R&R Insurance Blog

Each weekday morning there are more than 3.1 million teachers and 49.8 million students rushing into public schools. (National Center for Education Statistics)

With the sheer volume of traffic in and out of schools each morning, revising safety protocols to minimize potential risks, like slips and falls, must be a priority.

You likely strive to continually reinforce your safety policy and communicate the importance of creating a culture of safety and prevention within your school. If you are looking for a way to reduce your costs while maintaining a high standard of safety, you might consider a policy revision. Starting small, consider these seven simple steps you can take in your school to minimize the occurrence of slip and fall accidents.

1. Entry Carpets To Reduce Moisture

As teachers and students travel into the school their shoes bring the outdoors in, be it snow, rain, dirt or muck. During wet or wintery months, it is important that your school entryways have carpets that extend at least six feet to ensure shoes are losing accumulated moisture. This simple measure will keep moisture contained to one manageable area and minimize the slip and fall risk throughout adjacent hallways and classrooms.

2. Outdoor Maintenance Schedule

Establishing a schedule to regularly maintain outdoor walkways, sidewalks and doorways is one way to minimize risk. Coordinating regular intervals for shoveling and salting, and for moisture and debris removal is an easy method to prevent slips and falls.

3. Outdoor Hazard Inspection

It is important to inspect your outdoor school property regularly and keep an eye out for potential hazards. For example, take a few minutes to identify pavement cracks or heaving and if you are unable to repair them right away, spray paint these hazards a bright color to ensure safety for all school visitors.

4. Indoor Maintenance

Whether it is a spill in the art room or a mess in the cafeteria, always ensure that your custodial staff is prepared. Consider the following recommendations:

• Establish communication protocols to alert custodial staff of a hazard so they can arrive quickly on the scene.
• Provide custodial staff with the necessary equipment and barricades to keep teachers and students away from known hazards.
• Ensure custodial staff has ample cleaning and hazard removal supplies on hand.

5. Indoor Hazard Inspection

Much like outdoor inspection, you should consider doing indoor safety inspections regularly, too. Educate all staff members on problems they should look for and solutions to help them prevent accidents. Simple things include identifying extension cords hazards and bundling cords out of traffic areas, and looking out for areas where moisture tends to accumulate, increasing the risk for slips and falls.

6. Storage and Hanging Policies

As a school, you are taught to think first and foremost about the safety and well being of your students. It is however, just as important to consider the safety of your staff members. Classroom storage is an important consideration because improper storage methods can lead to injury and falls. Consider implementing a policy on proper classroom storage and hanging and educate your teaching staff on the do’s and don’ts of storage.

7. Proper Footwear

While it might be difficult to advocate for proper footwear at school to fashion savvy staff and students, but it is a must. Designer shoes are not made for walking in inclement weather and will not bode well for personal safety. Encourage your students and staff to wear sensible, weather-safe shoes into the building and to change their shoes once they are safety indoors. Consider offering your staff members a shoe storage bag to carry their fashionable shoes to and from school and to use as a storage bag for their sensible shoes during the day.

What other simple safety solutions would you recommend to prevent slips and falls? Does your school have best practices?

At R&R Insurance, we are committed to helping schools minimize their risk, offering solutions and resources to help build safe environments for staff and students alike.

Interested in learning how R&R Insurance can improve safety in your school and reduce your costs? Request our free safety resources and case studies or schedule a call with one of our School Group Experts, today.

"With spending on unmanned aerial vehicles (drones) projected to top $89 billion in the next ten years and an estimated 7,500 active drones to be in use for commercial purposes by 2018", this technology will present significant economic growth opportunities along with many uncharted challenges. As corporations such as Amazon and Disney jockey for the use of drones in the commercial marketplace, this is a pervasive topic in pop culture and consumers are gaining an increased understanding drones’ of their risks and rewards.

Defining Drones

So, what is a drone, exactly? According to the Federal Aviation Administration (FAA), a drone is “a device used or intended to be used for flight in the air that has no onboard pilot” and includes associated on-the-ground equipment. These unmanned aircraft are typically controlled remotely by an individual on the ground or self-navigate using pre-programmed flight plans. Increasingly, many drones operate via camera which enables them to fly without remote control or GPS data altogether.

Rules and Regulations

The United States government is notorious for its slow and tedious reaction to defining or loosening controls on private sector regulations. The case for drones in commercial use is no different. “In 2012, US Congress passed legislation that directed the FAA to develop a plan for integrating unmanned aircraft systems into U.S. Airspace by September 30th, 2015. According to a federal audit, however, it is unlikely this deadline will be reached.

In the meantime, the legality of modern drone use hinges on antiquated guidelines published by the FAA in 1981, originally intended for hobbyist model aircraft. The 1981 report dictates that unmanned aircraft be operated no higher than 400 feet above ground, away from populated areas, and no closer to an airport than three miles.

With the 1981 guidelines so blatantly open to interpretation, the FAA further defined their position on the issue in February 2014, stating “[y]ou may not fly a UAS for commercial purposes by claiming that you’re operating according to the Model Aircraft guidelines…Commercial operations are only authorized on a case-by-case basis. A commercial flight requires a certified aircraft, a licensed pilot and operating approval.” To date, the FAA has approved commercial drone use for only a small a handful of corporations.

Opportunities Drones Present

One significant benefit insurance industry professionals and consumers could see from the use of drones is in the inspection of premises after a loss. Using a drone to collect visual data rather than a claims adjuster could help decrease wait times for claim assessment, increase accuracy of loss analysis, and expedite the pay-out of said losses. Recently, the United Services Automobile Association (USAA) filed for permission to use drone aircraft to assess damage at disaster sites. Undoubtedly, many insurance carriers will follow suit as the FAA advances the regulatory process.

Additional economic opportunities include:

• Decrease in workers’ compensation claims as drones are sent in to investigate dangerous/unstable situations instead of humans
• Increased revnue within the private sector as the rate of product delivery, data collection surge

Hazards Drones Pose

At present, the highest use of (illegal) commercial drones is occurring among farmers, who are employing this technology to survey crops and aid in crop spraying/dusting. As efficient as this method might be, using drones to apply fertilizers and pesticides to crops could potentially result in cross contamination of an adjacent farmer’s crops or pollution of a waterway. A claim resulting from a loss occurring under these circumstances would not be covered under most all current liability or pollution policies.

Additional risks include:

• Invasion of privacy – capture of unlawful images (personal injury exposure)
• Hijacking – possible in cases of theft of goods (which drone may be carrying) and terrorism (cyber liability exposure)
• Threat to electrical grid as drones could interfere with power lines (property damage)

Coverage for Drones Under Commercial Insurance

Because the commercial general liability, property, and inland marine all have explicit aircraft exclusions for bodily injury or property damage losses arising out of the ownership, maintenance, or use of aircraft, currently no carriers partnering with R&R Insurance offer adequate coverage for drones . However, this is expected to change when the U.S. Government more clearly defines their use in the private sector. As we become more familiar with the legal standing of drones, insurance carriers and brokers will adapt to placing this risk.

In the future, some areas of coverage may include:

• First—party marine or hull insurance to cover the drone itself and its accompanying parts
• ISO is in the process of formulating new endorsements for the CGL and umbrella/excess liability policies to cover commercial drone exposures. A target release date for these endorsements has been set for June of 2015.
• An increase in carriers offering aircraft coverage specifically tailored to cover drones on their own policy

As technology continually evolves and the landscape of industry changes, R&R Insurance is uniquely positioned to navigate these shifts. The strong bonds our agency has built with various carriers in the industry allow us to be at the forefront of offering our insureds this coverage as it rolls out. If you have specific questions or concerns regarding drones and commercial insurance coverage, please contact one of our knowledgeable licensed agents!

Staying organized has always been a struggle for many homeowners, especially when it comes to keeping homes up to date on safety issues, cleaning, and ensuring that their homes are safe year round. Well fear the disorganized chaos no more, because I have a checklist for you!

The following link provides a great tool for keeping yourself organized, and your home clean and safe on a month-to-month basis.

http://www.womenhacks.com/homemaking/homeowners-yearly-checklist/

This list provides a number of helpful hints on when to clean and check on certain items in your home. The list is printable, which makes it easy to hang on the refrigerator, or someplace you wont forget! I have already used some of these great hints around my own apartment!

So click on the link above and become the organized homeowner you have always dreamed of being!

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About the author: Lauren is an R&R Insurance intern learning about the insurance industry through sales and service experiences.

Transportation has changed quite a bit in the past decade, particularly in the taxi industry. With the rising prices of taxis and other public transportation, rideshare services like Lyft, Uber, and Sidecar have changed the transportation industry. Unfortunately, any changes in the transportation can also mean new dangers for passengers.

Ridesharing is a convenient service where drivers that live in a certain geographical area will drive their own cars to pick up clients. Clients use the company’s app to request a driver to their location. The drivers will then get a notification on their cell phones telling them when and where to pick up the client. These drivers originally used their own insurance for their vehicles because the vehicles were primarily for personal use.

This became a serious problem for both the drivers and the clients they were picking up. Personal auto insurance has an exclusion of coverage for any delivery that a vehicle is making. This means that when a driver is giving someone a ride for any type of profit, their vehicle is not covered by their personal insurance. If a driver were to get in an accident with a client in the vehicle the driver is susceptible to a lawsuit, and there is no coverage for any medical expenses from the accident. Accidents were happening quite frequently due to the fact that many drivers were using cell phones while driving to get notifications for clients. (See related article: Distracted Driving Causes 8,000 Accidents Every Single Day!)

Only recently did certain companies require commercial vehicle insurance for drivers. There are also some states that require this as well, though not all states require this.

If you are considering using any rideshare company for transportation, be sure to check on the following things:

1. Make sure the company requires its drivers to have commercial vehicle insurance.
2. Tell the driver when you get in that you do not condone driving and cell phone use at the same time. The driver should not be on his or her phone while you are in the car.

If you are thinking of becoming a Rideshare driver, check with your potential employer on the following aspects of your job:

1. What kind insurance, if any, do they provide for their drivers?
2. If you need a certain type of insurance, where can you get the insurance from?
3. What are the specifications needed for the insurance?

If you verify all of these questions with the company or your driver, you can get to where you need to go, save money, and stay safe!

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About the author: Lauren is an R&R Insurance intern learning about the insurance industry through sales and service experiences.

Annual revenue record set by October P&C and Benefits

Top 100 P&C agency

Website award

WELCOA award

Snyder acquistion

And it's only October!

The second annual State of Wisconsin Cyber Security Summit was held at Marquette University on October 8, 2014 (see photo on right). The Summit brought together national and international cyber security experts to discuss how the threat of cyber attacks can be reduced. According to Maj. Gen. Don Dunbar, adjutant general of the Wisconsin National Guard and the senior state official for cyber-security issues:

“The impact of a modern emergency will have physical effects, cyber effects, or both. A cyber attack could be just as deadly and costly as a severe storm or major tornado. Cyber criminals could severely degrade basic services that we rely on such as power, water and communication systems,” said Maj. Gen. Dunbar. “That’s why Governor Walker ordered the expansion of the State of Wisconsin Emergency Response Plan to include an annex focusing on the state’s response to cyber attacks and has authorized the adoption of the cyber hygiene campaign.”

Steps of Cyber Hygiene

1. Count: know what is connected to and running on your network.
2. Configure: implement key security settings to help protect your system
3. Control: limit and manage administrative privileges and security protocols; limit and manage those who have admin privileges to change, bypass or override your security settings
4. Patch: regularly update all apps, software, and operating systems
5. Repeat: regularize the top priorities to form a solid foundation of cyber-security

Other key notes from the conference:

• In order to stop cyber crime we need to change behaviors. You can’t build a firewall for stupidity. Passwords are too easy to crack into. The weakest link in cyber security are individuals i.e clicking on links or attachments in emails; writing down passwords.
• The problem with mobile devices is that the majority have no encryption, no password, and no time outs. 637,000 laptops are stolen every year at 106 US airports. The majority are never claimed.
• Beware of wireless networks. For example, 90% of the wireless access points at Chicago O’Hare airport are rogue.

Business need to be aware that if they have sensitive data on a network they are a target regardless of the size of your operation. It takes criminals minutes and seconds to access your system and may take weeks and months for you to detect the intrusion. The Chinese are the biggest threat. In the old days a compromised machine can be taken off line. Now taking it off line moves the virus further into the system and requires forensics to locate and contain.

Since 2005, there have been 4,404 data breaches publicly reported which encompasses 930,642,064 known records (the scope of some breaches are unknown at this point), according to privacyrights.org a nonprofit clearing house.

Included in this total are the 56 million records compromised over a 5 month period in the breach reported by Home Depot last month. Not included at this point are the 76 million households affected by a breach at JPMorgan Chase, the nation’s largest bank on October 2, 2014.

While it is these large cases that make headlines, a recent study conducted by the Ponemon Institute found that more than half of small- and mid-sized businesses experienced a data breach and nearly three-quarters can’t restore their data. While businesses like Home Depot, Target, and JPMorgan Chase will weather this storm, 60% of small businesses close their doors within half a year of being victimized by cybercrime. According testimony at the House Subcommittee hearing on Health and Technology, the one thing that hurts businesses more than anything else is using poor passwords.

Help prevent a cyber attack at your organization:

1. Passwords should be at least 12 digits long, include capital and lower case letters, and have a number or two
2. Businesses need to utilize encryption of all sensitive and regulated data
3. Make sure your network is compliant: anti-virus, anti-malware, firewalls, that the firmware on your firewall is up to date, and patches to your operating system are current
4. Conduct periodic network scans
5. Have policies on security and the use of data and mobile devices. Train your employees on following these policies.

According to Home Depot, criminals used unique, custom-built software that had not been seen in previous attacks and was designed to evade detection. In an article by Insurance Journal, approximately 40% of the cost will be covered by insurance. This is the future that businesses need to prepare for regardless of the size of your company.

What is currently required to be reported to OSHA?

• All work related fatalities
• Work-related hospitalizations of 3 or more employees

Starting 1-1-2015, what will employees have to report to OSHA?

• All work-related fatalities (within 8 hours of finding out about them)
• All work-related inpatient hospitalizations of 1 or more employees
• All work-related amputations
• All work-related losses of an eye

Important note on who is covered by this ruling
All employers under OSHA jurisdiction must report the 4 events listed above and this includes even small employers with less than 10 employees. (who are exempt from OSHA record-keeping)

How soon must these be reported?

• Fatality: within 8 hours of finding out about it or if the death occurs within 30 days of a work-related incident.
• For inpatient hospitalization, amputation and eye loss, employers must report within 24 hours of learning about it. (employers only have to report an inpatient hospitalization, amputation, or loss of an eye that occurs within 24 hours of a work-related incident.)

How do I report one of these events to OSHA?

• CALL: Your local OSHA office or use the 24 hour hotline at 1-800-321-6742
• ELECTRONICALLY: OSHA is working to have this in place soon! (www.osha.gov)

What information do I need to report?

For fatality, inpatient hospitalization, amputation or loss of an eye, report the following:

• Company name
• Location of the incident
• Time of the incident
• Type of injury sustained
• Number of employees who suffered the event
• Names of the employees involved
• Contact person and his/her phone number
• Brief description of the work related incident

Employers DO NOT have to report an event if it:

• Resulted from a motor vehicle accident on a public street or highway. (it does need to be reported if the event happened in a construction work zone)
• Occurred on a commercial or public transportation system (airplane, subway, bus, ferry, streetcar, light rail or train)
• Occurred more than 30 days after the work-related incident if a fatality or more than 24 hours after the work related incident in the case of an inpatient hospitalization, amputation, or loss of an eye.

What about heart attacks?

Employers do have to report an inpatient hospitalization due to a heart attack, if the heart attack resulted from a work-related incident.

2015 OSHA reporting explained: download flow chart

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NOTE: In the same ruling, OSHA has also changed the list of occupations that are now required to complete the OSHA 300 log. It is important to note that employees who had fewer than 10 employees in a calendar year are still exempt from having to complete an OSHA 300 log.

For the new list of industries now required to complete a 300 log as well as additional information can be found at: www.osha.gov/recordkeeping2014.

Have additional questions? Contact your knowledgebroker.

Has this ever happened to you?

You purchase some lumber at Menards. You drive your vehicle to the lumber area and park it. Then, an employee of Menards helps you load your truck. Actually, this scenario could happen at any store where you purchase larger items or appliances and then get help loading your vehicle.

But I’ll guess that what happened next to Vicki Blasing, did not happen to you.

Blasing stood near the rear passenger side of her pickup truck as a Menards employee attempted to load the lumber. Unfortunately, some of the lumber fell off and landed on Blasing’s foot.

She filed a personal injury lawsuit against Menard, Inc. and its insurance carrier, Zurich American. She alleged two causes of action against Menards. The first was common-law negligence, and the second was based on Menards’ alleged violations of Wisconsin’s Safe Place Statute.

Menards then tendered the defense and indemnification of the lawsuit back to Blasing’s own personal automobile insurance carrier, American Family Insurance. Menards argued that while their employee was loading Blasing’s truck he was, by definition in the policy, “using” her truck with permission. Both he and Menards would then be considered insureds under Blasing’s personal auto insurance, and therefore, American Family owes Menards a defense.

A majority of the Wisconsin Supreme Court agreed with Menards in an opinion where the words “absurd” and “anomaly” appear frequently. However, this decision is actually consistent with prior cases that addressed what constitutes “use” in an automobile liability policy. This case was sent back to the lower court to proceed on the merits. The issue of whether American Family or Zurich Insurance will provide primary coverage to Menards will have to be worked out at a later date.

Three justices dissented from the Majority’s opinion. They argued that Blasing’s Safe Place Statute allegations involving Menards internal procedures, policies and facilities do not constitute “use” of an automobile.

So how can you avoid a legal mess like this? As it stands right now in Wisconsin, if a store’s employee is loading your vehicle, you should just stand back…way back…at a safe distance and let them load it.

The One Year Statute of Limitations for 1st Party Property Claims

This statute sets the time limit for an insured to file a lawsuit against their property insurer when there is a dispute between them.

The cases below reinforce the importance of reporting all property claims in a timely manner and that if a dispute arises between the insured and insurer, the insured needs to move quickly to preserve their rights.

Even though the statute refers to “Fire Insurance”, Courts have interpreted this to mean all 1st Party Property Policies, such as:

• Homeowners
• Dwelling Owners
• Farm-owners
• Commercial Property
• Inland Marine

Wisconsin Statute §631.83 states that:

An action on a fire insurance policy must be commenced within 12 months after the inception of the loss. This rule applies to riders or endorsements attached to a fire insurance policy covering loss or damage to property or to the use of or income from property from any cause, and to separate windstorm or hail insurance policies.

What does “after the inception of the loss” mean?
There have been published cases which have addressed this issue. These cases show just how tough this standard can be.

In Borgen vs. Economy Preferred Ins. Co., the Borgen’s home sustained hail damage in August 1989. They did not discover the damage until October 1990, approximately 14 months later. The Court dismissed their lawsuit and ruled that the inception of the loss was when the hail storm occurred, not when Borgen first discovered the damage. So, unlike other areas of the law, they refused to apply a discovery rule which would extend the 12-month statute of limitations.

In Bronsteatter vs. American Growers Insurance, a farmer’s 12-row corn planter was vandalized on May 17, 2002. As a result of the vandalism, 2 of the 12 rows would over-fertilize and killed the seeds. Unaware of this vandalism, Bornsteatter planted over 1,000 acres of corn. On June 3, 2002, he realized there was a problem, and discovered the vandalism. He reported the vandalism to the Sheriff and his insurance carrier that day. He filed suit against his property insurer twelve months later on June 4, 2003.

However, the court dismissed his lawsuit by concluding that the “inception” of the loss was when the corn was planted in May 2002. The court rejected Bronsteatter’s arguments that the inception of the loss was either when the problem was discovered in June 2002, or when the loss was actually sustained at harvest time in December 2002.

Note that the statute does allow for the 12-month time limit to be tolled, or temporarily stopped, by formal agreement of the parties, or when the parties conduct an appraisal or arbitration procedure outlined in the policy.

As agents we need to make sure that there are no unnecessary delays on our part in reporting a claim to an insurer. R&R's claims tools are available 24 hours a day, 7 days a week. From our emergency claims service center to CSR24, we are here to help when you need it most.

This material is for informational purposes only and not for the purpose of providing legal advice. R&R Insurance Services, Inc. is not a law firm. You should contact your attorney to obtain advice with respect to any issue or problem specific to your business. The information contained in this document is intentionally condensed and a summary of statutes and court findings.