R&R Insurance Blog

It’s an unfortunate fact that accidents happen – and it’s not uncommon for jury awards and out-of-court settlements to run into the millions.  While it’s difficult to pinpoint the monetary consequences of the risks you and your family take each day, are you certain your current liability insurance offers you enough protection?

For example, what if:

• You accidentally run a stop sign, causing a serious accident?
• The Amazon delivery person falls on your sidewalk and is seriously injured?
• You are sued for liable/slander for posting a seemingly harmless comment on-line?

If you are found to be legally responsible for injuring someone or damaging their property, without a personal umbrella, anything beyond the limits of your standard liability insurance coverage will come out of your own pocket.  A personal umbrella liability policy protects your personal assets – and future earnings – by kicking in when your standard liability coverage is exhausted.  Additionally, a Personal Umbrella will cover the cost of a legal defense if a suit is filed against you.

How Much Coverage Do I Need?

You’ll want to take into consideration not only your total personal assets but also your potential personal risks.  For example, does your profession or location of your home make you an easy target for a big settlement?  Do you have a busy lifestyle that puts you behind the wheel frequently?  Coverage starts at $1 million, and it’s not uncommon to see limits as high as $10 million. 

How Much Does Coverage Cost?

Additional liability insurance is inexpensive when compared to the added coverage you gain.  A $1 million umbrella policy typically costs less than $300 a year, and increases by $50-$100 annually for each million thereafter.

2017 Data Breach Forecast Report from Experian:

"Of the potential sources for a breach, electronic health records (EHR) are likely to be primary target for attackers. The portable nature of his information and the number of different entities and end-points that need access to them mean the potential for them to touch a vulnerable computer system is high. While there may be significant protections in place to secure them in transit, it only takes one compromised or outdated system to lead to exposure. Further as more healthcare institutions deploy new mobile applications, it's possible that they will introduce new vulnerabilities that will also be attractive targets for attackers."

"Ransomware attacks may also move from just locking systems to outright stealing information to either sell or leverage for identity theft. Additionally, with the recent Office of Civil Rights (OCR) guidance classifying ransomware attacks as requiring consumer notification, we are likely to hear about a larger number of these types of cases when compared to other sectors".

Think your organization is immune?  Think again:

• Global malware attack hits Wisconsin health care providers
• 43K affected in Wisconsin data breach
• 93,000 patient records exposed by Pennsylvania provider
• Vendor error causes major patient record leak at New York hospital
• ...and the list goes on

What is your plan when the inevitable happens to your organization?

Contact your knoweldgebroker for a free analysis of your cyber insurance policy and disaster recovery plan.

This week Lloyd’s of London released a report that stated “a major, global cyber attack could trigger an average of $53 billion of economic losses, a figure on par with a catastrophic natural disaster such as Superstorm Sandy in 2012.” So far in 2017 The WannaCry and Petya/NotPetya attacks affected hundreds of thousands of computers in over 150 countries in an alarmingly rapid period of time.

As reported in The Hill, the Petya malware, which first hit the Ukraine, spread to other areas of Europe and the US. The malware forced a hospital in West Virginia to replace its entire computer system, disrupted operations in Merck, FedEx and Cadbury, as well as stalled operations at the Port of Los Angeles.

Security experts agree that the attacks will continue and will impact more US businesses. And not just giant corporations are at risk. One of the commonalities in these attacks is that they were spread through unsupported software. Many businesses were impacted not directly but through a third party vendor.

• How well do you know the security of your vendors?
• How will you recover loss of income when an attack impacts any of your vendors and indirectly impacts your operations?

Imagine a scenario where a global attack comes on the heels of a natural disaster. What about an attack on major cloud provider? Will your business survive? Can your business survive?

Cyber Insurance is not a substitute for cyber security. However, policies are available that will be a valuable asset in responding and recuperating from a cyber attack. Logically, those businesses that understand their risk, have taken all possible precautions and are prepared to respond will be in a better position than those that do not.

New Information Surrounding OSHA 300 Log Electronic Reporting

Over the summer, OSHA announced beginning August 1, 2017 employers can submit their OSHA 300 log data electronically directly to OSHA, via the OSHA website.  Although the OSHA website will allow companies to upload injury data starting August 1, 2017 the deadline for uploading this data remains December 1, 2017.

What does this mean for you?

Essentially, companies with more than 20 employees and in select NAICS codes (primarily construction and manufacturing) would need to submit their data between August 1 and December 1 of 2017 for their 2016 OSHA 300 log totals. 

“Covered establishments with 250 or more employees must electronically submit information from OSHA Forms 300 (Log of Work-Related Injuries and Illnesses), 300A (Summary of Work-Related Injuries and Illnesses), and 301 (Injury and Illness Incident Report). Covered establishments with 20-249 employees must electronically submit information from OSHA Form 300A.” – www.osha.gov

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.

With this most recent update, R&R recommends taking the reporting process slowly and not feeling pressured by the December 1, 2017 date. We invite you to listen to a previously recorded webinar regarding OSHA 300 Logs or attend our upcoming webinar on November 7th hosted by John Brengosz.

$2,000 donation given to the Bryon Riesch Paralysis Foundation

Waukesha, WI – Delta Dental announced R&R Insurance Services as Small Business Agency of the Year. The Small Business Agency of the Year is presented annually to the agency partner that places the most new group dental plans, with less than 50 enrolled employees, in a given year.

Both R&R and Delta Dental are mission driven organizations with a passion for building long-term relationships, giving back to those in need, and making a positive impact in the community.  "We value R&R Insurances’ commitment to helping improve oral health for more Wisconsinites," said Rick Zupan, Delta Dental of Wisconsin.

In conjunction with the award, Delta Dental provided a $2,000 donation to the Bryon Riesch Paralysis Foundation. As a Foundation held close to the hearts of those at R&R, the gift further instills the value of both companies to make a difference in the lives of others.

“We have a great amount of respect for the both the insurance expertise and the commitment to the community that Delta Dental provides,” said Dave Lancaster, Vice President of Employee Benefits at R&R. “This award, and in turn the donation to the Bryon Riesch Paralysis Foundation, are unbelievable examples of giving back. We are incredibly proud of our partnership with Delta Dental and look forward to continued growth for our agency and the community.”

R&R Insurance Services, Inc. has served the insurance needs the Midwest since 1975. Today, R&R is Wisconsin’s largest singly owned independent insurance agency offering businesses and individuals a full range of insurance products including property casualty, employee benefits, workers compensation, liability, life, dental and home/auto. R&R is also a shareholder with Assurex Global, a worldwide network of leading independent insurance agencies. For information about R&R Insurance Services, visit R&R online at www.myknowledgebroker.com.

As one can imagine, the construction industry has some of the riskiest jobs in America. Construction workers face a wide range of hazards at work everyday from falling debris to machinery mishaps and everything in between. Below, is a countdown of the top five most dangerous construction practices.

#5: Working with Power Tools. Although power tools are used in most construction jobs, sometimes the greatest risk exposure occurs during tasks that have become second nature to the worker. Over time, because of the frequency and repetitiveness, employees are likely to overlook the safety precautions and form sloppy usage habits. For instance, did you know that OSHA gets reports of 37,000 emergency room visits a year, just from nail guns?

#4:  Heavy Equipment Operators. Many worksites in construction have large machinery on site. To avoid dangers, equipment operators need to be heavily trained in proper usage of the machinery. Site planners should be aware of the surroundings and be careful not to bring equipment into an area where it’s not suitable. Also, to avoid failure, machinery should be carefully inspected on a regular schedule.

#3: Sewer and Duct Construction. While working in confined spaces, it is important that proper ventilation is secured before sending any crew into a tight space. Furthermore, in the case of an accident, emergency escape routes should be in place if possible. If not, only the most trained individuals and properly maintained tools can help reduce the risk of suffocation or getting trapped.

#2: Demolition Jobs. Jobs in demolition rank high on this list because it is the most unpredictable job in construction. It is hard to calculate how gravity and other factors will affect a piece of falling material. However, many of the risks of demolition actually can be avoided with proper planning. Electrocution, for instance, is a common demolition injury that safety measures could prevent.

#1: High-Rise Construction. Working at heights is the #1 most dangerous construction job. Fall accidents make up 40% of construction-related deaths, and countless more injuries. The higher the building, the higher the risk. Other inherent risks include harsh weather – especially during the Wisconsin winter months, fire, and high winds. The type of work being done up in the air also influences the amount of risk. Concrete work and lifting with cranes rank among the most dangerous.

Risk awareness promotes safety and can help prevent injury or death on the jobsite. Partnering with the right agent provides you and your employees with the proper safety information and guidance to minimize construction hazards.

Questions regarding your safety program? Contact safety@rrins.com

Information provided by Insured Solutions Inc.

According to a report from the Healthcare Performance Management Institute, on average, $2.59/hour or 8% of a worker’s total compensation is connected to employee benefits and wellness programs. Because employers dedicate a significant amount of money to these programs, it only seems natural to devote time to ensure the benefits are utilized effectively in order to get the best value for their investment.

While a true ROI or dollar figure isn’t clear cut, research has reinforced the ideas that with improved health decreases employee absenteeism, improves culture and attitude, and increases productivity. 

If employers want a sustained health management program, they should keep in mind and acknowledge the following items:

1. Employees want choices. They need to feel that the employer is interested in their health and wellness for the right reasons - not just trying to steer them toward the lowest cost option. Trust is essential.
2. Employees want to be included. Consider engaging an insurance and/or wellness committee. Peer buy-in is crucial.
3. Like all healthy/effective relationships, clear communication is a must. Without effective communication no program will succeed long-term.
   • Customize the materials.
   • Target the programs.
   • Understand the employees readiness to change. If they don’t want to change a lifestyle habit, it may not be cost effective to pursue that topic with the employee. Focus efforts where you can make an impact.
   • Address the barriers and concerns employees may have. Don’t ignore or sweep them under the rug. Be straightforward and honest.
   • Make the financial incentive or disincentive easy to understand - no hidden agendas. 
4. Predictive analytics and profiling should be used to guide decisions on programming.
5. Involve spouses in the education and wellness programming to increase success.

Diabetes, heart disease, high blood pressure, and high cholesterol are the typical chronic conditions for employees. Similarly, the desire for improved nutrition, increased physical activity, and decreased stress are the big “wants” from employees. The tough part is following the strategic steps to engage the employees and get their buy-in and support. Only then will employers truly make an impact on the cost. It may be a culture shift for some employers. 

Here at R&R Insurance, we can assist you in finding the right Knowledge Broker to help navigate this process. Click here to contact us. 

Many people are exposed to heat on the job, outdoors, or in hot indoor environments. Operations involving high air temperatures, radiant heat sources, high humidity, direct physical contact with hot objects, or strenuous physical activities have a high potential for causing heat-related illness. When the body is unable to cool off by sweating, heat-induced illnesses, such as heat rash, cramps, heat exhaustion, and heat stroke can occur. These illnesses can be serious, sometimes even resulting in death. However, these illnesses and deaths are preventable.

Policy ownership is the number one issue when it comes to taxation. Having the policy set up incorrectly could mean the difference between a Tax-Free Death Benefit and a Taxable Death Benefit.

Buy-Sell Agreements
Every business should have a continuation plan, either in the form of a Buy-Sell Agreement or via will. It should specify what would happen with their ownership if they died, were disabled, or wanted to retire. Typically, these agreements are drafted as Cross Purchase Agreements or Entity Purchase Agreements. Most businesses fund these agreements with Insurance, but how that insurance is owned will make a big difference in terms of taxation.

S-Corp vs C-Corp
Whether you own an S-Corporation (LLC) or a C-Corporation, having the insurance owned by that entity could seriously affect the tax treatment of the death claim. Not only do you possibly trigger a 15% Alternative Minimum Tax (AMT) on the death benefit, but you could also be increasing the value of the business at the worst time, your death. Plus, the loss of step-up in basis to the surviving owners could be even more devastating. Allowing us to review those policies, and determine the correct ownership structure can alleviate any worries, and ensure your insurance is set up in the most efficient way.

Personal Policies & Estate Planning
Currently, in 2017, each individual has a lifetime exclusion of $5.49m. Anything over that amount gets taxed at 40%. Keep in mind, this is subject to change and most likely will change going forward. Which is why having a plan that provides flexibility is essential. Even if your estate is not over that exclusion amount, you may still want to consider having your policy owned by an Irrevocable Life Insurance Trust (ILIT). An ILIT will provide creditor protection as well as outline how you want the money handled in the event you pass away and your spouse remarries.

Don’t wait until it’s too late! Contact Pat Driscoll or Tom Driscoll for a complimentary review of your policies.

A 2015 airplane crash killed two men and seriously injured a third during filming of Tom Cruise's upcoming film "American Made".  Whether flying as part of a Hollywood movie production or flying for hobby, this serves as a great reminder not only for aviation consumers but general commercial consumers as well.    

Read full article: Fatal plane crash in Tom Cruise movie leads to insurance fight

Specific to aviation insurance the article  shows why it’s so important to be a “named pilot” and not just meet the open pilot warranty. This provides the protection of insured status at that point without the possibility of an exclusion applying.  

In all types of commercial insurance it’s a good reminder of how important the following points are:  

1. Proper risk transfer agreements (hold harmless, additional insured and waiver of subrogation)
2. Review and confirmation that there is adequate limits of insurance with the company you have entered an agreement with.

Have questions regarding coverage on your insurance policy?  Contact a KnowledgeBroker.