R&R Insurance Blog

As risks change, manufacturers change their insurance purchasing habits.

Supply chain disruption, labor shortages, a global pandemic, state sponsored hacking. These shifting concerns over the last two years have contributed to an aggregate trend of manufacturers choosing to insure more risks than prior to COVID-19. Monitoring these purchasing changes along with rate differences was the focus of a newly released 2022 Benchmarking study by Assurex Global.

The 2022 Manufacturing Benchmark Report surveyed over 1,200 manufacturers of varying sizes and industries representing over $79 billion of revenue and 92,000 employees. Assurex Global is the world’s largest privately held insurance brokerage group of which R&R Insurance is a proud member. 

A summary of the report’s key findings can be found here while some notable trends from the full 79-page report are posted below. Request the full report here.

Manufacturers are buying more excess liability insurance policies, especially Cyber

Assurex analyzed data on over 800 manufacturers in 2020 and over 1,200 in 2022. Some of the most striking differences between the reports is how many of these firms carried standalone excess liability policies on certain lines. The results show an increase in excess liability purchases across the board, but especially in cyber.

Cyber risk is becoming obvious to the Manufacturing Industry. There is a sizable 20-point pickup in standalone Cyber insurance policies compared to Assurex’s 2020 Manufacturing Benchmark Report.

Other excess liability insurance policies are being picked up at a greater rate by manufacturing business, though not to the same degree as cyber. Most surprising to Assurex was that despite increasing supply chain disruption, International insurance only picked up a few points compared to 2020.

Small Manufacturers are Paying Much Higher Liability and Property Rates than Large Manufacturers

With tangible goods it's generally cheaper to buy in bulk, but when buying an intangible insurance policy does the same principle apply? Even though the level of risk doesn’t change it’s surprising to see such a large gap in liability and property rates between small and large firms. Small manufacturers are paying dramatically higher rates than larger firms.

The reason for the difference likely has to do with larger firms taking on higher deductibles to achieve lower rates. This is especially noticeable in property (see image below). Never the less, a doubling of rates at just about every level of account size measured is still a greater difference than what many experts might suspect, including Assurex.

Larger Organizations Tend to Purchase Significantly Higher Excess Liability Limits than Smaller Ones

It isn't that surprising to see a direct relationship between revenue and the propensity to purchase greater excess liability limits (umbrella policies). The greater the revenue of a manufacturer, the larger their excess liability limits they tend to purchase. 

While the trend does seem predictable there is an area of concern. Though a minority, there are a disturbing number of manufactures with more than $40 million in revenue only purchasing $5 million or less in excess liability limits. In an increasingly litigious society, this seems incredibly risky - yet 19% of $100M+ manufacturers and 29% of $40M-$99.9M manufacturers are in this category.

Further Breakdowns Available In The Full Report

Click here to find the full 79-page Assurex Global 2022 Manufacturing Benchmark.

The report details further additional excess lines such as D&O Insurance, Auto liability and Employee Benefit trends. Industry break down also is detailed for Furniture/Wood Product Manufacturing, Metal Manufacturing, and Machining/Equipment Manufacturing.

Insurance purchasing is a complex decision for any business. With the pace of new business risks emerging it is becoming more important than ever to have the right data on hand when making insurance spend decisions. Click here to see a list of R&R Insurance Consultants specialized in the manufacturing space and ready to answer the growing number of questions in today's dynamic landscape.

 

Each February, awareness around heart disease occurs. The goal is to urge our population to reduce risk factors associated with developing cardiovascular disease because it remains the number one killer of both men and women.

In fact, according to the American Heart Association, every 80 seconds, one woman is killed by heart disease or stroke—which is more than all forms of cancers combined.

Individuals need to make their heart health a priority. Scheduling a visit with a healthcare provider for a preventive check-up, measuring blood pressure, checking cholesterol and looking for all signs of illness are all vital components.

There are dozens of ways to spread awareness around heart disease to your employees but, please consider these two:

• Risk of Heart Disease Quiz
• Heart Disease Infographic

Let's begin to have the conversations about just how important heart health is.

It is officially the New Year! Maybe you are an individual who has chosen to make specific New Year’s resolution(s). That is fantastic that you want to attempt to make a change; however, you do not need to wait until the New Year because resolutions made at that time have a higher chance of failure.

Approximately 156 million people will give up on their resolution in the New Year.

Why do New Year's Resolutions Fail?

• Lack of determination
• Setting a goal for an unrealistic outcome
• Not planning ahead—making the resolution on a whim
• Being too critical
• Having an all or nothing mentality
• Having the goal last too long
• Not tracking progress
• Missing the benefits of the process

Overall, most New Year’s resolution goals are not thought out, properly, which means there is a higher chance of failing. If you really want to make a change, do not feel forced to set that intention at the New Year, but rather enjoy the process when you want to.

Remember, to set an appropriate goal it should follow the Specific, Measurable, Attainable, Realistic, Time Sensitive (SMART) objective. That way there is a goal with a realistic timeframe and path to progression, which will lead to a higher success rate of achievement.

Happy New Year!

The Occupational Safety and Health Administration's (OSHA's) vaccine-or-testing Emergency Temporary Standard (ETS) is back on again. 

On Friday, December 17^th, the Sixth Circuit Court of Appeals lifted the stay of OSHA's emergency temporary standard (ETS) requiring private sector employers with at least 100 employees to ensure workers are either vaccinated or tested weekly and wear masks. With the stay lifted, employers must comply with the requirements outlined in the ETS.

Click here to download R&R Insurance's summary of reinstatement with important dates for employers.

In response, OSHA stated that it “will not issue citations for noncompliance with any requirements of the ETS before January 10 and will not issue citations for noncompliance with the standard’s testing requirements before February 9, so long as an employer is exercising reasonable, good faith efforts to come into compliance with the standard. OSHA will work closely with the regulated community to provide compliance assistance.” 

KEY TAKEAWAY ON THIS CHANGE: Affected employers now have until January 10^th, 2022 to comply with the requirements that were initially slated to begin on December 6^th, 2021. Also, weekly testing requirements for unvaccinated employees with an original deadline of January 4^th, 2022 is now delayed until February 9^th, 2022.

ETS opponents have already filed an appeal with the U.S. Supreme Court challenging the Sixth Circuit’s decision. R&R will continue to monitor developments and provide you with updates and resources that pertain to these compliance requirements as they occur. For more information and resources, click here to navigate to our dedicated OSHA Vaccine Mandate Compliance webpage.

Click here to view the full Sixth Circuit Court of Appeals opinion to dissolve the stay order as well the dissenting opinion.

Thanksgiving has officially come and gone. The holiday is typically a time where we reflect on things in our life we are grateful for. However, why should we limit gratitude to just one day? Let’s keep it going past the holiday season because gratitude has specific health benefits and effects—that those around us and ourselves included need.

The power of positive thinking can be make such a difference. A research study indicated that a group was instructed to write five things they were grateful for once a week. After ten consecutive weeks, the experiment showed that the individuals also increased their daily exercise time and were more likely to attend regular health check-ups than those who did not participate in the journal reflection.

What are ways you can bring gratitude to your life past the holiday season? We’ve listed some options below:

• Utilize a gratitude journal
• Practice meditation
• Write or verbalize three things you’re grateful for each night
• Smile more often
• Notice nature’s beauty
• Post positive quotes or images
• Focus on your strengths
• Volunteer

It is important to remember that reflecting on gratitude can be big or little things. Whatever it is, allow yourself a moment to enjoy the positive experience despite any negative feelings. You can’t escape stress, but you can shift your perspective.

Happy Holidays!

“We’re Hiring: Less than 100, NO Vaccine Required,” is the latest lawn sign spotted in a Wisconsin industrial park.

The ramification for companies employing over 100 individuals by the OSHA Emergency Temporary Standard & Vaccine Mandate are beginning to unfold. Regardless of the fact that the ETS is momentarily tied up in the courts, HR and leadership teams are watching a ticking clock on new regulation deadlines and are beginning to fix their attention on the situation.

On November 11^th, R&R Insurance hosted a webinar featuring Michael Best attorney, and OSHA specialist, Chuck Palmer. The webinar attracted over 300 c-suite individuals who asked a total of 90 questions. Below are 10 of the best questions asked during the webinar.

For a more comprehensive compliance guide to the OSHA ETS, see the HR Vaccine Compliance Guide from Best Workplace Solutions, which will be continuously updated as the regulations change.

 

Q: Does the standard only apply to full time employees or do you need to include seasonal and part time employees in your count?

A: When calculating the total number of employees, you need to include seasonal and part time employees. If you were at 100 employees on November 5^th, 2021 but drop below that number, the standard still applies to your organization. If your organization was under 100 employees on November 5^th but afterward grows, the standard applies once your organization reaches 100.

 

Q: Does the standard apply to multiple entities with common ownership?

A: Yes, if the organizations share common safety management.

 

Q: Can an unvaccinated employee test using an at-home test kit? Are COVID-19 antigen tests acceptable by the standard?

A: An at-home test kit is considered acceptable, but it has to be proctored by a third party or the employer. The employee cannot self-test and self-verify. COVID-19 antigen tests are considered acceptable.

 

Q: Does the employer need to keep a record of unvaccinated employee testing?

A: Yes. Should OSHA request it, the employer would be required to produce proof. This needs to be kept as a confidential medical record, possibly as long as 30 years.

 

Q: Is there a maximum penalty for non-compliance?

A: There is a maximum penalty for each individual, but no maximum for the number of violations.

 

Q: Are employees working remotely at home excluded from the vaccine, testing and masking requirements? Are employees working exclusively outdoors excluded from the vaccine, testing and masking requirements?

A: Employees exclusively working from home are excluded from vaccine, testing and masking requirements. Employees working exclusively outside are also excluded from the requirements provided they are inside for only a “de minimis” amount of time. “De minimis” is not defined in the standard, but likely refers to 15 minutes.

 

Q: Are employers required to keep a copy of the vaccine card?

A: Yes. Should OSHA come on site and request it, you would need to produce a spreadsheet of vaccinated and unvaccinated employees within 4 hours.

 

Q: Are local government municipalities subject to the mandate? Public schools?

A: No

 

Q: If you work in an office environment and you are not vaccinated, does the standard require you to wear a mask at your desk?

A: If you have walls and a door (office) you can remove the mask. If you are in a cubical, you would need to keep a mask on.

 

Q: How is a religious exemption documented? Are religions treated differently by the standard?

A: We would suggest you use the government’s own religious accommodation forms (EEOC). To claim a religious exemption requires a deeply held religious belief and is not dependent on the religion.

 

Click here to view the full November 11^th webinar featuring attorney Chuck Palmer hosted by R&R Insurance Services, Inc. Many more questions are addressed in the webinar.

We all know that financial stress can be a burden, but it can also have a negative effect on your health. Understanding the relationship between financial and physical wellness can help you improve both areas of your life.

In fact, employees who struggle from financial stress are often more likely to have less focus at work, an unhealthier lifestyle and higher medical costs.

 

Financial problems are consistently rated among the highest source of stress for people, and can cause anxiety, frustration and feelings of hopelessness.

This stress can also contribute to the following physical problems:

• Heart Disease
• High Blood Pressure
• Insomnia
• More frequent colds and minor illness
• Unhealthy habits—such as smoking, drinking and over-eating

Many employees have surprisingly little knowledge about managing finances, so simply offering education can be a huge benefit. If you have a wellness program, work to include the financial component with the overall program.

For more in-depth information on financial and physical wellness and how to recognize the signs of financial stress and ways to cope, click here.

Contact a Knowledge Broker, today, for more information.

Sunday, October 10^th was World Mental Health Day. The COVID-19 pandemic has really highlighted the need for understanding mental health in the workplace. Therefore, now more than ever, employees are seeking mental health resources and understanding from their employer.

As an employer, there are ways you can begin to support employee mental health:

• Promote Mental Health Awareness in the Office: open dialogues and reach out to managers or co-workers if they’re struggling. Don’t make these important conversations taboo.
• Offer Flexible Scheduling: without work-life balance, it can greatly affect employees’ mental health
• Address Workplace Stress: it won’t be possible to eliminate it all, but work with employees to manage stress effectively.
• Evaluate Benefit Offerings: ensure mental health services are being met with various vendors and coverage.
• Train Managers: work to eliminate the stigma around mental health and train managers to recognize the signs of mental illness, stress, fatigue, bullying.

Lastly, the mobile app, Headspace offers a checklist to continue the improvement around how leaders can create a supportive workplace, how to support your team’s wellbeing and how to stay centered and strong for yourself. Check out pages 12-13 for that important checklist.

Let’s continue the dialogue around mental health and show employees they matter and end the stigma!

COVID-19 has changed the world in many ways.  When it comes to mental health in the United States, the CDC reports 31% of adults have had symptoms of anxiety or depression over the past year.

• 13% reported having started or increased substance use
• 26% reported stress-related symptoms
• 11% reported having serious thoughts of suicide in the past 30 days

These numbers are nearly double the rates we would have expected before the pandemic.

Closer to home, according to the American Heart Association, 23% of Milwaukee County adults report having a mental health condition. During this time, it is crucial we take care of our entire well-being but especially mental health.

One thing you can control and take action on, to improve your mental health, is positive self-talk. Dr. Alan Chu, from the University of Wisconsin Green Bay, has three steps to train the brain into positive self-talk: recognize, re-frame and refocus.

1. Recognize the negative self-talk occurring in your mind
2. Re-frame those emotions
3. Refocus to control your own outcome.

There are also apps such as Headspace and Calm that can help with guided meditation and deep breathing techniques. Even 5 minutes a day will make a tremendous difference but remember the key is practice.

 For more in depth mental health information see resources below:

• National Alliance on Mental Illness
• Mental Health Myths and Facts
• Free Mindful Resources
• Alan Chu

In a tight labor market, the inability to find talent could sink a company faster than having workers fall ill due to COVID-19. Yet, employee wellness is still of critical concern to employers. How can organizations protect workers while still respecting employees’ rights to make their own health choices? For many, the answer has been to encourage—rather than to mandate—vaccines through various methods.

What Are Companies Doing?

Getting employees vaccinated is a top priority for many organizations. In fact, it’s so important that companies are charging un-vaccinated employees fees in some cases and firing them in others.

However, any vaccine-related workplace policy comes with inherent legal risks. Employers considering any vaccine policy—whether it’s related to incentives, penalties or mandates—should first consult with legal counsel.

For more information on vaccine surcharges, mandates and incentives, read more here.