1000, to match the deductible on their seasonal.
• Take advantage of loss prevention credits for a heat loss detection system and an automatic standby generator.
• Incorporate a 13% association discount related to Julia’s profession.

Coverage Improvements:

• Acquire full replacement cost coverage for their primary and seasonal homes with no cap.
• Increase “other structures” coverage in order to fully protect the boat house from loss.
• Combine their existing boatowners policy with their new package policy to improve coverage, which also reduces expenses and paperwork.
• Add identity theft, special personal property, and increase rental reimbursement coverage.

Contact Brandy Enger, Private Client Executive, to learn more about properly protecting your most valuable assets.

*Client names have been changed to maintain anonymity.

If someone asked you to create a list of every possession in your home today, how many items do you think you’d remember? Think about just one room. Can you envision what’s in every drawer, hanging on each wall, or sitting on the shelves?

Under the unfortunate circumstance your home is destroyed, your insurance company will ask for a complete home inventory.  Your current insurance contract most likely reads something along the lines of: “Prepare an inventory of damaged personal property showing the quantity, description, actual cash value and amount of loss. Attach all bills, receipts and related documents that justify the figures in the inventory.” In order for you to receive payment to buy new items, you will be required to complete a home inventory.

Home inventories can be completed in the form of a printed list, through photos and video, or even digitally via apps. West Bend Mutual provides the following checklist to help you through the process:

• The more detailed your inventory, the better. That being said, don’t make it too complicated. An easy way to do a home inventory is go from room to room, photographing or videotaping the contents of each room, then jotting down descriptions and details. Don’t forget your closets, cupboards, and drawers. And be sure to include the basement and garage.

• Your inventory should have:
  • Brand names and serial numbers of products;
  • Digital photographs, preferably stored on a disc or flash drive; and
  • Receipts. If you don't save receipts, it’s a good time to start.

• More expensive items like jewelry, collections, furs, and other valuables are limited in the amount covered. If the value of these kinds of items exceeds the limits, be sure to insure them separately. You may need appraisals to do this.  Once you have an inventory and appraisals, store them in a safe deposit box away from home.

• Keep your inventory current. Update it every year, especially if you buy, sell, or give away items. Failing to keep your inventory updated could result in not enough (or too much) insurance coverage.

• Once you’ve got your inventory (whatever form it takes), make sure to protect it. Store it in a safety deposit box, in a strong safe or lockbox, on a cloud storage service, at work, or with a friend. Just make sure it’ll survive if there’s ever major damage to your home. Remember that’s what it’s there for!

Having your home inventory complete prior to a loss is highly recommended. The devastation of losing your home and possessions is unthinkable and can cause an incredible amount of stress in itself. Ideally you’ll never need to file a homeowner's insurance claim. However, an updated inventory can make the process faster and easier, and help you get the most from your insurance. It also provides you with peace of mind, knowing all of your possessions will be accounted for.

Contact a KnowledgeBroker for more information.

Learn more about how to protect your organization from the most commonly cited OSHA standards and frequently misunderstood safety practices.

Our complimentary seminars and webinars will breakdown requirements, FAQs. and provide materials to aid in your compliance. From cyber security and incident investigation, to the OSHA 300 Log and machine gaurding, we'll provide valuable information to help protect your business.

Follow the links below for more information on our:

• Webinars

Its hard to believe that 2016 has come and gone. With another year in the books, we took a look back at the top 5 most popular R&R articles of last year.

We hope you have a happy, healthy new year and look forward to serving you throughout 2017!

Follow the links below to view these articles.

1) Preparing for Changes to the Wisconsin Workers Compensation Act

2) Update on Wisconsin Cell Phone Laws While Driving 

3) Workers Compensation Audit Noncompliance Charge | Effective January 1, 2017

4) OSHA | New Electronic Recordkeeping Requirements

5) Criminal Hackers Targeting Payroll Data

As much as we all love the holidays, there can be a lot of stress that comes along with the joy and celebration. One of the stressors for many of us is driving, especially after a holiday party or celebration.

We found a helpful article on ‘Preventing a Holiday DUI,’ which provides great reminders on staying safe when behind the wheel. One of the important highlights is what to do if you find yourself on the road with an impaired driver. Here are a few great suggestions:

• Do not attempt to personally stop the driver.
• Give yourself plenty of distance between you and the impaired driver.
• Don’t ever try to pass a driver in this condition.
• Slow down, pull over, and get completely out of the way if you need to.
• If a car is coming head-on towards you, move to the shoulder, stop and flash your lights.

We hope you have a happy, healthy and safe holiday season with friends and family.

The Wisconsin Compensation Rating Bureau is now requiring a mandatory audit noncompliance charge (ANC). Effective January 1, 2017 any insured who does not comply with a workers compensation audit will be billed an additional two times the estimated workers compensation premium.

For Example:

$50,000 Estimated Annual Premium

+$100,000 Audit Noncompliance Charge

_______________________________________

$150,000 Total Amount Due

The intent of the charge is to provide uniformity in assessing a penalty. It is also an incentive for insureds to cooperate with the premium audit as required by the policy contract. Improved compliance with the audit process will lead to increased accuracy, as well as ensure rate accuracy and sufficiency.

• The ANC is not a premium surcharge. It is premium and is subject to premium tax.
• The ANC endorsement is not optional and is mandatory on all Wisconsin workers compensation insurance policies.
• The ANC endorsement will be treated the same as the WI Law Endorsement and the WI Cancellation and Non-renewal endorsement.
• There are no changes to the Wisconsin cancellation rate. Current term policies cannot be cancelled for nonpayment of the audit bill.

While compliance with the work comp audit has always been important, 2017 will prove to be more important than ever. For additional information on the ANC, contact a Knowledge Broker at R&R Insurance.

Without inland marine coverage, your business’s personal property is not covered if it is being transported off site. A business’s personal property can include: machinery, equipment, stock, leased property, furniture, and any other property owned and used by the business.

For example, if you are a contractor and you transport tools and equipment between the workplace and job site, you will need an inland marine policy that covers contractor equipment.  Or, if you are a photographer and shoot on location, the photography equipment will need to be covered on an inland marine form. Basically, if you use equipment that does not stay at your premises, you may need to include it on an inland marine policy.

A business auto policy covers your vehicles, but what about mobile equipment such as a cherry picker, bulldozer, or even a golf cart? If you have mobile equipment that is not subject to compulsory insurance laws and used off public roads, it is not considered an auto. Therefore, you will need to insure that liability under your general liability policy and also insure it on an inland marine policy to cover any physical damage.

How can you determine what to insure?  Keep your agent informed. Let us at R&R know what you need insured and what you use it for. We will make sure that all your property has the appropriate coverage.

For more coverage information, contact a knowledge broker.

The Consumer Product Safety Commission (CPSC) estimates there are 5,740 hospital emergency room injuries a year caused by snow blowers. The CPSC reports 19 deaths since 1992 from using snow blowers. Five deaths were caused by carbon monoxide poisoning because someone left the engine running in an enclosed area.

The American Society for Surgery of the Hand, reminds us that accidents can happen when using a snow blower.

Injury Profile:

• Average age: 44 years
• Sex: Male
• 90% of injuries: dominant hand
• Amputations of tips of fingers
• Middle finger most commonly injured

Injury Causes:

• Snow clogging the exit chute of the machine
• Not noticing that the impeller blades are still rotating even though the machine is off
• Operator attempts to clean the clogged exit chute with hands
• Hands connect with the rotating blades, resulting in severe injury snow blowers are safe if used properly

If Your Snow Blower Jams:

• Turn it OFF!
• Disengage clutch.
• Wait five seconds after shutting machine off to allow impeller blades to stop rotating.
• ALWAYS use a stick or broom handle to clear impacted snow.
• NEVER put your hand down chute or around blades.
• Keep all shields in place. DO NOT REMOVE the safety devices on the machine.
• Keep hands and feet away from all moving parts.
• Keep a clear head, concentrate
• DO NOT DRINK before using your snow blower!

Three Snow Blower Safety Tips:

• Never put your hands inside the snow blower chute for any reason. If the chute becomes clogged with snow (or another object), turn it off, wait for all moving parts to come to a complete stop and then clear the chute with a stick. It may be frigid outside but don't risk not shutting off your machine to clear an object, because once you clear the obstruction, the parts will start to move again!
• Dress properly for the job. Be sure to wear adequate winter clothing and footwear that will improve footing on slippery surfaces. Wear safety glasses, and avoid any loose fitting clothing that could get caught in moving parts. Be careful of long hair. Wear ear plugs or other ear protection - they are loud!
• Remove debris and other obstacles (door mats, toys, decorations) the snow blower might strike or throw, as they may cause injury or damage to the snow blower.

Wisconsin residents, contact an R&R knowledgebroker about your current home and auto coverage, or any questions you might have for us at R&R Insurance!