R&R Insurance Blog

While cyber insurance policies have been available in the market for years, I find that confusion still reigns as to what these policies cover. This confusion is warranted. The number of different policies available for cyber liability coverage along with an increasing number of endorsements that can be added to policies makes data breach coverage harder and harder to understand.

Here are the 7 Key elements to cyber liability coverage that you should look for in a cyber liability policy:

1. Forensic Expenses:
   You have determined that data has been compromised and need to investigate what happened, how it happened, and what information was accessed. The expenses to hire an outside forensic team for discovery is covered.
2. Legal Expenses:
   You will need legal representation in order to determine the scope of the federal and state notification requirement breaches. You will also need legal counsel to defend you in the event a suit is filed against you.
3. Notification Expenses:
   These expenses can include postage, paper, printing, call centers, etc.
4. Regulatory Fines and Penalties:
   What more can I say? The government will want, and get, their pound of flesh.
5. Credit Monitoring and ID Theft Repair:
   While not legally required, it is generally agreed that offering these services to the affected parties will reduce potential legal liability and is considered the right thing to do.
6. Public Relations Expenses:
   The manner in which the breach is reported to the media is crucial to restoring your reputation and maintaining your clients, vendors, business associates, partners, and patients.
7. Liability and Defense Costs:
   It's not uncommon for class action lawsuits to be filed against you following a breach. You will need legal representation which can be of your own choice or appointed by the carrier. Either way, coverage is available for these costs.

Most policies will include some coverage for all of these components. The limits, deductibles, coverage triggers, and scope of coverage can vary greatly from one carrier to the next. At R&R we believe that securing the right policy for your business is a process. We can help you understand your risks and exposures and craft a policy that meets your expectations.

Related articles:
Average Cost of Corporate Data Breach is $7.2 Million
Transfer Your Cyber Liability Exposure

For more information on how to protect your company against the cost of a data breach or anything regarding cyber liability, contact a knowledgebroker.

With the onset of Obamacare and the need for individuals to make decisions about their own health insurance purchases, I thought it appropriate to share the information we received from the Wisconsin Office of the Commisstioner of Insurance, (OCI).

Taken directly from the press release dated September 3, 2013:
The Wisconsin Office of Commissioner of Insurance (OCI) has completed its initial analysis of rate filings in the individual market.

View Percent Increase Chart published by the OCI.

"While the exchange in Wisconsin will be run by the federal government, insurers wanting to offer coverage in the exchange had to file their rates with OCI. With our review of the exchange rate filings completed, we have attempted to compare what Wisconsin consumers are paying today to what plans will cost post 2014 under the new federal health law," stated Commissioner Nickel. "The truth is that comparisons are difficult because rates are going to vary based on age and where you live."

"With that said, from our analysis, it appears premiums will increase for most consumers. And, while there is no question that some consumers will have subsidies and may not pay these higher rates," Commissioner Nickel continued, "someone will pay for the increased premiums whether it is the consumer or the federal government."

Wisconsin Health Exchanges Offer Slim Pickins

How to Get, or Keep, Health Insurance if You Are Self Employed

5 Mistakes to Avoid When Buying Individual Health Insurance

7 Tips on How To Pick The Best Individual Health Insurance Coverage

Wisconsin residents: for more information about Obamacare, PPACA or individual health insurance, please contact knowledgebroker Jane Shevey.

Join our group on LinkedIn: Obamacare: Strategies for Business to Survive. We welcome you to join in the conversation with our LinkedIn group dedicated to discussions for business owners on Obamacare: Strategies for Business To Survive. Read articles, download documents, join the conversation, and add your expertise!

September being Life Insurance Awareness Month, it's a great time to share this very cool mosaic of uploaded loved one photos. It's growing day be day with the world's uploads!

Lifehappens.org is a great resource for learning about life insurance, options for estate planning, and stories that will pull at your heart and really get you thinking about how well your family is protected.

There’s a growing crisis of too many Americans not having adequate life insurance protection. According to the industry research group LIMRA, 30 percent of US households have no life insurance whatsoever. Today there are 11 million fewer American households covered by life insurance compared with six years ago. Here’s the bottom line: A majority of families either have no life insurance or not enough, leaving them one accident or terminal illness away from a financial catastrophe for their loved ones.

Here are some great resource links to get you started:

Life Insurance 101

Life Insurance Needs Calculator

Human Life Value Calculator

82% of mid-to-large size employers surveyed in a recent Towers Watson survey will continue to view health care benefits as a key element of their employee’s compensation in 2014. Despite the impending Obamacare mandates and ACA excise tax - known as the Cadillac Tax - employers continue to value health insurance benefits.

As employers move forward they will be looking to keep their plans affordable and viable - maintaining a sustainable plan amidst cost increases (5.2% increase projected for 2014). Full article on Towers Watson survey results.

Wisconsin based employers are considering a self-funding approach or adding additional voluntary benefits such as dental, vision, life insurance and disability insurance to offset any changes they may be implementing.

We've always known that offering quality health insurance coverage is a critical part of remaining competitive in today's talent marketplace. This news is just a reiteration of what I am seeing on the street when I talk to my customers and prospects. Smart, educated decisions moving forward will help curtail any pain PPACA might inflict.

For Wisconsin employers interested in self funding options or voluntary benefits for their plans, please contact me.

Held each September, Life Insurance Awareness Month is an industry-wide effort that is coordinated by the nonprofit LIFE Foundation. The campaign was created in response to growing concern about the large number of Americans who lack adequate life insurance protection.

Roughly 70 million adult Americans have no life insurance, and 11 million households with children under 18 have not life insurance. To top that off, most of those who dohave life insurance have far less coverage than most financial experts recommend.

For more information on life insurance, visit LIFE’s website at www.lifehappens.org. In addition, they have a very cool mosaic going on with "Insure Your Love" that is worth a look!

Two main reasons for taking care of life insurance when you are younger:

1. You are just that - younger! Premiums are based on age and health - take advantage of your youth
2. You are healthier - again - take advantage of that

Most mid-life people I know really regret not taking care of their life insurance when they were younger. If they had, they would have saved themselves a lot of money!

For more information about life insurance, estate planning, business continuation and annuities, contact knowledgebroker Tom Driscoll.

Can you ensure your response to an employee’s request for Family Medical Leave Act (FMLA) is appropriate, consistent, and includes the appropriate certifications? Have you educated and informed your managers about their role and personal responsibilities in following FMLA guidelines?

Here are key elements of the Family Medical Leave Act that you and your managers should know:

• The 3 Critical Areas Affected by the New FMLA Regulations
• New Obligations for Military Leave Amendments
  1. Military Caregiver Leave: Clarifications to the Existing Leave
  2. Qualifying Exigency Leave: Understand the New Leave Provisions
  3. Non-Military Family and Medical Leave Issues Eligible Employees
• Definition of a 'Serious Health Condition' under the New Provisions
• Medical Certification Dos and Don'ts
• Intermittent FMLA Compliance:
  • Who is Eligible?
  • What Employers Can Require?
  • Employer Rights
  • Recognizing FMLA-related Leave Requests
  • Lessons Learned from Court Cases
• Handling the 'Bermuda Triangle' - the Interplay Between the ADA, FMLA, and Worker's Compensation
• Curbing FMLA Abuse
  • What You Can - and Cannot Do - When Investigating Potential Abuses
  • Strategies to Minimize Abuse

Get the practical advice and compliance guidance you need to avoid mistakes and protect your company from FMLA lawsuits. Wisconsin companies looking for more information on the FMLA, please contact knowledgebroker Jane Shevey.

Employers have a 1 in 3 chance of being the target of an employment related action for every 100 employees. Private and small companies are even more vulnerable as many have less HR resources, think of themselves as “family”, and generally pay less attention to potential risk areas. In 2012 the EEOC received more complaints than any previous year. They have increased their budget by 20% to increase staff to handle the pure volume of complaints being filed. Regulators have become more aggressive in enforcement at both the federal and local level.

The top four complaints being filed against employers:

1. Age related discrimination
2. Retaliation (at an all-time high)
3. Sexual Harassment (account for 25-30% of all complaints)
4. Wage and Hour

It is important for employers to realize that the EEOC is looking at every charge for a pattern of behavior. A single complaint can easily balloon into a much bigger problem. Recently, St. Mary’s Hospital in Madison, WI agreed to settle a class action lawsuit alleging that the hospital failed to pay 1,400 nurses for meal breaks when they had to stay at the hospital on call.

In the broad context of wage and hour issues, allegations include misclassification of employees as exempt to avoid overtime pay (i.e. sales personnel), not paying for the time spent donning or removing of gear, booting up computers, preparing for the work day, etc.. and the use of mobile devices to access voice mail or email off hours without compensation. The 4^th district Court Appeals ruled recently that Tyson Foods must pay back wages for the time spent putting on and taking off gear that can include hair nets, hard hats, shoe covers, safety glasses and frocks. The back wages could top more than $1 million.

Looking into the future, employers should be aware of the potential claims concerning obesity and corporate wellness programs. The American Medical Association recently classified obesity as a disease. Is this a precursor to becoming a protected class? The challenge for employers is being able to show that an applicant or employee cannot perform the job duties rather than the impact that an obese person can have on health insurance, sick time, and productivity. With regard to wellness programs employers are advised to be careful that individual’s privacy is protected, that they are not being judged /monitored and that employment decisions are not being influenced by an employee opting out of participation or following recommendations.

The average cost to defend against an employment action brought by a single plaintiff that is ultimately dismissed is $150,000. Costs for complex and class actions can skyrocket and have a huge financial impact to any employer regardless of industry. Employment Practices Liability insurance should be a part of the insurance program for all employers. Taking time to understand the policy, the obligations of both the employer and carrier, and what to do in the event of a claim is time well spent. Odds of becoming the target of an employment action are on the rise.

For more information about Employment Practices Liability Insurance for your Wisconsin company, contact a knowledgebroker.

Related topics:
Corporate wellness programs

The IRS has issued a revised Form 720 (Quarterly Federal Excise Tax) that now includes a section for reporting the Patient-Centered Outcomes Research Institute (PCORI) research fees, also called the Comparative Effectiveness Research (CER) fees. The PCORI fee is listed in Part II of the form, IRS No. 133.

The first due date of these research fees (for some employers) was July 31, 2013.

The Affordable Care Act (ACA) includes a "research fee" that plan sponsors, including HRA plan sponsors, must pay on an annual basis. The research fee is referred to as the Patient-Centered Outcomes Research Institute (PCORI), or Comparative Effectiveness Research (CER) fee.

The ACA imposes this fee on insured plans and self-insured health plans, including HRAs. The research fee is temporary; it applies to plan years ending on or after October 1, 2012 and before October 1, 2019.

Applicable employers are required to report and pay the PCORI research fees annually via Form 720, due by July 31 of each year.

For more information about self-funding your health insurance plan, health care reform or basic employee benefits questions, contact knowledgebroker Les Kitzman.

Humans aren't the only ones facing skyrocketing healthcare costs. The price of veterinary service continues to rise which may make buying pet insurance worth the premiums.

There are 3 basic types of pet policies:

• Accidents only - average monthly premium $20
• Accidents and illnesses - average monthly premium $40
• Wellness (checkups) and accidents - average monthly premium $75

The best candidates for pet insurance may be owners of a pet that has a higher risk of getting hurt or sick, and minimal bankroll to spend on pet bills. It ends up being risk management against a serious accident or illness. If you are going to look into coverage for your pet, ask these questions when shopping:

1. What is and isn't covered?
2. What are the co-insurance charges? Are you able to choose the deductible you want?
3. What are the coverage limits per year, incident, and lifetime?
4. How are pre-existing conditions handled?
5. How and when are claims reimbursed?

While you're in charge of deciding what options are best for your beloved pet, let us help you review what is best for your home and auto insurance protection by contacting us.