R&R Insurance Blog

For the 2nd year in a row, R&R Insurance has been ranked the "Top Bonding and Insurance Firm" by The Daily Reporter readers! 

Annually, The Daily Reporter has surveyed it's readers on number of questions related to Commercial construction categories (best abatement, best material supplier, best scaffolding company, etc.) as well as general business questions.  Participants wrote in company names for their top votes. 

Thank you to everyone who took the time to vote!

Large or small, all businesses are a target for cyber-attacks. Whether it’s a fraudulent email being sent from someone disguised as the COO, or an intercepted wire transfer - businesses must continue to be diligent in preventing these situations from occurring within their four walls.

With the help of experienced professionals, we’ve developed a list of tips to help your organization avoid fraud activity (such as forged checks or stolen cards) and business email compromise.

Payments & Checks

• Convert all paper based payments to electronic. Checks contain a company’s entire banking identity, so the more they can be avoided, the better.
• Keep checks in a locked drawer that only specific employees have access to.
  • If using signature stamps, keep these in a locked drawer as well - but separate from any checks.
• Monitor check orders and limit those who handle the checks.
• Review and update the signature cards at your bank annually (at a minimum).
• Never pre-sign checks – under any circumstance.
• Implement ACH filters and Positive Pay.
• Use dual authorization for ACH and wire transactions.
• Review transactions before they’re sent to the bank.

IT Systems

• Work with your IT department or vendor to ensure safeguards are in place.
• Flag all outside emails as “external.”
• Be aware of fraudulent emails (typos, poor grammar, inconsistencies in email addresses, etc.).
• Change passwords frequently and don’t have your internet browser “save passwords.”

Employee Processes

• Provide education to employees on fraud and fraud prevention.
• Have a social media policy in place to limit what is being used in the workplace and while connected to the company’s wi-fi network.
• Have a process in place for when employee involved with Accounting leave the organization.
  • Alert your bank of employees who’ve left that had banking responsibilities.
  • Change passwords that previous employees had access to.

For more information about having the right insurance in place to properly protect your business, contact a KnowledgeBroker at R&R Insurance or take the free cyber risk calculator below.

 

Sources:
Westbury Bank
Association for Financial Professionals
BVS Performance Solutions
JP Morgan Chase

A consistent challenge for majority of businesses is how to effectively attract and retain employees. With millennials making up the majority of the workforce, businesses must alter their tactics in order to stay ahead.

Like years before it, 2018 was no exception to the rising increases of health insurance coverage.  Since 2017, single coverage insurance premiums have increased by 3% while family coverage has increased by 5%. Nowadays, employees get their pick of affordable health care coverage options that best suit their lifestyle. That being said, employers must be able to differentiate themselves if they want to attract and secure talented employees.

A successful tactic for retaining employees is taking a look at the needs of the employee and stacking them against financial realities. The outcome of this is to offer meaningful benefits and cover majority of their costs.

Meaningful Benefits: Benefits employees actually want and will use.

Securing Talent

Turnover is a reality that all businesses have to cope with. But poor retention is something you can change. To do this you have to know and have these three things:

• Know the reasons behind why employees have decided to part from your company

• Data: have analytics and information for why people leave as well as why people are staying

• Analyze: be able to put all of the information gathered so you can implement effective tactics and change the future outcome

Amongst the information gathered, you want to design strategies that will better your goal of securing talent. Look for patterns and brainstorm ways that you can break that particular trend (ex. Why people are leaving?).

Understanding the Millennial Mindset

As mentioned earlier, millennials are flooding today’s workforce. This makes them the prime target for your attracting efforts. Medical, dental and vision insurance alone are not going to have millennials flocking to your company. So how do you start from here? You need to understand the mindset of a millennial. They put choice and affordability at the top of their list. The main goal in all of this is to enhance lives by reducing financial burdens.

To learn more about how to effectively attract and retain employees, click here or contact a KnowledgeBroker for more information.

Caution is often the reaction I get when discussing Cyber Insurance to construction executives in Wisconsin. From their perspective it would be a nice policy to have should the North Koreans focus their slave hacking force on a plumber in Sheboygan. The resulting ransom of 200 bitcoin for their $200 laptop seems a laughable prospect to a field that generally isn’t tech reliant. The truth, however, is that contractors are a growing target for hackers, but fear isn’t the only reason for a contractor to have Cyber Insurance.

So is greed.

Newly mandated contracts are forcing the conversation of Cyber Insurance between owners and contractors. On October 31, 2018 the American Institute of Architects (AIA) requires the use of their new 2017-revised agreement documents and to toss the old 2007 versions. Among the most standard forms are basic contract agreement between owners and contractors: A101, A102, and A103. All three of those forms have a new section dedicated to Cyber Insurance.

The relevant language begins in the from at section A.2.5.1. This segment encourages the owner to purchase Cyber Security Insurance for any loss or data breach should such an event happen on the job. This represents an opportunity for a contractor to sell the fact that they have 3^rd party Cyber Insurance and can cover such a breach. Alternatively this could be a threat should the contractor have no Cyber Insurance and potentially lose out on a bid to a competitor who has said coverage.

Why was Cyber Insurance language inserted in this part of the contract? The AIA believes there is a growing threat of electronic data loss to owners after several real world examples surfaced where negligent contractors were at fault.

In 2013 an HVAC contractor in Pennsylvania was working at a Target retail store. An employee of the HVAC contractor opened a virus laced email. This email stole the identification and password of the contractor and was able to infiltrate Target’s vendor portal. From there the criminals were able to gain access to Target’s internal network. The result was the 5^th largest cyber-attack in history and 70 million compromised credit cards.

Beyond encouraging owners to attain Cyber Insurance, Forms A101-3 present easy opportunities for owners to require Cyber Insurance from contractors. Further along in the contracts (section A.3.3.2.6) the owner is given a segment to fill in additional coverages a contractors is required to possess on the job. In the real world we are starting to see contracts requiring a Cyber policy– often with high limits too.

More than just a threat, Cyber Insurance represents an opportunity for contractors. Having a policy ahead of a big job not only protects your company in case of a breach, but also gives the sales or marketing department extra ammunition to make the winning offer. 

Not all Cyber policies are the same. There is a major difference between a first and third party coverage. Contact an agent to work out the best Cyber policy for your business.

 

We have seen an uptick in requests from business owners to add GPS tracking units to their fleet.  GPS tracking systems improve the odds of vehicle recovery from theft, encourages safe driving, and promote regularly scheduled vehicle maintenance.

But can they save money on insurance?  Yes.  Insurance companies are always assessing risks, so businesses with better driver records and a well maintained fleet could see decreases in their commercial auto insurance.  As an independent insurance agency, we have access to a variety of insurance companies which offer cost assistance.  For your individual situation, additional savings may apply - talk to your KnowledgeBroker about a custom savings plan for your organization.

Thinking of adding GPS trackers to your fleet?

We queried several clients and developed the list below.  While it is nowhere all-inclusive, it is a great place to start your search of looking for a GPS fleet provider.

• AT&T Fleet Complete (note: must change telephone carrier to AT&T and you have the option of hard wiring the unit into the truck, known as AT&T Asset Tracker, or accessing via the employee’s cell phone…but the cell phone option allows the employee to turn it off) https://att.fleetcomplete.com/
• Azuga https://www.azuga.com/
• Carmine https://carmine.io/
• Fleetdaddy https://www.fleetdaddy.com/
• Fleetup https://fleetup.com/
• Geotab https://www.geotab.com/
• JJ Keller https://www.jjkeller.com/
• Kinesis https://www.kinesisfleet.com/us/
• Omnitracs https://www.omnitracs.com/
• Peoplenet (by Trimble) 715.919.2851 https://mobility.trimble.com/
• Samsara https://www.samsara.com/
• Smartlogix (skybiz) 571.388.4570 or 877.275.9248 http://support.smartlogixinc.com/
• Spireon https://carmine.io/
• Telectrac navman https://drive.teletracnavman.com/
• Telematics563.4026 http://www.telematicsgps.com/
• Verizon connect https://www.verizonconnect.com/

Additional Fleet Safety Resources

• Fleet Safety (non-DOT) [on-demand webinar]
• Negligent Entrustment of a Vehicle [article]
• Electronic Logging Devices Mandate - Implementation and Requirements [article]
• Fleet Safety - Can you sustain a $24M verdict? [article]

Have questions if GPS trackers can help your business?  We can help: safety@rrins.com.

Many employee benefits are subject to annual dollar limits that are periodically updated for inflation, such as HSAs, health FSAs, and transportation fringe benefit plans. This Compliance Overview includes a chart of the inflation-adjusted limits for 2019. Although some of the limits will remain the same, many of the limits increase for 2019.

The IRS typically announces the dollar limits that will apply for the next calendar year well in advance of the beginning of that year to give employers time to update their plan designs and make sure their plan administration will be consistent with the new limits.

Contact a Knowledge Broker for more information.

Effective October 16, 2018, OSHA launched a "Site-Specific Targeting (SST) inspection program".  The goal of the program is to ensure that employers provide safe and healthful workplaces by directing enforcement resources to those workplaces with the highest rates of injuries and illness.  Read the full OSHA notice here

Targeted Employers or Workplaces for SST Inspection Program:

• All industries EXCLUDING construction, schools, or municipalities
• 20+ employees
• Injury and illness information submitted calendar year 2016 under 29 CFR 1904.41

How can you prepare for a potential OSHA visit?

1. Awareness: do your company have a plan if OSHA would come knocking? 
   • See OSHA inspection fact sheet
2. Benchmark: how does your company's injury and illness rates compare to industry peers?  Are you a red flag for OSHA? 
   • See comparisons from Bureau of Labor Statistics (BLS)
3. Review applicable OSHA compliance programs compared to your company practices.
   • See OSHA inspection fact sheet
   • See OSHA Required Safety Health Programs
   • Review frequently cited OSHA standards as reported by NAICS code

Preparing for any type of OSHA audit takes commitment from leadership.  The best success are organizations with safety teams to champion safety 24/7.  R&R Insurance can help support safety personnel with self-audits, policy review, training content, and much more.  Start the conversation with an email: safety@rrins.com.

 

Whether we're ready for it or not, winter weather is upon us. And with colder temps comes an obvious increase in the use of fireplaces. For many of us, our fireplaces/chimneys haven't been touched in months. However, chimneys account for 75% of home heating fires - meaning homeowners should actively maintain and follow the necessary upkeep.

Property Casualty 360 provides the following tips to prevent chimney fires in your home.

1. Have your chimney inspected and cleaned at least once a year by a professional, and more than that if creosote builds up on the chimney walls more rapidly.
2. Consider installing a stainless steel liner that will withstand even the highest temperatures and will keep the embers contained.
3. Watch out for soot buildup. Soot is softer than creosote, but is also flammable and should be cleaned up regularly. 
4. Between the professional inspections / cleanings, be sure to check and monitor your wood-burning fireplace for signs of buildup or other problems.
5. Clean the interior of your fireplace, including the floor, regularly. Sweep or vacuum up cold ashes.
6. Your chimney has a cap on the top of it with open sides (usually covered in mesh to keep rain, birds, squirrels, and debris out). Make sure this cap is regularly inspected and replaced when necessary.
7. Check the interior of your fireplace for creosote buildup. It is flammable, therefore too much buildup is a fire hazard and should be cleaned away with a creosote remover as soon as possible. 
8. Anytime there is smoke indoors from your fireplace, troubleshoot and immediately correct any problems you find. Possible causes are a dirty chimney, soot or creosote buildup, other debris, a sample that isn't open or fully opened, or wood not building completely.
9. To improve your fireplace's efficiency, you should also consider installing heat-proof glass doors to protect against heat loss and a fan or blower to direct heat into the room.
10. If possible, burn hardwoods like oak, maple, ash, and birch. These woods burn hot and long, are cleaner to handle, and have less pitched sap. They also tend to leave less creosote buildup but can be more expensive.

Looking for additional safety tips for your home? Contact a KnowledgeBroker at R&R Insurance.

In simple terms, Trade Credit Insurance protects B2B companies or sellers of goods and services against bad debt, including insolvency, slow payment, and political risks. When these issues arise, they can be detrimental to a business. In fact, approximately 82% of bankruptcies are triggered by cash flow problems caused by issues like customer non-payment. In addition, accounts receivables typically represent more than 40% of a company's assets, and one in ten invoices becomes delinquent.

When should businesses consider Trade Credit Insurance?

Trade Credit Insurance applies to businesses of all sizes and in a variety of industries. Trusted Choice states that companies that sell goods and services on credit terms rather than requiring payment up front are exposed to the risk of nonpayment and should consider this coverage. In addition, companies that work with international exports have an increased risk and should take this insurance into account as well.

While there are alternatives to Trade Credit Insurance, they may not be the best option for businesses. According to James Daly, CEO and President of Euler Hermes, the main alternative is self-insurance, a practice many US organizations opt for. Businesses can put a reserve on their balance sheet to cover any bad debt that may occur over the year. However as Daly states, "rather than have capital in your balance sheet doing nothing but waiting for bad debt, why not purchase Trade Credit Insurance and then invest that excess capital into growth or new products?"

How can Trade Credit Insurance benefit your business?

Trade credit solutions can support sales growth while reducing trade risk and giving you the ability to:

• Avoid catastrophic bad debt losses
• Expand sales to new and existing customer with less risk
• Secure better borrowing terms with a lender
• Reduce bad debt reserves
• Enhance credit department efficiencies and results

The value of Trade Credit protection extends well beyond the insurance policy.  A key benefit is the extensive financial database available from partners of R&R such as Euler-Hermes, the world's largest Trade Credit provider. The information available at their fingertips provides proactive notifications and protection from adverse financial issues that could be developing with your key business partners. In addition, their data is an excellent evaluation tool when making decisions on partnering or prospecting potential growth partners. 

As a partner of premier trade credit insurers, R&R can assist your company with properly protecting its largest asset - accounts receivable. Contact a KnowledgeBroker for more information.

As of 2018, the videos below are ranked as the most popular by OSHA and the US Department of Labor.

Whether you're looking to train employees, or just share knowledge with members of your organization - these videos provide insight into serious safety topics.

1. Five Ways to Prevent Workplace Falls
2. Stop Silicosis (Inhalation of Silica Dust)
3. Excavation in Construction: Trenching
4. OSHA Heat Illness Prevention
5. Falls in Construction: Floor Openings

For more information on any of these topics, contact safety@rrins.com.