R&R Insurance Blog

If you are considering becoming a rideshare driver, this provides great insight into when and why you have no coverage.

There is a void between the time one’s personal auto insurance policy stops providing any coverage and the time the commercial auto policy starts. If there is ever an incident that occurs during this gap, drivers could find themselves left to pay for all damages on their own.

This gap exists because of the rapid rise of Transportation Network Companies (TNCs) like UberX, Lyft, and Sidecar. They have gained in popularity and spread throughout the US so quickly, that the insurance industry and lawmakers have not had the time they require to methodically update the policy language or laws. Revisions are required to better manage the new risk.

There are three distinguishable risk periods in the TNC business model. Period I is when the driver turns the mobile application on, logs in, and is waiting to be matched with a passenger. Period II is when a passenger has requested the driver’s services and the driver agrees – a match is made. Period III is when the passenger is in the vehicle with the driver, and they are en route to the desired location. So, when exactly does the driver of the private passenger vehicle become a transporter?

Personal insurance carriers argue that the instant the app is turned on, the driver is now working for the TNC – coverage ends at the start of Period I. The TNCs argue that the driver does not begin working until a match is made – coverage begins at the start of Period II. And therein lays the gap. Neither the personal insurance carriers nor the TNCs want to offer any coverage during Period I.

The traditional idea of carpooling and sharing the gas expense with a friend on a road trip does not present any problems to a personal auto policy. However, there is a dilemma when the driver is no longer sharing expenses but making a profit by delivering passengers or goods. This is because almost all personal auto policies have a specific exclusion for the transportation of goods or passengers (Livery Exclusion). Personal insurance providers have this exclusion because there are increased risks and claims that are associated with livery exposures, such as distracted driving, commuting in congested traffic, and additional mileage.

This exclusion, by definition, means that the very second the UberX or Lyft driver turns on the mobile app to find a passenger, the coverage from the personal insurance policy disappears. To make it even clearer, many insurance carriers are revising their policy language to specifically exclude coverage during all periods while the driver is working for a TNC.

The TNCs, on the other hand, view their drivers more like contractors than employees and do not believe that the driver has become a transporter in Period I. Their interpretation is that the driver is only hired to complete a job when a match is accepted. If there is no match, then there is no contract, and, if there is no contract, then the full insurance coverage is not in place.

In addition, TNCs are concerned with drivers unintentionally and intentionally turning on the app and not accepting any matches. They do not want their commercial coverage to become a substitute for personal insurance. It is on the other side of the coin, but again, there are increased risks and claims that the commercial insurance providers do not want to be held accountable for.

Still, some TNCs may provide lower limits of liability coverage only (bodily injury and property damage done to others) during Period I. However, these limits could easily be inadequate for serious accidents, and there would be no physical coverage for the vehicle.

So, for now, if you are considering becoming a rideshare driver, you will want to 1.) verify adequate coverage with the TNC, and 2.) be extremely cautious during Period I. Otherwise, if there is a claim, you could find yourself all alone. If you have additional questions, contact a knowledge broker at R&R insurance!

Growing up, my mother would test the patience of my father with a common statement, “If there’s checks in the checkbook, there’s money in the bank.” While I’m not certain if my mother ever bounced any checks, I am certain that my father didn’t find humor in my mom’s lack of ownership with managing money.

This same notion of, “If there’s checks in the checkbook, there’s money in the bank,” is one that my wife had with healthcare spend. Now I do need to make a disclaimer, my wife is a very intelligent woman who manages our finances extremely well and is a disciplined, frugal spender, yet when it comes to the money we spend on healthcare, her keen sense to where each dollar is spent goes right out the window.

The blame here, though, isn’t on my wife; it lies solely, square on my shoulders. As an Employee Benefits Consultant, it’s my job to understand healthcare spend. It’s my job to teach other people where their dollars are going. And it’s my job to promote consumerism in healthcare. There’s an adage that you should leave work at work, yet I don’t think the meaning was intended to ignore the realism in exerting your strengths when they support your home life.

For years, I have made our family’s annual benefit elections and just told my wife if there was a change. For years, I let her take the kids to the doctor and I managed the EOB’s (explanation of benefits) and doctor bills. And for years, my wife and I never talked about our healthcare spend. True ignorance on my part and a disservice to our family, my wife, and the notion of practicing what I preach.

Acknowledging that I missed the mark, this open enrollment, we tried something different – I didn’t make the decisions regarding the healthcare for our family, rather, my wife did. Sure, I had done the math, examined whether our company funded HSA or HRA would best suit our needs, and I came up with a suitable selection for our family, yet if I am truly going to get my wife engaged into where our healthcare dollars are going, it starts with the ownership of making our benefits selection.

As expected, my wife put on her “frugal spender” hat and dove right in. She forecasted our Brady Bunch like family (3 boys + 3 girls + My wife and I – the Alice) expenses and calculated estimated costs for what for sure needs to be medically accounted for and the “what if’s” of healthcare spend. Once her due-diligence was completed, we regrouped and had a really good conversation about, of all things, healthcare. Our decision was made together and started additional discussions about our healthcare spend and maximizing our consumerism.

So what did this teach me, to enhance what I excel at, communication. Having the support of my company, R&R Insurance, behind me, we developed a 12-step progressive communication process (12-PCP) which gets families talking about healthcare spend with a true focus on consumerism and maximizing both employer and employee dollars disbursed on healthcare.

I invite you to share in our 12-PCP. It’s worked so well for my family that now my wife says, “So, now that we’re interlocked with our healthcare spend and committed to understanding where our dollars are truly going, maybe we can look into completing the Brady Bunch and add an Alice.”

“Sorry, Honey, I didn’t hear you, guess I need to fine-tune my listening skills, too.”

For more information on R&R's Employee Benefits Practice, contact Jeff Sewell or visit www.myknowledgebroker.com/health-insurance.

Have you ever been in a car accident? Did you feel prepared for what steps to take? Was there anything you forgot to do?

As a CSA in our Personal Lines Department here at R&R, I frequently assist clients after they’ve been in a car accident. Unfortunately, I was recently in one myself and learned what it’s like to be on the other side of the phone. Being the client was a great reminder about what steps someone should take immediately following their accident. I encourage you to keep these tips in mind, and never hesitate to contact your knowledge broker for more information.

• Safety First! Make sure yourself or the other party is not seriously injured. Call for medical assistance, if needed. If cars can be moved out of the road to a shoulder or side street, try and do so to avoid another potential accident. If they cannot be moved, stay in your vehicle with your seatbelt on. Don’t forget to put on your emergency flashers!

• Call the police. They can help get tow trucks, direct traffic out of the way, and can file the policy report right there. Having a police report on file for your insurance claim will be very helpful down the road.

• Don’t discuss fault with the other driver or a police officer. Leave it up to the officer and insurance companies to determine it. Just explain what happened so the police can document it on their reports, don’t admit fault or place blame on the other driver.

• Gather information. Take a picture of the other party’s insurance card and driver’s license if you don’t have a pen and paper available. Make sure to get their name, phone number, license plate number, insurance carrier and insurance policy number. If possible, take some pictures of the damage done on both vehicles.

• Witnesses. If there are any witnesses at the scene who have stopped to help, get their information as well. It may be important in helping determine who is at fault later on.

• Call your insurance agent. It may take around 10 minutes to get the claim started, so make sure you’re in a safe place and out of traffic to do this. If you are in need of a tow truck or a rental car, they can help you out with that as well.

• Seek Medical Attention. It may take some time before you realize that you've been injured. Once the shock of being in an accident wears off, you might realize you’re swollen or sore in places. It doesn’t hurt to get checked out by a doctor. Make sure that your doctors document everything, in case your pain gets worse later on.

Contact a knowledge broker for more information on car accident safety.

Started in 1975, R&R Insurance Services has organically grown into one of the largest independently owned insurance agencies in the country.

Headquartered in Waukesha, R&R serves clients from its six offices throughout Southeastern Wisconsin. With three children by his side as equal owners, President Ken Riesch’s vision for the future continues to be the inspiration for growth and expansion into additional communities throughout the Midwest.

With the unique combination of resources and experiences typically found in larger consulting firms, R&R has delivered the professional services, commitment, flexibility, and personal touch of a smaller firm for the last 40 years. Bringing a local, face-to-face presence with a tremendous amount of knowledge and innovation, we continue to pride ourselves on providing exceptional service to both our clients and the community.

“I am incredibly proud of our organization and all those who have helped us grow over the last four decades,” says Ken. “We are continually investing in our professional services and the communities in which we live and work, and are excited about the future more than ever before.”

As R&R celebrates this milestone, we cannot help but look forward. The energy and excitement that stems from our associates is what drives us to dream big. We extend our sincere appreciation to those who have worked for us, worked with us, and been our partners through the years.

We look forward to growing our family and business alongside yours for the next 40 years and beyond.

Click here to see our feature in the Milwaukee Business Journal.

The advancements in car safety features over the last few years have been tremendous. From automated braking and back-up cameras, to alert systems and running lights, “car safety” has taken on a whole new meaning.

While the majority of these features can be life-saving, they also offer a great deal of cost savings as well. Many insurance companies offer discounts to drivers whose vehicles are equipped with certain safety features. The USAA provides insight into a few of the most common features available:

1. Back-Up Camera. Once a luxury vehicle standard, the backup camera often displayed in the rearview mirrors or in-dash display is now a popular option on midrange cars, giving drivers assurance when backing out of a parking spot or down a driveway.
2. Automatic braking. If the driver doesn't respond to the warning, some systems are able to brake automatically to prevent a collision or lessen the impact. Systems that combine forward-collision warning and auto-brake are the most effective.
3. Adaptive headlights. This innovative technology, which allows drivers to see better as they round a curve, surprised researchers with how well it performed. According to Highway Loss Data Institute research, property damage liability claims fell as much as 10 percent with adaptive headlights.
4. Sideview assist. Sensors can detect a car in your blind spot and then alert you with a light in your side mirror or with a beep if you engage your turn signal.
5. Forward collision avoidance system. Using the same forward-looking sensors, these pre-crash warning systems alert drivers with visual or auditory cues when the vehicle is getting too close to the one in front.

To learn more about car safety features or to find out how they can positively impact your auto insurance, contact one of our knowledge brokers.

When I first applied to become an HR Intern at R&R Insurance, I hoped I would be considered for the position. When I interviewed a few weeks later, the position looked even more promising. As I walked through the office halls to my interview, I immediately felt the cohesive vibe, and was anxious to become a part of this organization. The office aura flowed with productivity and friendliness.

As I sat in the lobby prior to my interview, I noticed R&R had many accolades decorating their walls, and I was astounded. I always knew it seemed like a great place to work, but these awards showed that the employees here thought so too. It wasn’t until after I got home from my first day of work that I fully understood why this company had achieved so many awards. R&R employs quality people who care for each other and the company they work for. If employees are happy and devoted to the work they do, then the company will flourish from the inside out, just as R&R has done successfully for many years.

On my short drive to the office for my first day, I didn’t feel as nervous as I expected I might, and looking back, I think it was because the members of R&R are so compassionate and welcoming. Although I undoubtedly wandered around looking like a lost puppy, the other people in the office – my new co-workers – wasted no time in coming up to me and introducing themselves. Their smiles made me feel comforted in this new environment.

I am extremely grateful for the opportunity to intern at R&R because it provides me with a view into the internal workings of a prosperous and lively company. Since I have only just finished my first year at UW-Madison, I have never been on the inside of a company before. I am so thankful my first experience in the working world has been in a place where I don’t feel like a lowly intern, but instead a valued employee. All of the employees I’ve met so far have included me on the little things, like a discussion at lunch or snacks for a retirement celebration. Each one of these actions demonstrates the inclusiveness that I’m sure every employee feels when they become a part of the R&R family.

I have learned so much more than I expected I would, and my time here is not over. I have learned that each employee is a part of the bigger picture and is necessary to guarantee that the company runs smoothly. No job is irrelevant, and each employee is valued. I have learned that working hard doesn’t always mean working quickly, but rather diligently to make sure that the tiny details are correct. Lastly, I have learned that the character of the company is a reflection of the employees working within, and that the entire company needs to have an atmosphere that is simultaneously friendly and productive. The leaders and managers of a company are only as strong as the people they employ. I can confidently say that I have witnessed a cohesive connection between all employees here and I know that R&R will continue on their path to even more success in the future.  

About the author: Emily is an R&R Insurance intern learning about the insurance industry through HR and Marketing experiences.

Wisconsin statutes allow sole proprietors, partners or members to elect to cover themselves by a workers compensation policy. Officers of corporations (with fewer than 10 stockholders) are automatically included for coverage, but up to 2 officers may exclude themselves from coverage.

Before you decide to exclude yourself from workers compensation benefits, it is a good idea to check your health insurance and disability insurance policies to be sure a work-related exclusion does not exist. Policies are not uniform in how this language reads. Insurance policies will commonly exclude any loss that’s covered by workers compensation. Some will state that the exclusion does not apply if workers compensation is “available” or “payable” to you.

Workers compensation benefits not only pay for medical expenses but also income replacement in the event you are unable to return to work either on a short-term or long-term basis. Those excluding themselves from workers compensation may want to consider disability insurance in addition to health insurance to address both aspects of work-related injuries.

It is important to address this question with your health and/or disability insurance provider so any gaps in coverage may be addressed in advance. Once you are excluded (or have not elected to be covered) from the workers compensation policy, work-related injuries and illnesses will not be covered. It’s important to know how your health or disability policy will respond to a work-related incident.

Please contact your R&R Knowledge Broker if you have any questions or would like to discuss further.

As the cost of providing health care benefits continues to skyrocket, analyzing your benefits program is a great opportunity to see how you stack up against others in your industry. An attractive benefits program is vital for your recruiting and retention efforts, and is also a significant expense. To ensure you are providing a package that is both competitive and economical, you need to know how your offerings compare to those of other employees in your industry.

The first step to successful benchmarking is to identify different aspects of your benefits and choose which are most costly and which are most important to your business's success. There is information available for almost any aspect of a benefits program, from total costs and plan design, to paid leave and workers' compensation.

Click here for a free download on the importance of benchmarking, or contact a knowledge broker at R&R to see how you measure up against the competition.

As outlined by Payments Source, unprepared merchants may be at risk for significant loss to their bottom line if they suffer a data breach.

All merchants that accept, transmit, or store credit card holder data are subject to the Payment Card Industry Data Security Standard (PCI DSS). These security requirements were launched on September 7, 2006 to ensure that merchants maintained a secure environment for data. Any and all merchants that have a Merchant ID (MID) are subject to these regulations.

A new revision to these security standards takes affect at the end of June 2015. In short, merchants will need to change the common SSL (Secure Socket Layer) protocol to a more secure version of TLS (Transport Layer Security). E-commerce merchants will need to configure Web servers to work with TLS and turn off support for SSL, while brick-and-mortar businesses may need to update their payment applications.

For those merchants that are unprepared there is a significant risk for fines and penalties if they were to suffer a data breach. A security engineer for Trustwave Security told Payments Source that the fines and penalties could range between $100,000 and $500,000. In addition, penalties may include breach expenses ranging from $50,000 and $100,000, a $50 re-issuance fee per compromised card, and a $2 per customer for credit monitoring. These penalties are in addition to a wide variety of expenses to comply with breach notification laws.

While cyber and data breach insurance policies will include coverage for breach notification expenses, credit monitoring, and ID theft repair, many (but not all) policies provide coverage for PCI fines and penalties. At R&R, we can customize a policy to fit the needs of your organization. Contact a knowledge broker to make sure you are prepared.

More often than not, people are sued and have no extra protection to block the plaintiff from going after their personal assets in the lawsuit. To protect yourself from such a quandary, you need to have an umbrella policy. Every day ordinary citizens are served with a lawsuit, with the reasons ranging from justified to frivolous. A Personal Umbrella policy will help protect your assets from this lawsuit.

An umbrella policy is designed to protect you from almost everything that your home and auto insurance does not, as well as fill in gaps in coverage when the limits of your regular policy are exhausted. An umbrella policy is often referred to as excess liability. This excess liability coverage kicks in when the underlying limits on your home or auto policy have been exhausted. Depending on the company, you can purchase anywhere from 1 to 5 million dollars worth of excess coverage, sometimes as high as 25 million.

Most insurance companies will not offer you the coverage unless you have both your home and auto already insured with them. Also, the insurer will require that you maintain a certain level of liability on the home and auto policies in order to qualify for the umbrella policy.

The coverage is inexpensive. It is possible to obtain $1 million worth of excess liability for as little as $15/month. The more cars and homes you have, the higher the price for the insurance, but the cost is still low. In addition to your home and cars, liability associated with any other conveyances you may have, such as boats, motorcycles, and other recreational vehicles, may also qualify for coverage under the umbrella, depending on the insurance company.

Umbrellas often times pick-up miscellaneous coverages such as Personal Injury. This includes false arrest, false imprisonment, malicious prosecution, defamation, invasion of privacy, wrongful entry, or eviction.

Please feel free to contact a knowledge broker for more information on umbrella policies.