R&R Insurance Blog

R&R Insurance is the agency of choice for southeastern Wisconsin schools. Safety plans and risk management programs help to keep the cost of their insurance down. Subjects like playground safety, bullying and staff influencers on work comp claims are example areas where schools can have a direct influence on their premiums. Learn more with this quick video....

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R&R's decades of bonding experience throughout the state of Wisconsin have enabled us to simplify the bonding selection process for our customers. We base our standards off of a simple S.C.O.R.E card.

S = Service: a staff fully dedicated to the daily service of bond needs and a commitment to excellence...24/7 
C = Capacity: we have the expertise and tools in obtaining the most bonding credit available from a diverse portfolio of surety markets
O = Organization: R&R is the largest independently owned agency in the state of Wisconsin
R = Rates: We have the negotiating power with our markets to obtain the most competitive rates
E = Experience: a bond department with more than 30 years of experience and the know how to get the best surety credit available

Learn more about how we use this SCORE card for our bonding customers:

Business owners know that having a trusted advisor network - your attorney, banker, accountant and insurance agent - is very important for making critical business decisions. For owners in the construction industry, it's even more important to make sure that the CPA you choose is someone with an emphasis in construction, or someone at least who has extensive experience in the industry. Watch this quick video to learn why...

In the past, business owners may never have thought they needed to have a bonding program. But with today's economy, tightened restrictions on banks and an unstable marketplace, a bonding program has never been more important.  It could mean the difference between getting a job or being overlooked...learn more in this quick video:

Spring is full of reminders: turn your clocks ahead, replace the batteries in your smoke detectors and file your submission for the Wisconsin Contractors Premium Adjustment Program credit (WCPAP). The attached document offers information on how to submit your payroll data to the Wisconsin Compensation Rating Bureau for consideration. The due date to submit your information varies by your policy's effective date. Please see the FAQ section of the WCRB website to determine when your information is due. For contractors who have policies renewing in summer, your submission is due very soon.

Don't hesitate to contact your agent if you have questions about this process, or if you would like information about your past credit(s).

We have covered a lot of the basics on how to evaluate your business income and extra expense exposure.

The next question is what type of coverage do I choose. Some of the options are:

• Full year or partial year coverage
• How long do you anticipate being down in the worst case scenario?
• Maximum Period of Indemnity
• The coinsurance requirements are removed and replaced with coverage for the actual loss sustained during the first 120 days of loss, not to exceed the stated limit of liability.
• Monthly Limit of Insurance
• A limit of insurance is selected as well as the time-period. The most a carrier would pay is either 1/3rd, 1/4th or 1/6th of the limit selected in each month.
• Extra Expense
• What additional monies over and above your lost income would need to be spent to get you up and running faster?

Additional options that are above and beyond the basic limit:

• Extended Period of Indemnity – available with the full / partial year coverage.
• After your business re-opens, how long would it take to get back up to pre-loss sales? This is your extended period of indemnity. Insurance can cover you for your continued loss sales up to a period of time
• This coverage is stated is a period of time. IE-30 days, 60 days, 365 days or longer.
• The maximum payout would be the business income limit purchased.
• Agreed Amount
• The carrier agrees that values are accurate and will not apply a coinsurance penalty to the claim
• Blanket Coverage
• This is helpful when there are multiple locations and it's hard to determine the impact to all locations when a loss occurs at one location
• Ordinary Payroll Limitation or Exclusion
• Do you want to get paid if you have no income coming in?
• Do you have critical workers that you do not want to lose?
• If the answer is yes, then include this coverage and a payroll amount for a period of time
• Common deductions that can be taken are power, heat, refrigeration
• Selected if you are a high user of energy and the cost will not continue if you have a loss.

Items to consider when completing a business income worksheet include
 Identify the longest possible interruption. “Worst Case”
 Consider peak seasons.
 Consider employment market conditions and training of new employees or loss of key employees.
 Identify and analyze other situations that could affect repairs & the restoration of a business.

Finally, evaluate the Business Income from Dependent Properties.

What is a Dependent Property? This will be covered in the next post.

In the event of a business-halting disaster, one main onjective would be to get back up and running as quickly as possible. There are multiple extenuating circumstances that could help reduce down time for your busiess, should an unfortuneate event occur that could halt any fraction of your operations.

Variables that could help reduce down times:

• Ability to temporarily relocate
• Availability of spare stock, raw materials, dies, designs, and programs for production. These should be stored off premises at a different location.
• Redundant equipment/production lines
• Excess capacity at sister plants/other locations
• Ability to outsource/sub-contract portions of operations
• Arrangement with vendors for product/production replacement
• Numerous (dependent property) suppliers and the ability to easily replace these suppliers. No single critical and/or major supplier
• No building codes and ordinance issues

Knowing what these are, your ability to make them happen is a key component of your business continuation/contingency plan.

A detailed, well thought out business continuation/contingency plan should be able to help a company make the necessary evaluation.

Where do I have this information?
This information is contained in the working knowledge of your business. It may already be part of other business plan documentation.

The basics are:

• Internal to company (other production lines/sister plants)
• What company resources do you have at other locations?
• Can work be shifted?
• Can the other locations pick up the work?
• Will this lead to extra costs?
• Redundant raw materials, equipment, production lines
• Are there substitutes available?
• Can the work be shifted?
• Is the equipment easy to obtain?
• Agreements with other companies / competitors / vendors
• Will they be willing to help you out?
• Are these agreements in writing?
• Have these plans been tested?
• Is it feasible?
• Do these companies / competitors / vendors have the capacity to help you out? And more importantly, would they?

A written plan should be in place and should include:

• Specific procedures
• Telephone numbers of key sources and employees
• Key decision makers
• Timetables and action plans
• Provisions for testing and implementation

The Contingency Plan should also address dependent properties.

When establishing values, the insured should not overlook cost to operate contingency plans.

There are a number of factors that could reduce or increase your business down time.

Today, half of the American households have no life insurance. If you are one of these households, we suggest taking a look at life insurance to protect your family. Life insurance rates have never been more affordable!

The rates below give you a good idea of what you can expect for rates in your age group.

Monthly cost for 10 year term, $100,000 death benefit, super preferred rating class, non-tobacco

Monthly cost for 20 year term, $500,000 death benefit, super preferred rating class, non-tobacco 

If you'd like to take the next step in protecting your family, here's all you'll have to do:

1. Decide how much coverage you need
2. Decide how long you would like the policy to remain in force
3. Contact Jeff Wolfgram to get started on a quick life insurance quote

Remember, life insurance is for the ones you love. Wisconsin residents contact knowledgebroker, Jeff Wolfgram today for more information or a quick life insurance quote!