R&R Insurance Blog

In order to take a closer look at Employers Liability (EL), let's start with the basics of Workers' Compensation. Work Comp applies to bodily injury or disease caused by a condition of your employment. There are no limits for work comp. In addition, the state helps to regulate the amount paid out for workers compensation benefits.

Employers liability, such as negligence, pays damages that you legally must pay because of bodily injury to your employees that are not covered by the workers' compensation policy. The limits shown on the declarations page are the employers liability limits.

The 4 most common types of Employers Liability claims are:

• Third Party Claim or Action Over:   A claim filed by a third party against the employer for negligant actions that caused injury to an employee.
• Example: An employee is injured using machinery that was not well maintained by the employer. The employee received work comp benefits and also sues the manufacturer of the equipment. The manufacturer in turn sues the employer for negligence.

• Care and Loss of Services: Claim filed by the injured employees spouse for loss of the employees “services”. This can include dependents care and service that the injured parent can no longer provide.

• Consequential Bodily Injury: Claim filed by the injured employees family member for consequential injury.
• Example: Spouse suffers a heart attack after hearing of the injured employee

• Dual Capacity Claims: Claim brought by the injured employee against the employer when the injury arises from a product that the employer manufactures.

To learn more about Employers Liability or for questions about your business, contact a KnowledgeBroker.

With increasing news of violence in the workplace, would you recognize the signs of a co-worker ready to snap? The most recent incident where two news reporters were killed on-air has raised questions regarding liability of workplace safety.

The Center for Disease Control considers workplace violence a national epidemic. Violence is described as not only killings by employees, ex-employees, family members, customers, but violence can also include “bullying” in the workforce. Violence can be physical assault, threatening behavior or verbal assault.

There are many reasons a worker can lose control:

• Stress
• Excessive Workloads
• Harassment & Intimidation
• Verbal Abuse
• Threat of Firing
• Stress at Home

Be aware: 85% of workplace violence perpetrators exhibit clear warning signs before it is acted upon.

• An Employee requiring significant amount of supervisor time
• Decreasing productivity
• Inconsistent work patters
• Poor on the job relationships
• Poor Health and Hygiene
• Unusual Behavior

If you notice unusual behavior, try talking to this person. A little “caring” conversation can make a difference. If behavior does not change, you should go to your HR Department and voice your concerns. They will take these concerns seriously. They may be able to offer this person help in an area you would not even think about. They are the experts in this field.

We've all heard it before, "Make sure you let you car warm up in cold weather." But is there truth to that statement? Or is it just a convenience to hop into an already defrosted vehicle? Does letting your car idle prevent wear and tear on your engine, or simply waste gas?

Our partners at West Bend Mutual shared an article about the common myths and facts of warming up your car on a cold day. Here's an example of their findings:

Myth – It’s a good practice to let my car idle (warm) on cold days.

Fact – The only reason to idle a car is to circulate the engine oil. Experts recommend letting your car idle 10 – 30 seconds; there are no benefits to letting your engine idle any longer. The best way to bring your engine up to operating temperature is to gently drive your car. By simply driving your car, the engine and its components (brakes, transmission, etc.) will warm up faster which allows your car to run more efficiently.

Dan's Reality – Despite the benefits it may or may not provide, there's nothing better than getting into a car with defrosted windows, warm seats, and hot air blowing through the vents. A remote starter has been one of the best decisions I've made to get through Wisconsin winters. (Note: Don't forget to keep your car locked while you're letting it warm up!)

Click here to read to read the full list of myths vs. facts from West Bend Mutual.

As our Executive Claims Consultant, I frequently assist clients and insurance company partners with difficult and complex claims situations.

Recently, we encountered a situation on a homeowner's claim involving a sump pump back-up. To set the stage, this particular client had purchased a separate endorsement on their policy for back-ups of sewers and drains. The endorsement covers water damage associated with sewer and drain back-ups. (Click here to learn more about the importance of this endorsement.)

Due to the unique plumbing used for this particular sump pump, the back-up not only caused water damage in the basement around the sump, but on the exterior of the home as well. A pipe from the sump pump leading out of the house began to leak. That water landed on the ground, and then ran directly in through a basement window causing more damage to drywall.

The carrier paid for the damages from the water that backed up through the sump, but they denied the other damage as being caused by surface water. Surface water coming into your home is not covered by this endorsement. They said that once any water hit the ground, no matter it’s source, it was considered surface water and damage caused by it was excluded.

Through a thorough investigation, I was able to determine that the exterior water damage was in fact due to the sump pump back-up. Due to our closer examination and review with the carrier, we were able to get that denial reversed and have the additional water damage covered.

Reviewing complex claims with our Business and Personal Insurance clients is a value added service that R&R is able to provide. With 20 years of claims experience, as well as a legal degree, I understand the importance of walking through difficult situations step-by-step to provide our clients the proper coverage.

Disclaimer:

Please note that R&R Insurance Services, Inc. is not a law firm. Brian Bean does not provide legal representation to clients of R&R Insurance Services, Inc., or to R&R Insurance Services, Inc.

Hired and Non-Owned Liability coverage creates special concerns for businesses. The Hired Auto Liability coverage applies in a situation where a business owner or any other person with the business owner’s permission uses a “hired” auto in the course of business. A hired auto means any auto you lease, hire, borrow or rent.

Non-Owned Auto Liability coverage applies in cases involving employees driving their own vehicles on business for their employer. Non-Owned Liability refers to autos the business does not own, lease or hire. Some scenarios where Non-Owned Auto Liability applies are food or other types of delivery, or an employee running errands for their employer. The coverage protects the employer’s interest and is excess coverage for the employer. The employee must have their own auto coverage, which will apply first to a claim.

Some businesses use drivers on bicycles or golf carts to deliver food or other products. Since bicycles and golf carts are not licensed for road use, they do not fall under the Business Auto’s Non-Owned Liability coverage. If the driver causes an injury or property damage, any coverage that may apply will be picked up by the General Liability policy.

Regarding Non-Owned Auto Liability employers should have procedures in place to verify that employees have their own coverage in force. Driving records should be checked periodically and confirmed that they meet the insurance companies requirements.

Many insurance companies offer the coverage and limits greater than $1,000,000 are available from some insurers. Contact a Knowledge Broker at R&R Insurance for additional information.

Business Insurance® named R&R Insurance Services, Inc. as one of the Best Places to Work in Insurance for 2015.

According to Business Insurance®, the award is based on a two-part assessment of the company. The first portion includes a questionnaire completed by the employer about company policies, practices and demographics. The second portion is a confidential employee survey on engagement and satisfaction. Companies recognized fall into three categories — large employer, medium employer and small employer — in the industry segments of benefits brokers and consultants, claims managers, group life/health insurers, property/casualty insurers, retail agents/brokers, reinsurance brokers, reinsurers and wholesale brokers/managing general agents.

At R&R, the employees feel strongly about their workplace, including Human Resources Director Nora Hauser.

“The energy at R&R Insurance Services is palpable,” Hauser said. “The people here make all the difference in ensuring that this company is one of the best places to work.”

Business Insurance® is dedicated to honoring employers that have created an environment in which people thrive and enjoy their work. This award proves that R&R has not only served the insurance needs of southeastern Wisconsin, but also the needs of their employees in creating a great workplace.

Click here to learn more about the current Career Opportunities at R&R.

If you retired, died, or became disabled today, who would own and manage your business tomorrow? Would you want your business interest retained for a family, sold, or liquidated?

A Buy-Sell Agreement controls what happens to the company stock upon the occurrence of a triggering event such as the death, retirement, or disability of a shareholder. A Buy-Sell Agreement, which is a contractual agreement between shareholders and their corporation or between a shareholder and the other shareholders of the corporation, is the center of a business continuation plan.

There are 4 key factors to consider when creating a buy-sell agreement with your stockholders:

1. Type of Business (S-Corp, C-Corp, LLC, Partnership, Sole-Proprietorship)
   A properly funded Buy-Sell Agreement uses life insurance as a funding vehicle to pay the deceased/disabled business owner's family their share of the business interest. Who owns this policy depends on how many business partners you have and what type of corporation you have (S-Corp, C-Corp, LLC, Partnership, Sole-Proprietorship). Setting this up incorrectly can result in additional tax issues, step-up in basis issues and can even result in the need to liquidate the business immediately whether you want to or not.
2. Type of Agreement - Cross Purchase vs. Entity Purchase
   In a Cross Purchase Agreement, each shareholder owns the life insurance on each other shareholder. In an Entity Purchase Agreement – the life insurance funding vehicle is owned by corporation.
3. Value of Your Business
   Your business’ value is extremely important when establishing a Buy-Sell Agreement. This value should be reviewed every 3-5 years to ensure your family receives the correct amount for your interest in the business. In today’s changing economy, it is important to review your current Buy-Sell Agreement regularly to ensure it is aligned with the value of your business.
4. Funding of Buy-Sell Agreements
   Most businesses don’t have enough excess cash in reserve to buy out a shareholder's spouse upon a unfortuneate demise. The life insurance is earmarked to pay (buy out) a deceased business owner’s business interest, with the funds going to the family. Purchasing life insurance can be a relatively inexpensive way to fund your Buy-Sell Agreement. Knowing that the funds are available when the circumstance arises, reduces anxiety about a family's livelihood and guarantees the proper payout for a spouse.

Any business owner who hasn't had a proper valuation on their business is leaving the fate of the business and the livelihood of their family to chance. R&R offers free business valuation plans as a complimentary service to any business owner wanting more information about their business and how to ensure it’s longevity, and adequate funds for their family’s well-being. The service is provided by attorney resources R&R contracts with – again at no charge to you. Wisconsin businesses should contact Tom Driscoll for more information about business valuation, Buy-Sell Agreements and estate planning.

As we reach the end of the year and the weather continues to get colder, Community Action Agencies face some renewed challenges. From weatherization activity to home health care visits, snow and ice will present employees with slip and fall exposures. Preparing employees for those exposures will reduce the likelihood of a workplace injury.

John Brengosz, our Loss Control Specialist shares 3 slip and fall prevention tips to protect your employees from incidents this season.

A cold weather plan for your facility should be an integral part of your overall maintenance plan for the building and equipment, as well as part of your emergency response/contingency plan that helps your business respond to and manage an emergency event. Hanover Insurance Group provides these helpful tips for preventing cold weather hazards.

Before the Onset of Winter

Inspect the Building to Ensure

• Openings around exterior walls such as windows, doors, or other openings are sealed
• Equipment penthouses are secured from cold air infiltration
• Louvers are closed or sealed
• Dampers on ducts leading to the outside are closed (if possible)
• Attics and other areas are susceptible to the cold are properly insulated
• Adequate air flow to maintain heat in all areas of the building to a minimum of 40 F
• Roof is in good condition or make repairs as needed

Identify & Align Resources

• Qualified contractor to remove snow and ice from the roof
• Emergency generator
• Fuel supplies for critical operations such as fire protection equipment, processes, or on-site generators
• Snow removal services to ensure access to the property

When a Winter Storm and/or Deep Freeze is on the Way

• Monitor weather reports for information to include power outages, potential damage, access to facilities and prepare for action
• If needed, activate the emergency response team
• Monitor temperatures in areas susceptible to freezing or significant temperature fluctuations
• Monitor snow loads of roofs, especially in areas subject to drifts, and take action as needed
• Clear snow from outside sprinkler control valves and hydrants to keep them accessible
• Prepare for possible power outages
• Remove ice dams

After the Storm

• If needed, conduct a damage assessment and secure resources to complete repairs
• Initiate salvage operations
• If power was lost, make sure you have a plan to bring electrical loads back on line to prevent power surges that could damage equipment

For additional resources on cold weather hazards, contact a Knowledge Broker at R&R Insurance.

No one has ever accused me of being a clairvoyant. Heck, if I had the ability to predict the future, I never would have traveled out to Denver to watch the Packers get pushed around by the Broncos. But every so often, I accumulate enough information to make an educated guess on future events. That includes events that could change the worker’s compensation landscape in Wisconsin.

Proposed changes to the work comp act are coming in from all directions but there are definitely some common themes that have emerged. From the Governor's budget bill, to the Worker's Compensation Advisory Council's agreed bill, to a potential bill from State Representative John Spiros, it doesn't take an omniscient soothsayer like Carnac the Magnificent to figure out that change is on the horizon. Here's a summary of most of the changes that I anticipate you will see take effect in 2016. These changes will have an impact on your workers compensation premiums going forward.

• The rate paid for permanency due to injuries and surgeries is going up. Look for increases averaging about 6% each year over the next two years. That bodes well for injured workers and the attorneys who represent them.

• Injured workers who are permanently and totally disabled with an injury date of 1/1/2003 and earlier are going to get a raise in the disability benefits they receive.

• Injured workers who are going to school for retraining will be able to work a part-time job up to 24 hours without having an offset on their disability payments. They now have the potential of making more money on worker’s compensation than they were making at the time they were injured.

• Medical providers will now have limitations on what they can charge for medicines dispensed at their offices.

• Medical providers will also have limitations on what they can charge payers for electronic medical records. That limit will most likely be $10 per request.

• An injured worker will have less time to file a claim against their employer. The statute of limitations will move from 12 years to at least 6 years. Maybe even 2 years.

• Permanency ratings for injuries, provided by physicians, will now be offset by pre-existing permanent disabilities and physical impairments.

• Injured workers on light duty who are terminated for good cause based on UI standards will no longer be able to collect Temporary Total Disability (TTD) payments.

• Administrative Law Judges will have the ability to force you to pay for retraining your injured workers when you are unable to accommodate permanent restrictions, even before they have stepped foot in a classroom. This will increase the settlement value of future claims.

So let’s be clear; this is just my speculation. If I truly had the ability to predict the future, I would be sipping pina coladas on a warm beach somewhere right now. But here I am living in Wisconsin and the only thing I know for sure is that it’s going to get much colder very soon. At least I think it will.

If you would like to discuss how these potential changes could impact the cost of your worker’s comp, or better yet, if you would like some advice on how to best position yourself to make the most of these changes, please contact me so that we can discuss further.