R&R Insurance Blog

Pollution liability policies are only for contractors involved in environmental or pollution cleanup … or so goes the common perception in the construction industry.

The truth is a trade contractor without a pollution policy actually has a serious coverage gap when it comes to mold, bacteria, asbestos, silica, and lead.

Insurance carriers, always adverse to risk, write General liability policies with exclusions specifically for the aforementioned substances. It would instead be the Contractor’s Pollution Liability policy picking up the tab for bodily injury and property damage claims involving these often overlooked pollution conditions. 

Just about every contractor has some exposure to these elements:

• Plumbers have exposures to category 3 water (the water in drain pipes), mold, and bacteria. When the plumber’s work goes wrong, water damage caused by leaking pipes can lead to mold growth. A claim from a bystander alleging his quality of life was impaired due to the bacteria-abundant “category 3 water” would be excluded from a general liability policy.
• HVAC Contractors need worry about mold, bacteria, and legionella. Condensation in HVAC systems generally is the culprit in mold/legionella issues. Should your company have installed an HVAC system with too much humidity resulting in mold, claims arising out of the bodily injury (or even claims from the mere worry of bodily injury) would be excluded from a general liability policy.
• Roofing Contractors have exposure to mold, lead, and asbestos. Working on older buildings increases the chance of lead and asbestos exposure. Even a simple defect in the installation or repair of a roof could cause a large pollution related loss – i.e. a leaky roof resulting in mold growth. Costs associated with locating and removing mold can be extensive as the structure needs to be thoroughly inspected.
• Electricians are not exempt either from pollution liability and have similar exposure to mold, lead, and asbestos. Imagine a contractor running wire above a ceiling and stepping on a sprinkler pipe hidden by insulation. Should water damage result in mold growth, a general liability policy would not be your go-to. Like a roofer, work on older buildings increases the chances of lead and asbestos exposure.

Some Insurance carriers offer limited scope pollution endorsements. These endorsements do not compare in scope of coverage to a properly designed contractors pollution liability policy. After a loss, it’s too late to find out if a limited scope pollution endorsement provides enough coverage.

Should you have any further questions on potential coverage gaps in your current policy, talk to your Commercial Insurance Agent or shoot me an email.

Over the years, R&R Insurance has designed a proven 7-step method to successfully manage workers compensation programs. Our Professional Services have become experts in analyzing medical reserve dollars and can clearly articulate how insurance companies determine the numbers. By knowing market trends, carrier calculations, and your own unique situation, there are dollars to gain.

Wisconsin is one of the top 2 states in the country with the highest medical costs. Nearly 25 years ago, medical costs were 40% of work comp claims. Today, medical claims average 75% of total work comp claims. To put things into perspective, below are average rates based on five insurance carriers:

• Meniscus tear: $30,000 - $40,000
• Knee replacement: $60,000 - $100,000
• ACL repair: $45,000 - $55,000

This shift in costs can be directly correlated to several things:

• Healthcare uncertainty in last 10 years
• Affordable Care Act
• Shifting costs in workers compensation
• Lack of fee schedule in Wisconsin
• Diagnostics
• Actuarial pressures

So what can companies do to start minimizing medical only work comp claims? One of the more effective solutions is the integration of safety and wellness (or what R&R calls WellCompForLife). By cohesively utilizing these committees, companies are able to collectively share resources and ultimately reduce the total insurance spend.  By creating a behavioral change, employees will remain healthy and money will be added back to the bottom line.

To learn more about R&R's proven model, contact a member of our Professional Services.

Deadline approaching: employers have until July 1, 2018 to submit their OSHA 300 log data electronically directly to OSHA.

• Companies with 20-249 employees and in select NAICS codes (primarily construction and manufacturing) need to submit their OSHA 300 data by July 1, 2018 for their 2017 OSHA 300 log totals. 

“Covered establishments with 250 or more employees are only required to provide their 2017 Form 300A summary data. OSHA is not accepting Form 300 and 301 information at this time. OSHA will issue a notice of proposed rulemaking (NPRM) to reconsider, revise, or remove provisions of the "Improve Tracking of Workplace Injury" rule, including the collection of the Forms 300/301 data.

Covered establishments with 20-249 employees must electronically submit information from OSHA Form 300A." – www.osha.gov

• Reporting should be completed via the OSHA website.
• If you're unsure whether or not your company needs to submit data, check the select list of NAICS codes.

How can we help?

The world of OSHA reporting can be complex and confusing, specifically when it comes to electronic reporting. R&R’s Professional Services team can help you navigate not only when to have your 300 submitted, but also what should be included on the log.  Many companies actually over-report injuries on their 300 log which results in inflated incident or Frequency rates.

We invite you to listen to a previously recorded webinar regarding OSHA 300 hosted by John Brengosz. For additional information and resources contact Safety@rrins.com.

On June 19, 2018, the Department of Labor (DOL) released a final rule that gives small businesses more freedom to join together as a single group to purchase health insurance in the large group market or to self-insure. These benefit arrangements are called association health plans (AHPs). The final rule allows working owners without other employees, such as sole proprietors and other self-employed individuals, to join AHPs.

The final rule allows employers to join together to form an AHP that is a single ERISA plan if either of the following requirements is satisfied:

• The employers are in the same trade, industry, line of business or profession; or
• The employers have a principal place of business within a region that does not exceed boundaries of the same state or the same metropolitan area (even if the metropolitan area includes more than one state).

Most AHPs will not be subject to the Affordable Care Act’s requirement to include Essential Health Benefits (EHB), which requires small group plans to cover a core set of 10 major items and services, such as mental health care, maternity and newborn care, prescription drugs and emergency services. Most AHPs will also be exempt from the ACA’s rating restrictions for the small group market, which means that AHPs may base premiums on factors such as age, industry and gender. The final rule requires AHPs to comply with certain consumer protections and anti-discrimination protections that apply to the large group market (learn more).

R&R will continue to keep you informed as we monitor developing guidance regarding AHPs and other benefits matters at the federal and state levels. For a more complete understanding of the new AHP rule, click here to read more.

According to the National Safety Council (NSC), June is National Safety Month and the focus is on reducing the leading causes of injury and death at work, on the road, and in our homes and communities. Throughout the month, the NSC will be providing weekly materials centered around the following topics:

How is your organization taking part in National Safety Month? Contact safety@rrins.com for additional resources.

On May 30^th President Trump signed into law the “Right to Try” legislation.  This new law gives terminally ill patients the right to use experimental medications that have not yet been approved by the Food and Drug Administration. 

New pharmaceuticals brought to market must complete three phases of clinical trials that often take years to complete.  The first phase of trials requires a company to prove the drug is safe for humans and that the drug itself will not poison the patient.  Phase 1 trials are often conducted on as few as 30 patients.  The later clinical trials that supersede Phase 1, determine whether the drug is effective at treating the condition for which it is intended without problematic side effects.

The new “Right to Try” law allows a physician to administer a medication that has only cleared Phase 1 clinical trials.  These medications would still be considered experimental and not covered by health insurance.  Both the drug manufacturer and physician would be exempt from liability as a result of the trial medication’s failure to perform.

This legislation was developed for individuals that are suffering from terminal conditions such as amyotrophic lateral scleroses (ALS) for which there are promising treatments in the midst of the approval process. 

For more information, contact a KnowledgeBroker in our Employee Benefits Practice.

To learn more about the moving parts that make up pharmacy and what you can do as a plan sponsor to address the cost, attend R&R's upcoming Prescription Drug Seminar.

On May 9, 2018, the Departments of Health and Human Service and the Treasury notified officials in Wisconsin that their application for a state innovation waiver under Section 1332 of the Affordable Care Act (ACA) was complete. The Departments will accept public comment on the waiver application until June 8, 2018 and approve or deny the application within 180 days.

Wisconsin proposes to develop and implement a state-based reinsurance program—the Wisconsin Healthcare Stability Plan (WIHSP)—for its individual insurance market. WIHSP, if approved, would begin in the 2019 plan year and reduce premiums by 10.6 percent (relative to what premiums would have been in the absence of the waiver). Wisconsin estimates a federal pass-through rate of 83 percent. Of the overall $200 million program, the federal government is expected to contribute about $166 million and state funds are expected to account for about $34 million.

Stay tuned as developments progress.

Through R&R's partnership with the Waukesha County Business Alliance, we are proud to support 'Careers Uncovered,' a program aimed at aligning education to high-growth industry pathways. R&R is actively engaged in assisting employees in attracting and retaining top talent.

This new program allows Waukesha County educators the opportunity to visit a local company in one of the largest growing career pathways: healthcare, information technology, construction and manufacturing.

Experiences through the program's events will include:

• General information about the company and career pathways available in the industry
• Tours of the company that include networking opportunities with employees from all areas of business operations
• Round-table discussions with industry leaders.
• Educators working together to reflect and put together an action plan to apply the knowledge they gained to assist with the academic and career planning process.

'Careers Uncovered' supports educators in a handful of ways:

• Gain first hand knowledge of what careers in high growth industries look like in 2018 and see how classroom content and skills are visible in industry settings
• Enhance classroom curriculum with real-world career connections and examples
• Identify career pathways within the industries to assist students in career and college readiness planning, helping students make educated choices for their futures
• Connect with industry leaders to foster mutually beneficial partnerships

To learn more about upcoming 'Careers Uncovered' events, or for additional information, we invite you to contact the Waukesha County Business Alliance.

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 newest valued clients.

Jason and Susan are a successful couple in their early 40’s, with two young children.  They have two autos and a new home in Colgate, WI.  They said they had a good relationship with their previous agent, however during a discussion with their wealth manager realized that they hadn’t had a coverage review in quite some time.  During our initial 30 minute meeting at Jason’s office, we discovered some major coverage deficiencies:  unfortunately a vehicle that had been traded in a few months ago and replaced with a newer vehicle was not accurately updated on their auto policy, leaving the vehicle uninsured.  While that issue was quickly remedied, we also significantly reduced their risk exposure while decreasing their total premium 20% by rebalancing their program as follows:

Savings Opportunities:

• Incorporate an association discount related to Susan’s profession.
• Correct an error on their prior policy related to an auto claim: they were being charged for an “at-fault” accident, despite being rear-ended two years ago.
• Add a valuable discount for having a central alarm in their home.

Program Improvements:

• Decrease their homeowner’s deductible – including wind/hail – from $4,000 to $1,000.
• Add full value replacement cost on their home.
• Add personal injury protection.
• Despite having a recognizable name in the community, they did not have a personal umbrella. The cost to add $1 million of coverage was just $260 annually.  $5 million? Just $500 more.

*Client names have been changed to maintain anonymity.

While this time of year brings sunshine and warmer temps, it also comes with the potential of tornadoes and severe weather. Homeowners, renters, business and vehicle owners can find themselves in a financially challenging situation following a spring storm if they haven't checked their insurance coverage carefully.

An article from Property Casualty 360, provides a checklist of best practices for protecting your assets during this season of storms.

1. Verify your home is insured for its current value.
2. Find out what kind of home insurance policy you have.
3. Find out if you have a specific deductible in the event of a tornado or windstorm.
4. Understand the claims process before you have to make a claim.
5. Does your policy have any special limits or policy features?
6. Prepare an inventory of the contents in your home, including contents in additional structures like tool or garden sheds.
7. Find out what kind of coverage you have if there is a power failure.
8. Find out what your limit is for Additional Living Expenses (ALE) and how you can expect the coverage to work.
9. Make sure your car insurance includes comprehensive coverage, for damage such as hail, falling objects and windstorms.
10. Ask if you have coverage for a rental car if your car needs repairs.
11. If you have a vehicle in storage, make sure you haven't forgotten about coverage while it's there.
12. If you sustain storm damage, contact your insurer as soon as possible and start the claims filing process. For customers of R&R, we recommend adding our CSR24 phone number, as well as the phone number for your insurance carrier to your cell phone. This will ensure you have information at your fingertips should an emergency arise. Feel free to contact your Personal Lines agent for assistance!

For more information about properly protecting your family and the assets you've worked so hard to acquire, contact a member of our Personal Lines team.