R&R Insurance Blog

Is your organization taking advantage of the numerous ways to save money on health insurance? Are you looking to reduce your insurance premiums?

While there are numerous benefits to implementing and maintaining a robust wellness program, reducing the number of employees who smoke is an important piece of the wellness puzzle. Proactively providing smoking cessation programs will have a direct impact on your health insurance premiums. In addition, smokers commonly have longer recoveries from surgery and often need repeat surgeries which causes work comp claims to skyrocket on individual surgical claims.

The Charolotte Observer recently published an article with examples of doctors refusing to operate on those who smoke. According to research, one study found that smokers who got joint replacement surgery had an 80 percent higher chance than nonsmokers of needing repeat surgery because of complications from infection.

Click here to read the full article.

Are you looking to revamp or jumpstart a wellness program at your organization? Contact me to learn more about the resources R&R has available to assist.

Each year as the weather gets warmer, the bikes come out. So it's good to know the rules of the road for motorcycles and how to drive safer around them. Here are a few key points from this great article by Mike Rodgers:

• When making left turns, look for traffic...then look AGAIN for bikers
• Let them swerve and leave as much space as possible
• Stay back - rear ending a motorcycle is obviously much more dangerous than a vehicle
• Make a conscious note

Have fun and be careful out there!

Motorcycle Roads: Find routes, maps, rides and trips

Killboy.com: Motorsports photography taken from the Tail of the Dragon

Motorcycle Related Links

World's Worst Motorcycle Crashes

Discovery Channel Motorcycle Wipeouts

For Wisconsin residents looking for Motorcycle Insurance, Home and Auto Insurance, contact knowledgebroker Jeff Wolfgram.

While we all hope to avoid accidents or the need to report an insurance claim, it is important to understand the process if/when a situation occurs. Below are step-by-step instructions to help you navigate the road to reporting a claim.

1. Who: Who is involved in the claim? Obtain names, addresses and phone numbers of those actively involved.
2. What: What happened? Write down details while the event is fresh in your mind, and avoid listening to other's statements as they may be misleading.
3. Where: Where did the claim happen? On your premises or somewhere else that you performed the work? On what street, in what town, etc.?
4. When: When did the claim happen? Document the time of the accident. When did you do the work for the claimant?
5. Additional Information: Was anyone hurt (be sure to document their name)?  Were the police contacted (number on police report, when it will be available)?  Do you have any photos, driver statements, or estimates for repairs that you can send us for when this is reported to the company?  
6. If this is a Work Comp Claim (injury while on the job): The employer will need to complete a 'First Report of Injury' form and get it to the carrier/agency.

For additional information about reporting a claim, contact your KnowledgeBroker. We are here to make the process as seamless and effective as possible.

Back in 2012, Coca-Cola was hit with a $24 Million distracted driving judgment. The plaintiff’s attorneys were able to successfully argue that Coca Cola’s cell policy for drivers was "vague and ambiguous." They also suggested that Coca-Cola was aware of the dangers but withheld this information from its employee driver, which led directly to the circumstances that caused the accident. The jury awarded $14 million in actual damages and another $10 in punitive damages to a woman hit by a Coca-Cola truck driver who was chatting on her cell phone.

Do you have a robust “fleet policy” in place? Are your employees aware of your expectations while driving? Do you periodically provide training to your employees who drive for business, whether in your company vehicle or in their own personal vehicle? If you answered no to any of those questions, you are exposed to a similar Coca-Cola fate.

Having and enforcing a “fleet policy” with a clear expectation on cell phone usage is vital to protecting your employees, the general public, and your company assets.

If you would like to see a sample fleet policy, please click here. It’s just one of the many resources that we share with our clients at R&R as a way of creating value.

Contact me if you would like to learn more about increasing the profitability of your company by proactively controlling risk exposures.

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.

It’s not something that most people think about, but just like your business, NFL teams also have to purchase worker’s compensation insurance for their employees. And just like the benefits that are afforded your employees, football players are covered for lost wages, medical treatment, loss of earnings, etc.  

No doubt that the medical treatment for an injured NFL player could get to be quite expensive. But the concept of paying loss of earnings to a player beyond their normal playing years doesn’t seem to be sitting well with the owners of the Chicago Bears.

Click here for the article with additional information.

Benefits in Wisconsin are actually much richer. An employee injured in Wisconsin could continue to collect similar benefits for a lifetime, regardless of when they might have retired.

We will see how this all shakes out and whether or not it will have an impact on Chicago’s ability to sign players in the future.

Contact me with any questions about your Workers Compensation, and Go Pack in 2017!

As more and more people are renting instead of buying properties, the topic of renter’s insurance comes up more frequently. I don’t have a lot of stuff, do I really need it? What does it cover? Is it expensive? Doesn’t my landlord’s policy cover me? These are all frequent questions that come up when thinking about getting a policy.

 

I don’t have a lot of stuff, do I really need it? What does it cover?

Regardless the amount of items you own, there are other important parts of having a renter’s policy. Even if you think you could afford to replace every item you own out of pocket, there are other very important coverages in a renter’s policy.

The three big parts of the policy are—personal property, liability and loss of use. Most people simply think of the personal property, but that’s just a fraction of the coverage provided.

 

Personal Property

This includes all of your belongings - clothes, furniture, kitchen items, etc. Any items that you own would be covered up to the limit that you have chosen. A really important thing to check is if your contents are being insured at Replacement Cost vs Actual Cash Value. If your items are insured at Actual Cash Value, you will receive the depreciated value of your items, i.e. rummage sale prices. Paying a few dollars extra to receive Replacement Cost on your personal property is worth it as your insurance company will pay what it costs brand new. In the event of a loss, an average renter could easily have between $20,000-$30,000 of damaged personal property.

Example:  Think about that old couch you’ve had for years. How much would that be worth at a rummage sale? $30? That’s probably what you would get for it at Actual Cash Value. How much does a brand new couch cost? Anywhere from $500 and upwards? Replacement Cost coverage would pay for the brand new couch. Imagine trying to replace all of the items in your apartment with a fraction of what it costs to buy new ones. Which option do you want in the event of a loss?

 

Personal Liability

This is a very important part of the policy. This would provide coverage for any damages that you cause or any bodily injury that may occur in your apartment. Even though you don’t intend to cause damages, accidents do happen and could be financially detrimental without insurance.

Example:  If you left a candle burning and it burned your apartment and neighboring complexes — unfortunately you would be responsible for the damages. For one simple mistake, you could end up owing hundreds of thousands of dollars for all the damages that are done.

 

Loss of Use

This coverage provides a place to stay if something happens to your apartment and makes it unlivable. Your insurance company will pay for you to stay somewhere comparable to where you were living. In addition, they will pay for expenses you incur, such as going to a laundromat and meals you may have to eat out.

Example: Apartment fires can happen for a variety of reasons and can spread very quickly. Even if your apartment isn’t burned, it may still have a lot of smoke damage, causing it to be unlivable. Where are you going to go? It could take a month or more to get everything cleaned up. Without renter’s insurance, you’re going to have to pay for a hotel, stay with a friend, or even rent a new place to live—all on your dollar. A renter’s policy will find you a place to stay and pay for it up to the limit noted on your policy.

 

How much does it cost?

Renter’s policies vary in price depending on the coverage amounts you choose. The typical price would be cost of one take out meal per month ($10-15). You can even get your renter’s policy for much cheaper if you bundle it with your auto insurance carrier.

 

Does my landlord’s policy cover me?

Most landlord’s policies are built to only cover the building itself, not the tenants belongings. Even if the landlord’s policy covers the building, if you were to cause damage to it, you would still be held responsible. The landlord’s insurance company would come after you for the monetary damages. Without having a renter’s policy, you would be responsible.

 

Renter’s policies are recommended for anyone who is renting, but if you are still unsure or have more questions, please contact your Knowledgebroker.

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.

Having an attractive employee benefits option is more important than ever before. Attracting and retaining talent has become increasingly difficult and offering a quality benefits package can play a large role in the process.

In addition, you may want to protect your company from the risks associated with offering employee benefits. While employers have traditionally insured their employee benefits risks through an outside insurance carrier, the increased demand for employee benefits has resulted in an inflation of costs. Because of this, many employers have opted to cut out insurance carriers altogether and fund their group employee benefits risks with captives.

If you aren’t familiar with captives, let’s start with the basics. Captives are a form of self-insurance in which the insured owns the insurer. They are created and owned by at least one non-insurance company for the purpose of insuring the employee benefits risks of its owner.  A captive can offer significant savings and become a substantial long-term investment. However, they may not provide the same benefits for every company, and the return on investment may be low.

R&R Insurance has extensive experience in the world of employee benefits. We welcome the opportunity to discuss the advantages and disadvantages of captives with your organization.

Information provided by Zywave, Inc