R&R Insurance Blog

With more recent research being done on employee health and its effects on companies, it is now safe to conclude that the benefits from encouraging and implementing a wellness program are no longer disputable. Whether it is lower health care costs, greater productivity, lower absenteeism, or higher morale, healthy employees cost you less and have a noticeable impact on the company in both the short and long term.

Over time, you are able to drive down health care costs by positively influencing your employees’ health and well being. You can impact the healthy employees by maintaining their wellness, and even get some employees who are on the edge of being unhealthy back into good health. 

An example of this written in the Harvard Business Journal, explains that doctors who conducted a study, at a single employer, researched a random sample of 185 employees and their spouses. The participants were not heart patients, but they received cardiac rehabilitation and exercise training from an expert team. Of those participants classified as high risk at the beginning of the study (according to body fat, blood pressure, anxiety, and other measures), 57% were converted to low-risk status by the end of the six-month program. Furthermore, medical claim costs declined by $1,421 per participant, compared with those from the previous year. A control group showed no such improvements. The bottom line: every dollar invested in the intervention yielded $6 in health care savings for that company.

A wellness program is not only a strategy for cutting avoidable costs, but also functions as a commitment to your employees and the overall health of your organization.

Wellness initiatives provide opportunities to help brand the company and drive change to the organizational culture. Here are some outcomes that result from developing your company brand and culture that could emerge from the pursuit of a healthy company lifestyle:

• Increased leadership opportunities
• Educated and empowered employees
• Ability to build connections and make cross-department communication easier
• Positive perceptions of the company and the workplace
• New, unique company and employee needs can be identified and acted upon

For further reading on workplace wellness check out this article.

Every business has an exposure and risk of becoming a cyber crime victim. While most businesses are familiar with insuring for traditional risks, there are a range of exposures that your business may need to be protected from. The following questionnaire provides in depth insight into risks you may not have previously contemplated.

Do you accept credit card payments? 

If yes, any merchant or organization, regardless of size or  number of transactions, that accepts, transmits or stores any cardholder data is required to be PCI (Payment Credit Card Industry) compliant. This includes any debit, credit, and prepaid cards branded with one of the 5 associated/brand logos  that participant in PCI SSC—American Express, Discover, JCB, Mastercard, Visa International.  Using a third party processor does not exclude a company from PCI compliance.  Check your merchant services agreement which outlines your exposure.

Do you process payroll? 

If yes, you are responsible for the safekeeping of this data even if outsourcing to a payroll data company.

Does your business utilize computers/software to run any part of operations?    

If yes, what is the potential loss of income should the system be non-operational?

Do you offer any employee benefits to your employees? (health insurance/life insurance/ disability)?

If yes, you have Personally identifiable information on your employees, spouses and children that you are required to protect, whether in paper or electronic  format.

Does your company offer a wellness plan?

If yes, according to the Office for Civil Rights (enforcement body for HIPAA), providing workplace wellness programs to employees requires employers to gather health data through health risk assessments and various other means and those data must be protected under HIPAA.  The HIPAA Safety Rule requires that all covered entities to implement technical, administrative and physical safeguards to prevent protected health information from being viewed or accessed by unauthorized individuals.  Fines of more than $50,000 can be assess for each violation up to $1.5 million per calendar year.  Even companies that are not covered entities may be subject to HIPAA rules should PHI be breached.

Does your company allow employees to connect mobile storage devices to office computers?

If yes, malware and virus can infect your system via these devices.  If you have a policy that prohibits these activities, are you certain that all your employees follow the policy all of the time?

Have you ever received an email that appears to come from a known party directing you to transfer money? 

If yes, this is an example of a phishing scheme. 

Do you allow access to your system to outside parties using a VPN?

If yes, open portals are gateways into your system and are being utilized by hackers.

Do you conduct business over the internet or through your website?

 If yes, what impact would your business experience if it was no longer operational?

Do you provide for an EFT option to either accept payments from your vendors or to pay your vendors?

If yes, you have personally identifying information for either individuals or businesses – i.e. bank account information.

Do you require employment applications?

If yes, you have personally identifiable information.  Where is this information kept?  What do you do with applicant information for individuals that you do not ultimately employ?

Do you store, process, transmit any personally identifiable personal or health information for employees, customers, patients, students, companies, vendors, etc?

If yes, you have a legal obligation to protect that information. 

Contact us for additional information, or download our cyber liablity e-book to learn more about properly protecting the business you've worked so hard to build.

Are you and your company prepared for the un-timely accident to one of your owners?

If liquidation is forced on a disabled business owner or on the executor of a deceased business owner, it can quickly become public knowledge that there is pressure to dispose of the business, and these results can be anticipated:

• Sale of business assets at greatly reduced prices.
• Elimination of the disabled business owner's or surviving family's primary source of income.
• Sacrifice of any goodwill value that might have facilitated sale of the business as a going concern.
• Difficulty in collecting accounts receivable.
• Immediate demand by creditors for settlement of their claims.
• Possible liquidation of other estate assets to pay business debts.

The liquidation value of a business is unpredictable and may be substantially less than the value of the business as a going concern.

In some situations, the liquidation of a business interest at an owner's death or disability may not be just an appropriate decision. It may, in fact, be the only possible outcome under either of these circumstances:

• The success of the business is completely dependent on the personal skill and experience of the owner.
• There is no successor management in the form of a capable family member, a co-owner, a key employee interested in purchasing the business or an outside buyer.

In these circumstances, the question becomes, "Will the liquidation take place on a forced basis, or will it be planned in advance to allow for the most advantageous disposition possible?"

When liquidation of the business at an owner's death or disability is the only viable alternative, the primary objective should be to plan in advance for an orderly liquidation that results in the greatest possible value for the disabled owner or surviving family.

Contact us for more information on properly protecting your business.

With Memorial Day around the corner, you’re probably planning which local parades you’ll be attending. And we all know that when kids hear “parade” they also think…candy! We’ve participated in a few parades ourselves and know how important it is to keep the little ones happy.

Here are a few tips and tricks for bringing home the maximum amount of candy:

• Positioning: Don’t take your chances and position yourself at the end of the parade. You never know how much candy is stock-piled on the floats, and there’s a good chance they’ll be out by the end of the route. Find a good spot up front, and claim it.
• Children: Also known as, Candy Magnets. Everyone likes to make a child smile, and for that reason kids are much more likely to be tossed handfuls of candy. Be sure to find a nice family-friendly, child-filled spot to claim as your own.
• Acknowledgement: You’d be surprised what flashing a smile or giving a friendly wave can do. Show your excitement and interest in being there and you’re bound to get acknowledged by the candy tossers.

With nice weather on the radar, we hope you’re able to get out and make the most of these summer celebrations. And wish you nothing but candy-filled success.

Here is a list of the upcoming Memorial Day Parades in Wisconsin. Take a look and see what’s going on near you!

If you’re like most of the employees here at R&R, you’re obsessed with HGTV’s hit TV Show “Fixer Upper.”  Chip and Joanna Gains give us major house envy with each episode, and we can’t help but see our own honey-do lists growing each week. 

If you’ve successfully tackled some home projects and are currently admiring the fruits of your labor, we want to hear from you!  Things like updated roofs and furnaces, alarm system installations and changes to your fireplace setup can provide instant premium savings if we notify your carrier about these improvements. On the opposite end, cosmetic upgrades and additional square footage may or may not need to be reflected on your existing policy’s coverage limitations (but we should talk about it either way). 

So when your next home project has been finished, and the paint and sawdust have settled, give us a call so we can review your policy together and make the necessary coverage recommendations to ensure your policy will respond appropriately in the event that you need it.  If you have pictures for us to admire, we love those, too.

Still in need of some inspiration?  Click here for Joanna’s favorite “Fixer Upper” renovation of all time!

Click here to contact a Knowledge Broker at R&R!

Most of us are familiar with the run-of-the-mill claims that typical home & auto insurance policies cover. You’re having a summer barbeque and the deck catches on fire. Covered. You’re teaching your teenage son to drive and he rear-ends the neighbor’s car. Covered.

Accidents, while unfortunate and unexpected, do happen. But the peace of mind that comes with buying a quality insurance product and knowing it will be there to help you pick up the pieces can help ease the anxiety that is associated with these unexpected events. (It may not help calm your nerves when getting back in the car with your teen driver, however.)

But what about those rare instances when the truly unexpected claim arises?  You know, the type of claim that you never thought would happen to you?  Do you know how (or if) your insurance policy will respond? Take the test below to find out if these bizarre incidents are covered by your home and auto policies, and start building your insurance knowledge!

• You finally get those pesky mice out of the basement only to find they’ve made a home in your car. They’ve created a beauty of a nest and chewed away at the electrical system. Covered?
• Your full-time college student forgets to lock her dorm room when she leaves for class one morning. She comes back to find that her brand new flat screen TV and shiny laptop are gone. Covered?
• A nasty summer storm strikes and you’re left with no power. The fridge you filled on Sunday starts to warm up and all of your fresh groceries are now spoiled. Covered?
• You’re doing the annual spring tree trimming and decide to tackle those annoying branches hanging above your bathroom skylight. You make one wrong move and a branch goes straight through the window. Covered?

If you answered yes to the questions above you are an expert insurance policy holder! All of the incidents above would be covered under your home or auto policies.

It’s important to remember that all insurance policies do have coverage gaps and exclusions, so we recommend reviewing your policy annually to ensure that it continues to meet your family’s ever-changing needs.  If reading insurance contracts does not sound like your idea of a good time, please contact us – we’d love the opportunity to walk you through this process!

Going to the DMV can often times feel like a chore. Whether you’re trying to squeeze it in during a lunch hour, or rush to beat the after work crowd, there’s never a good time to take care of pesky car business.

We frequently speak with customers that are heading to the DMV for services that can be taken care of online. Here is a quick reminder about what's available from the comfort of your own home:

• Change of address
• Get a duplicate driver license or ID card
• Check eligibility and reinstate a driving privilege
• Purchase a driver or vehicle record
• See if a license is valid
• Manage the registrations for a fleet of vehicles

For more information on these and other online services, visit www.wisconsindmv.gov.

Since the beginning of the year there have been numerous reports of data breaches where criminals are gaining access to personal W-2, tax and payroll information by either hacking into on-line payroll systems or tricking employees into allowing access to this information.

On March 8, 2016 Ozaukee County reported that their payroll and tax portal “Greenshades” had been breached and the personal information of approximately 200 employees was compromised. According to the Greenshades website, they are experiencing an abnormal increase in identity thieves using personal information to log into the company’s system to access personal tax information.

Sequoia Union High School reported on February 3, 2016 that an unauthorized third party gained access to an office computer and accessed information on employees and retirees as a result of a phishing incident.

On February 24, 2016 Central Concrete Supply Co., Inc., Right Away Redy Mix, Inc, and Rock Transport, Inc. became aware of a data breach in which they believe a third party gained access to copies of 2015 W-2 income and tax withholding statements. The information was stolen through a sophisticated social engineering scheme in which an outside party posing as another person convinced a Central Concrete Supply employee to provide copies of documents by email.

In another breach, Turner Construction Company reported that certain person information was disclosed in an email to an unauthorized recipient. As a result, other persons may have obtained personal identifying information including name, social security number, name of each state in which wages or taxes were reported for the affected residents, and federal, state, local and Medicare earnings and tax withholding data.

Earlier this year a former records clerk at Tampa General Hospital was arrested for theft when it was learned that she accessed personal identifying information of patients and used that information to file $671,022 in fraudulent tax returns.

As these cases exemplify, criminals are targeting all types of businesses in order to gain access to the personal information of employees.  It appears that they have shifted their focus from credit card data to the personal employee information that all businesses have. Whether that information is outsourced to a payroll firm or retained internally, they are using sophisticated social engineering and phishing schemes to trick unsuspecting employees to provide access to this information.

In the Commercial General Liability coverage form the term professional is not defined. There are instances where you could be considered a professional and if a claim arises there may not be coverage available in the general liability form.

There are also exclusions in the commercial general liability coverage form for personal and advertising injury if you are in the business of advertising, broadcasting, publishing or telecasting and in some cases you can add some professional liability coverage back on such as the Optical & Hearing Aid Establishment Endorsement, Druggist, and Cemetery Professional to name a few.

The question may arise why should I purchase a separate professional liability policy? The commercial general liability coverage form covers bodily injury, property damage and personal injury as the result of an occurrence. Many professional liability losses are not the result of an occurrence. A stand-alone professional liability policy may offer broader terms than the commercial general liability policy.

In certain cases it is hard to determine which policy would respond. For an example, if you are in the medical profession and the doctor orders an EKG for a patient. If the patient fell and was injured while getting on the exam table, which coverage would trigger coverage, the commercial general liability policy or a professional liability policy?

If you are in the medical profession, accounting field, insurance agent, attorney, design professional, mortician, printer, social worker, trust department, veterinarian, or real estate agent professions we strongly recommend a professional liability policy.

There are several options available when considering a professional liability policy. Some of these options are:

• Would it be best to purchase an occurrence form or a claims made form?
• If I purchase a claims made form are prior acts covered?
• Are defense costs within the limit of insurance or outside the limits of insurance?
• Does the policy indemnify or pay on behalf of?
• Who has the right to settle a claim?
• Will the policy include my employees?

These are just a few of the options available. Contact a knowledge broker at R&R Insurance for more information.

Throughout the course of the year, an insured can accumulate quite a few certificates of insurance that are distributed to various entities. Depending on your business, these certificates could be issued based on complex contracts that provide the holders with coverage from your policy. When it is time for your policies to renew, it is important that you review the certificates that have been issued and determine whether they need to be renewed.

Here are some thoughts to consider when reviewing your certificate holders:

1. Are we still on the jobsite or do we have any current work with this customer?

In this instance they are most likely going to need to see you still have insurance coverage in place. Failure to do so could result in delayed payments or not be allowed back on to the jobsite.

2. Do we have a completed operations requirement on the contract?

It is easy to go through the jobs you had throughout the year and remove anything you have already completed. However, many contracts require completed operations coverage to be held for 2-3 years or even longer.

To comply with this portion of the contract, they may need to continue to receive a certificate of insurance. HOWEVER, you may want to take a look at some of the extra costs on these contracts to see if you can remove them. For instance, if your employees are no longer on the jobsite, you may be able to remove the required workers compensation waiver of subrogation as the exposure would no longer apply. This could save you unnecessary costs on your renewal, if the waiver was added specifically for the project.

3. Is the job completed &/or are the requirements of the contract completely met? If so, it is not necesssary to renew the certificate and it should be removed from the certificate list completely. Any costs that you were paying for additional insured endorsements, waivers of subrogation, etc. can then be removed from the policy. The savings can really add up!