R&R Insurance Blog

President Trump signed into law on March 18, 2020 the Families First Coronavirus Response Act requiring employers with 500 or fewer employees to provide emergency paid sick leave and family leave to employees dealing with the impact of COVID-19. Below is a high-level summary of these two components of the Act, which become effective as of April 1, 2020:

	Emergency Paid Sick Leave Act	Emergency Family and Medical Leave Expansion Act (EFMLEA)
What it Does	Applicable employers will be required to provide full-time employees with 10 days (80 hours) of paid sick leave when the employee cannot work or telework for reasons related to COVID-19. Part-time employees are also entitled to this benefit based on the average hours worked over a 2-week period.  Below are the allowable leave reasons: Employee is subject to a federal, state or local quarantine or isolation order related to COVID-19 Employee has been advised by a health care provider to self-quarantine due to concerns related to COVID-19 Employee is experiencing symptoms of COVID-19 and seeking a medical diagnosis Employee is caring for an individual subject to quarantine or isolation order, or who has been advised by a health care provider to self-quarantine. Employee is caring for their own child whose school or place of care has closed due to COVID-19 concerns Employee is experiencing any other substantially similar condition specified by the Secretary of Health and Humana Services in consultation with the Secretary of the Treasury and the Secretary of Labor.	Applicable employers will be required to provide up to 12 weeks of job-protected family leave for employees who have been employed for at least 30 days and are unable to work or telework due to a need for leave to care for their child if schools are closed or their daycares are unavailable resulting from COVID-19. The first 10 days are unpaid and thereafter the benefit must replace at least two-thirds of the employee’s wages up to a maximum of $200 per day.   Employers are also required to restore employees to their same or equivalent position, and if not available, have ongoing obligation for 1-year to contact impacted employee if such position becomes available (exception for employers with less than 25 employees).
Who is Covered	Applies to employers with fewer than 500 employees	Applies to employers with fewer than 500 employees
Eligibility	All employees, regardless of length of employment are eligible for the leave.	This leave benefit covers employees who have been working for at least 30 calendar days.
Rate of Pay	Employers must pay employees their regular rate of pay if the employee is taking leave for a reason related to their own symptoms of, or exposure to, COVID-19. Employees who are taking leave to care for family members are only entitled to be paid at two-thirds of their regular rate.   Daily and total maximum limits apply see “Appendix A” for details. Special calculation rules apply for part-time employees.	A qualifying employee will not be eligible for pay from the employer for the first ten (10) days unless the employee has available accrued vacation, personal or sick leave which can be substituted for the otherwise unpaid time. An employer is not permitted to require the substitution of accrued paid leave which the employee may have for the 10 unpaid period. After the 10 day period, the employee will be eligible for pay from the employer equal to two-thirds of the employee’s regular rate of pay for the remainder of the available leave up to a maximum of $200 per day, or $10,000 total. Special calculation rules apply to part-time employees.
Employer Notice	Employers are required to post model notice of rights which the Department of Labor will be issuing by  March 25th, 2020.	None specified yet at this time.
Tax Credits	Each quarter, employers subject to the requirement are entitled to a fully refundable tax credit equal to 100 percent of the qualified paid sick leave wages paid by the employer	Each quarter, employers subject to the requirement are entitled to a fully refundable tax credit equal to 100 percent of the qualified paid Family and Medical Leave Act (FMLA) wages paid by the employer.
Exemptions	Employers of employees who are healthcare providers or emergency responders may elect to exclude such employees from eligibility for paid leave. Small businesses with fewer than 50 employees may qualify for exemption from the requirement to provide leave due to school closings or child care unavailability if the leave requirements would jeopardize the viability of the business as a going concern. An authorized officer of the business must determine that at least one of the three conditions described in the DOL’s FAQ is satisfied. Small businesses must still comply with all other allowable leave reasons stated above.	Employers of employees who are healthcare providers or emergency responders may elect to exclude such employees from eligibility for paid leave. Small businesses with fewer than 50 employees may qualify for exemption from the requirement to provide leave due to school closings or child care unavailability if the leave requirements would jeopardize the viability of the business as a going concern. An authorized officer of the business must determine that at least one of the three conditions described in the DOL’s FAQ is satisfied.
Effective Date	Goes into effect April 1, 2020 and will expire on December 31, 2020	Goes into effect April 1, 2020 and will expire on December 31, 2020
Enforcement	Eligible employers who violate the new paid sick leave law will be subject to penalties under the federal Fair Labor Standards Act.	The Department of Labor will enforce the new requirement to provide Public Health Emergency Leave under the FMLA Expansion Act.
Comments	For employers with existing leave policies, the paid sick leave allotment provided for under this act is in addition to whatever sick leave is already offered by employers.	As with other FMLA leave, Public Health Emergency Leave is job-protected leave. Employees have the right to return to their positions when their leave expires. However, that right to return is limited when covered employers with fewer than 25 employees must eliminate the position due to economic circumstances caused by the COVID-19 pandemic and there is no equivalent position available.

 

Compensation under the new paid sick leave law

Under the new paid sick leave law, employers must pay employees their regular rate of pay if the employee is taking leave for a reason related to their own symptoms of, or exposure to, COVID-19. Employees who are taking leave to care for family members are only entitled to be paid at two-thirds of their regular rate. Daily and total maximum limits apply, per the chart below:

Reason for leave	Daily pay rate/cap	Total pay cap
Quarantine or isolation order	Regular rate of pay up to a cap of $511	$5,110
Advice from health care provider to self-quarantine
Experiencing symptoms of COVID-19 and seeking a medical diagnosis
Caring for an individual subject to quarantine or isolation order, or who has been advised by a health care provider to self-quarantine	Two-thirds regular rate of pay, up to a cap of $200	$2,000
Caring for own child whose school or place of care has closed, or whose care provider is closed or unavailable
Experiencing other substantially similar condition specified by HHS

 

For an in depth look, read more here.

For more information and resources, visit MyKnowledgeBroker.com/Coronavirus-Resources-for-Businesses

 

Publish date: 3/20/20 - updated: 4/7/20

There will be few, if any businesses that will emerge from the COVID-19 pandemic without being impacted financially or operationally.  Safe to say, we are in uncharted waters right now as we deal with controlling COVID-19.

The personal health and safety of everyone is paramount and should be our focus right now.  Following the CDC guidance and directives from local, state and federal governments around these vital health protocols is critical to slowing the spread of COVID-19.

People are being asked to severely limit travel, not to eat, drink or gather in restaurants, sporting venues, bars, casinos, not to attend gatherings of over 10 people and all of these restrictive actions are stifling economic activity and negatively impacting businesses of all kinds.  

Will my commercial insurance cover this loss of revenue and expenses?

• These claims are very fact-dependent and will have to be fully investigated by your insurance carrier, before any coverage commitments (acceptance or denial) can be made.
  • The cause of loss will be important. There are numerous causation scenarios, below is partial list of possibilities:
    • Government mandated shut down
    • Government restrictions, including travel, gatherings and curfews
    • A confirmed COVID-19 exposure on site, nearby, and/or in your geographic area
    • The imminent threat of COVID-19 exposure on site, nearby, and/or in your geographic area
    • A supplier fails to deliver product/services or comply with terms of a contract

•  

• You may receive a Reservation of Rights letter, and/or asked to sign a Non-Waiver agreement by your insurance carrier(s).
  • This letter / form allows the insurance carrier to investigate the claim, without waiving any of their rights under the policy to deny coverage (if that is the conclusion) at a later date, when the investigation is complete. 

• Coverage positions (acceptance or denial of your claim) will all vary by the cause of loss, policy forms, endorsements, terms and conditions, and the insurance carrier.  There will be other factors that will be critical to the coverage decision as well.
  
  • There are no broad based statements to be made here. Each policy will have to be fully examined and evaluated, against the facts of the loss and the damages incurred.

There is momentum building for government assistance programs, such as; bridge loans, cash payments, reimbursements, extension of credit deadlines, tax relief provisions, extension of the April 15^th tax filing requirement and free virus-related medical care are among many options being discussed to assist business owners with liquidity issues and to provide incentives to continue to employ staff during this volatile time.  

Record Keeping for COVID-19 Claim Filing and Documentation

It will be important that our clients that suffer economic losses related to COVID-19, keep accurate records during this time. If there are insurance policy recoveries to be claimed and/or government programs to access for assistance, documentation of economic losses and expenses will be required.  

Here are some preparedness steps to take that can enable a smooth, efficient claim process with your insurance carrier:

• Organizing/documenting financial and/or property damages will be required
  1. Keep accurate business records around sales and sales declines from prior periods.  (Income statements, banking records, sales receipts/records)
  2. Keep accurate records around contract cancellations or non-performance, including communications between parties, if any
  3. Keep accurate business records around payroll and employment levels (reduced pay, reduced hours or reduced number of required employees)
  4. Keep an accurate accounting of inventory levels and any inventory that had to be discarded
  5. Keep accurate business records around expenses that are incurred to maintain and support the business to enable it get back up and running, in the event of a loss or partial loss

If you do want to submit a claim for damages, your insurance carrier website will include details on the most efficient way to report the claim. 

R&R Insurance can assist you in the claim process and will advocate on your behalf to ensure the proper determination of coverage is made.

The more organized your claim information and documentation is today, the easier it will be to determine actual losses, covered or uncovered damages later when this pandemic cycles through.  This information will also be useful if government assistance programs are created to help as well.   

For more information, visit MyKnowledgeBroker.com/Resources-for-Businesses

Posted: March 19, 2020

Also commonly referred to as "business interruption insurance", business income insurance covers lost income when your business must shut down due to a covered loss: fire, theft, wind.  Many business owners fail to think about how they would manage if a fire or other disaster damaged their business so they were temporarily out of work.  A few simple calculations can provide the information needed to purchase the proper coverage for an unforeseen loss.

Business Income protection is not like a $1,000 auto deductible.  The impact of BI is extremely important on the business.  A number of companies are out of business in 12-18mn due to a loss.  Many of these companies do not survive due to the financial loss incurred.We ask our customers: How was your BI coverage determined?  "Well, a while ago we had some formula..." or  "I have never filled out a Business Income worksheet..."

Many people think "oh no, the dreaded BI worksheet!"  But it doesn't need to be.  Many of our insurance company partners have a simple online application that will provide a single page summary.  We also have in-house experts that can help you identify the data needed and walk you through the process of completing the worksheet. 

Basic Business Income Worksheet Data Points

Business Income coverage includes, but is not limited to:

• Gross revenue minus non-continuing expense
• Cost of materials
• Ordinary payroll
• Coverage for anticipated duration of loss
• Extra-expense limit

90% of the time "agreed amount" is missed. Why is the agreed amount so important?  It waives the coinsurance clause on the specified property. As long as this endorsement is in effect, there would be no coinsurance penalty at the time of a claim.

Additional Consideration to Business Income Coverage: Extended Indemnity

Business Income coverage ends once a business is back to operating.  However for many companies, they are not operating at 100% on Day 1. Extended Indemnity will provide extra buffer until fully operating.

For example: after a business has been down for 6 months and they're able to begin operating but at 20%, the Business Income coverage ceases.  In steps Extended Indemnity to help cover the non-operating 80% until the business is fully up and running again at 100%.  Depending on the insurance company, this extra buffer range from 30 days, 90 days, 365 days, or beyond.

You've worked hard for all that you have.  Be sure to reduce your risk and protect your lost income due to unforeseen losses.

 

Eating a well-balanced diet is the key to maintaining a healthy body. Improving your diet, in fact, could help you live longer and reduce the chances of developing costly chronic diseases such as heart disease, stroke and diabetes.

The Academy of Nutrition and Dietetics encourages everyone to eat healthy. This includes the foods that you might eat at work. “Healthful eating habits shouldn’t stop once you get to work,” says registered dietitian nutritionist Jennifer Bruning.

Nearly 25% of employed adults consume foods and beverages at work at least once a week—items that often are high in calories and include refined grains, sugars and sodium, according to a study by the Center for Disease Control and Prevention (CDC) in 2019.

Below are a few tips for a healthier lifestyle:

• Plan out your meals ahead of time
• Bring your own lunch to work
• Eat the rainbow of fruits and vegetables
• Stick to correct portion sizes
• Carry a water bottle with you

Small changes can lead to improved health benefits!

For more information on how to maintain a healthier lifestyle, read here.

You can't open a publication these days without hearing about rising insurance prices.  As discouraging as this is to your wallet, perhaps some insight on WHY this is happening will make it a little more tolerable.

Pricing continues to be impacted by increased litigation around social events relating to #MeToo, cyber breaches, social media and safety.  According to a Q4 2019 Market Scout report,

• D&O increased 8.25%
• Commercial auto increased 8%
• Property prices rose 5.25%
• Excess liability rose an average of 5.5%
• Workers compensation decreased an average 1% in Q42019, continuing a downward trend for the year

The Wall Street Journal article, is citing several factors accounting for the rising prices:

• Several years of large catastrophe losses
  • The current price increases are partly due to hurricanes, wildfires, and other catastrophes of 2017 & 2018 that cost the global industry more than $200 billion
  • During periods without catastrophic claims, you'll generally see lower insurance prices.  Following large natural disasters or other big losses, you'll generally see a rise in prices or reduction of exposure to certain risks.
• Continued low interest rates
• Non-catastrophe claims
  • Property losses from building fires and mechanical breakdowns have increased
• Social-inflation have increased liability-insurance claims
  • There is a greater tendency to sue insurers and for juries to hand out higher rewards

What can be done?

The good news, according to Insurance Journal: you can take a proactive approach to gaining control over your risk management program.  By creating long-term plans it helps to see where to make investments in the overall risk - not just the rising cost of premium, but also risk improvements and funding higher deductibles for the long term.  Having the additional resources from a safety and loss control standpoint advising you along the way will help your overall strategic goals. 

In today's market, properly managing loss control and mitigating exposures can make the most impact in total cost of your risk management program.

Despite slight declines in accident rates, auto insurance rates have been on the rise for the past decade.  American car insurance rates have risen 29.6%, outpacing inflation and the increase in average car prices.

According to an article by Wired, a few culprits are to blame:

• Vehicle theft is rising
• Extreme weather, fueled by climate change, can destroy cars in a shorter amount of time
• Hurricane Harvey wrecked close to 1 million cars in 2017

The biggest culprit in rising auto insurance rates: the newer technology features within the cars themselves.

The reason: the sensors that power the systems make cars much more expensive to fix when they do crash.  Dent a steel bumper and a couple hits of a hammer will fix the issue.  Dent a bumper on a newer vehicle and it could mean repairing or replacing a camera, a radar, and ultrasonic sensors.  And then have everything calibrated!

Those who pay for blind spot warning, driving alertness monitoring, lane departure warning, night vision, or parking assistance systems may not actually save anything, depending on the insurance company.

Not to be overlooked, other leading causes of higher auto insurance costs:

1. Shift from halogen to carbon fiber.  It's lighter and stronger than steel or aluminum, but when damaged needs to be replaced.  In general, the cost of repairs has risen 5% to 6% annually since 2015, however frequency of crashes has dropped by 2% to 3%.  The gap explains the steep rise in rates.
2. Distracted driving. Smartphone use has risen from 35% to 81% in the past decade and have accounted for more than two-thirds of crashes.  Inattention behind the wheel has been blamed for the recent rise in traffic fatalities among pedestrians.  Insurance companies have responded by increasing rates for smartphone violations by as much as 23% year-over-year.

On the bright side, these higher rates may not last.  As mechanics learn to replace and calibrate sensors and as the prices of parts begin to fall, repairs should get cheaper.

Effective 2/1/2021, the Workers Compensation Rating Bureau (WCRB) will no longer issue courtesy postcard reminders to employers eligible to file for the Wisconsin Contractor's Premium Adjustment Program.

Read the full Circular Letter from the WCRB

WCRB will mail an orange WCPAP postcard notification to complete the WCPAP Online Application for one more renewal cycle (fiscal year 2020). 

Beginning with policies effective 7/1/2021 eligible employers should create their own reminders to complete their WCPAP Online Application every year. 

REMINDER: employers must submit a WCPAP Online Application every year, no less than 90 calendar days prior to the first day of the month of their worker’s compensation policy renewal.  The WPAP Online Application is updated every year on the evening of September 30th.  Therefore, you may complete this online application as soon as October 1st, regardless of your policy effective date.

Policies Expiring	WCPAP Online Application Deadline*
January	November 2
February	November 3
March	December 1
April	January 1
May	January 31
June	March 3
July	April 2
August	May 3
September	June 3
October	July 3
November	August 3
December	September 2

*Updated as of January 2020 - dates subject to change

 

In early January 2020 the Department of Homeland Security issued the following urgent bulletin concerning retaliatory cyber-attacks: https://www.dhs.gov/ntas/advisory/national-terrorism-advisory-system-bulletin-january-4-2020

There are no specific direct threats yet but, as mentioned, there is a significantly elevated risk and high likelihood of a Cyber-attack by Iran (a state sponsor of terrorism) in retaliation to recent events. 

While it is not likely that our customers in Wisconsin will be directly targeted, it is highly likely customers will be impacted by the contingent cyber exposures of a state sponsored retaliatory cyber-attack.   The likely impact would be because the major cloud and network systems our customers depend on would be down:

• Denial of service attacks
• Network interruption
• Contingent business income and sales loss

This is why a true cyber policy that contains coverage for all of this is more important than ever!   

We are being proactive and want to help now before a loss occurs!  

• Get a quote today and it can be done with a few quick questions: click here to request a quote answering 7 simple questions
• A true cyber insurance policy is not as expensive as you might think and covers not only direct cyber-attacks but contingent exposures around systems your company depends on.   
• One of our top carriers also features a reimbursement for upfront cyber defense costs, up to $3,000, on IT risk mitigation to help make IT systems safer and mitigate risk.  

We urge you to please contact Jason Navarro (Director of Cyber Crime) and/or complete the 7 step questionnaire so we can help implement an adequate cyber-program with you.  

This holiday season, you may find that online shopping is a convenient way to check items off your list. While shopping from the comfort of your couch has its benefits, have you considered the risks involved with having a package delivered to your front door? Package thieves, sometimes referred to as “package pirates”, are stealing millions of packages every year. According to a study done by C+R Research, 31% of individuals had a package stolen last holiday season. On average, stolen packages can be an expensive loss. According to a study by Ring last year, the median value of a stolen package was about $250. With the Holiday season among us and online shopping on the rise, you and your family may want to discuss some options to keep your gifts and deliveries safe. Here are a few tips for how to prevent a package theft from happening at your door step.

1. Outdoor Security Camera

   Installing a camera at your front door is a great way to provide piece of mind, and can deter a thief from attempting to steal your package. Doorbell camera systems such as Nest and Ring are user-friendly and easy to install. These home security systems will allow you to view a live stream of your home from your personal smart phone, so you always know who is knocking at your door. Most doorbell camera systems will notify you when activity is detected, so you’ll know exactly when your item is delivered (even if they don’t ring the doorbell!). Use this function to prevent a package theft by stopping at home to bring your item inside, or even teaming up with neighbors by asking them to hold your package temporarily.

2. Ship to Work or to Friend/Family’s Home

   For some individuals, stopping at home in the middle of the day might not be an option. A great alternative is to have your item shipped to your workplace. Speak to your manager and see what your company policy is- most employers understand that you spend most of your time at work therefore it may be acceptable to receive deliveries there. Sometimes workspace is limited though, so brainstorm people you know that are usually home during the day. Family members who are retired or friends that work from home would be great people to reach out to! The more the merrier when it comes to preventing package theft in our community.

3. Amazon Hub Locker or In-Store Pick Up

   If you are shopping on Amazon, there is now an option to ship packages under 20lbs to an Amazon Hub location. Instead of having your package shipped to a home or business, you can select a “Pickup Point” in your area and have your item shipped to a secured locker kiosk. These Kiosks are located in more than 900 cities and towns across the US! You can use an easy online locator tool to find one near you. They tend to be at neighborhood grocery stores, banks, pharmacy and other easy to access locations. You will receive an email when your item is delivered, and you must pick it up within 3 days of delivery. When you arrive for pick up, just enter your unique pick up code, retrieve your item from the locker, and you are good to go!
   
   Alternatively, if you are shopping at an online retailer other than Amazon, check to see if there is an “in store pick up” option. Insider tip: call the store directly if you do not see a “ship to store” option online. Often times, stores will offer free shipping when you ship to their location!

Online shopping has become a common part of our lives, and its safe to say its here to stay. That being said, porch theft has become all too common as well. Being aware of the risk is the first step to protecting your deliveries. Taking a few moments to consider the above tips may save you from being a part of the staggering porch theft statistic. We hope that these tips were helpful, and wish you have a very happy Holiday season!

On Friday, Nov. 15, 2019, the Trump administration released its final rule regarding hospital price transparency. This final rule will take effect January 1, 2021, a year later than originally proposed.

Hospitals will now be required to provide easily accessible billing information to patients. This means having all standard charges available online and in one single data file that can be “read by other computer systems,” according to a CMS press release.

Learn more here about the final rule released by the Centers for Medicare and Medicaid Services (CMS) regarding hospital price transparency.