R&R Insurance Blog

Believe it or not, OSHA doesn't require that an accident investigation be performed after an an accident in the workplace. But we highly suggest that an accident investigation take place in your workplace.

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(need more info from John on this one - reasons why...

As buildings age and change ownership, they can be used to house many different types of businesses over the course of ownership. Very often, the building's sprinkler system was designed for one particular process and therefore may not be adequate for the current manufacturing process.

For example one building that used to house a sheet metal fabricator could today be housing a plastics manufacturer. These two types of manufacturers require two different applications of sprinkler systems. A sprinkler system designed for a sheet metal fabricator is significantly different than a sprinkler system designed for a plastics manufacturer.

Risk Management Specialist John Brengosz explains the three key aspects of a properly sprinklered building.

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Infared scans of your electrical systems can determine hot spots in your electrical panels - sure to be a high risk of causing an electrical fire in your commercial business. Infared scans can detect heat levels in your electrical system and warm/hot spots that are sure indicators of a system overload.

Regular testing is one way to ensure that your electrical systems are adequate to handle the capacity your business needs today. Relying on yesterday's capacity can be risky. John Brengosz, Risk Management Specialist explains more about infared electrical scanning.

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Electrical fires are the #1 cause of property damage in commercial buildings. Regardless of the age of your building, keeping on top of regular maintenance checks for the electrical system, the heating and cooling system and the roof will ensure that you not only keep your property safe, but also keep your property insurance costs down.

Loss Control Specialist John Brengosz explains why underwriters need to see regular updating and maintenance of building systems.

Contact a knowledgebroker for any additional information on insuring your Wisconsin business with R&R Insurance.

Contract Bond underwriters traditionally screen potential bond customers (contractors) on the basics of 3 C’s Capacity, Character and Credit. The 3 C's are usually defined as:

1. Capacity: to complete the work, the resources of manpower, equipment and track record of completing work in the category of the work contemplated.
2. Character: the background and history of the contractor are positive indicators leading the bonding company to believe the construction company will endeavor to complete the work contemplated.
3. Credit: A combination of financial statement and borrowing history which builds a case that the contractor has sufficient working capital, equity, profitability, and a bank relationship which all will assist the contractor in completing the work contemplated.

It takes a combination of these 3 basic measurement elements to potentially qualify for a bond. Recently with shrinking profit margins, and available work, we are encountering contractors who are strong in relation to capacity and character, but whose credit has eroded over the last few years.

In cases where credit has eroded, surety professionals at R&R Insurance will suggest the use of funds control to secure bonds for contractors seeking bonds in Wisconsin.

Funds control simply stated is a system of parking a job’s revenues in an escrow account allowing the bonding company to be sure that the stream of revenues are going to satisfy job costs associated with the project at hand. Once costs are validated, project revenues are then disbursed by the escrow agent who uses those funds to pay the suppliers, subcontractors, and contractor at regular intervals throughout the duration of a project. This ensures that at the end there is a reasonable expectation that job costs are satisfied and profits can be realized.

Wisconsin contractors interested in improving any of their 3 C's or Wisconsin contractors interested in fund control options should contact Jay Zahn, Surety Specialist at R&R insurance Services.

Patient referral relationships and financial incentive arrangements between hospitals and other healthcare services could be found in violation of the current STARK regulations (Non-Compliant Referral Agreements). Hospital contracts, leases and other side agreements are now under intense scrutiny and could prove costly to hospital practices for unintentional violations. Understanding the laws governing referral relationships is essential as well as having the proper coverage in case of an investigation and possible allegations.

More Stark Violations and Civil Monetary Penalty Claims

For more information about Regulatory Compliance Insurance, contact a knowledgebroker.

One very obvious result of the economic downturn is how many times we notice once-thriving businesses we drive past every day are now sitting empty. This is troubling from an insurance perspective as well.

Vacant buildings are prone to certain types of perils. It's important to know that the majority of property insurance policies contain a vacancy condition that eliminates coverage entirely for vandalism, sprinkler leakage, building glass breakage, water damage, theft or attempted theft. This condition applies if the building that you own (or in which you are a tenant) has been vacant for more than 60 consecutive days. If another peril caused the loss, such as fire, the loss payment would be reduced by 15 percent.

Most policies apply the vacancy condition if less than 31 percent of the building's square footage is rented or used to conduct customary operations (note that buildings under construction are not considered vacant).

Wisconsin businesses, if you have a concern with vacancy, please contact a knowledgebroker so we can address the situation with your carrier. There are options - and we can help.

This group paid $611,250 to resolve their liability under the Civil Monetary Penalties (CMP) applicable to kickbacks and physicians self-referrals. They did not have regulatory insurance and were responsible for the entire fine.

More Civil Monetary Penalty Claims

For more information about Regulatory Compliance Insurance, contact a knowledgebroker.

A Fairfield, New Jersey physician (now retired) paid $40,000 to resolve his liability under the Civil Monetary penalties provisions applicable to false claims and kickbacks. He did not have regulatory insurance and had to absorb the full cost.

More Civil Monetary Penalty Claims

For more information about Civil Monetary penalties or Regulatory Compliance Insurance, contact a knowledgebroker.

Many people think that if you’ve seen one sprinkler system, you’ve seen them all! While this may appear to be the case, these systems are highly engineered and should be designed specifically for what you are doing in your building. Here are some key points about sprinkler protection and why this issue could be costing you a lot of property premium dollars.

What was your sprinkler system originally designed for?
Sprinkler systems are supposed to be designed to put out a density of water that has been proven to control a fire. Do you need the same density to control a fire in a metal working shop as you do in a plastics warehouse? NO!!! The National Fire Protection Association has done a great deal of research to find out what sprinkler designs protect a given building occupancy. The process starts with a sprinkler contractor knowing what will be done in a particular building.

Problems arise when people move out of a building and a new tenant or owner comes in.
Other problems occur from a building owner or tenant doing something in the building that they weren’t doing when the sprinkler contractor originally designed their sprinkler system. The result? Your sprinkler system may not be able to control a fire in your building!

Why should I care about this?
First and most importantly, you should care because your entire facility may be at risk for a fire loss. The beauty of properly designed sprinkler systems is that fire is controlled in a relatively small area with minimized damage. If your sprinkler system design is inadequate, you may be looking at a total loss of the building and all its contents. You may be covered from an insurance standpoint, but is this something you want your company to go through?

Secondly, most insurance companies use preferred rates for those facilities rated as "sprinklered". If your system has an inadequate sprinkler system, you could be getting charged the same rate as a building having no sprinkler system at all. To get the sprinklered property rates you deserve, you can figure out an approximate pay back period for work needed to upgrade your sprinkler system.

Any Wisconsin business needing more information on property insurance, sprinkler requirements or any other casualty insurance information contact a knowledgebroker. 800-566-7007