R&R Insurance Blog

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.

In an article by SFM (full article), the New England Healthcare Institute reports the national overuse of hospital emergency rooms results in $38 billion in annual wasteful spending. And that an estimated 56% of ER visits could be avoided! Not only is it costing the individual more money, but it is also costing the employer more money in terms of their health benefits and/or work comp costs.

Aside from the dollar figures associated with visiting an ER instead of primary care provider, the quality of care varies as well. An ER is equipped for the doctor to do the initial triage treatment and delegate any follow-up care. There tends to be lack of long-term treatment for the patient. Which could ultimately cost more money for additional treatments if a long-term treatment plan is not discussed at time of injury.

However if a patient is able to visit their primary care provider, an urgent care facility, or a specialty clinic, it typically has a more ideal outcome as the individual is treated by a specialist who is able to guide the treatment. Ultimately, staying out of the ER when possible will lead to better medical outcomes, less frustration, and reduced costs.

WellCompForLife can reduce costs for your health benefits AND work comp to positively impact your bottom line.

You may have seen the news story on June 30, 2014 about a Stevens Point woman who lost her wedding ring five or six years ago. She searched everywhere, but could not find it.

Last week the woman’s granddaughter was eating a popsicle when the dog stole and ate it. The dog coughed up the popsicle stick shortly afterwards. Two days later the dog started coughing up again and threw up the wedding ring that had been missing for the last 6 years. The veterinarian believes that the stick dislodged the ring from the dog’s stomach.

Other than being an interesting story that captured some national headlines, the whole incident brings up some insurance issues:

• First, the woman comments that six years ago she had just upgraded the ring and had failed to insure it. This highlights the importance of obtaining a personal articles floater to cover valuable items.
• Secondly, let’s assume that she had insured the ring and the insurance company paid her for the loss six years ago. Now that the ring has been recovered, what should the woman do?

Most policies are very clear: she must report the ring’s recovery to the insurance company that paid for the loss. The insurance company owns the salvage value of the recovered ring.

Nearly every property insurance policy, whether it is Homeowners, Business Property, Inland Marine, commercial or personal automobile policy, has a Recovered Property Condition in some form.

The Recovered Property Condition states that if either you, or your insurance company, recover the property after a loss settlement, then you must promptly notify the other party.

You have the option of retaining the recovered property. However, you must return payment to your insurance carrier. The insurance company will pay for recovery expenses and the expenses to repair the property subject to the Limit of Insurance.

If you decide that you do not want the recovered property, then your insurance company will sell the property to recoup some of the loss.

Over my years of handling claims, I have seen this process play out with recovered jewelry, stolen bikes, cars, and construction equipment.

Luckily, this story had a happy ending even though the woman had an extensive cleaning job to do.

Related articles:

• 9 Steps to a Complete Home Inventory
• Jewelry, Collectible Items, and Furniture: Does Your Policy Cover Their Full Value?
• Will My Homeowner's Policy Cover My Jewelry?

One of the most stressful events you can face as a driver, a homeowner, or a business owner occurs when someone claims they were injured due to your negligent actions. This most often arises from traffic accidents, but it can also arise from slip and fall accidents, dog bites, construction accidents, or allegedly defective products.

The first question that has to be answered is whether you are legally responsible for the injury. If you rear-end someone or run a red light, then your negligence is probably fairly clear. However, in other situations, your negligence may not be clear. For purposes of this article, let’s assume you injured the person due to your negligent actions.

Question:

So what does Wisconsin Law allow an injured person to recover from you?

Answer:

An injured person may be able to recover:

1. Past Medical Bills incurred for injuries related to the accident.
2. Future Medical Bills if those injuries are permanent.
3. Past Wage Loss due to the accident.
4. Future Income Loss, if that person is unable to return to their former profession.
5. Past Pain & Suffering which resulted from their injuries.
6. Future Pain & Suffering if the injuries are expected to cause pain in the future.
7. Loss of Consortium for the spouse of an injured person resulting from their loss of services.
8. Property Damage they may have suffered in the accident.

Luckily, the majority of legally-compensable injuries are not severe or permanent. In fact, most claims are usually resolved by the insurance carrier before a lawsuit is filed, or before the case goes to trial. However, some cases go to a jury trial, and the decision about who is at fault and how much to award the injured person is left in the jury’s hands.

Sadly, fatalities can sometimes result from accidents. In those cases, Wisconsin law allows “Wrongful Death Actions” by the deceased person’s personal representative, surviving spouse, domestic partner, child, parent or guardian.

In fatality accidents, the following damages are potentially compensable:

1. Medical Bills incurred before death
2. Conscious Pain & Suffering, if any, before the person died.
3. Loss of Future Income to the person’s survivors, which can be very large if the person was young or a high wage earner.
4. Loss of Society & Companionship. These are damages that the survivors suffer from the loss of that person’s emotional support. Wisconsin has set the following caps on this element of damages: $350,000 for an adult and $500,000 for a child.
5. Pre-Death Loss of Society & Companionship. If the person survives the accident, but dies at a later date due to the accident, the survivors may be entitled to pre-death loss of society and companionship which is NOT subject to the caps listed above.

Keep in mind that you would be responsible for compensating an injured person, or their survivors, for their damages regardless of how much insurance you decided to purchase.

When our agents recommend liability limits in excess of $500,000, and offer to quote additional limits in the form of an umbrella policy, they are looking to adequately protect you in the event of an unfortunate accident for which you may be found liable.

Please talk to your Knowledge Broker about any concerns you have about liability limits. He or she will explain all options available to you and the costs involved.

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 you or your business. The information contained in this document is intentionally condensed and a summary of statutes and court findings.

Jackson vs Wisconsin County Mutual, Decided 6/10/14 by the Wisconsin Supreme Court

On the day of the accident, Rachelle Jackson was on duty as a Milwaukee County Sheriff Deputy directing traffic at the Milwaukee airport. She was about to direct the driver of a car when she walked in front of that car to check for oncoming traffic. The driver of that car pulled forward and struck Ms. Jackson.

She presented an under-insured motorist claim to the County’s commercial automobile policy. Wisconsin County Mutual disputed coverage and this lawsuit began.

The policy pays sums owed by an under-insured motorist to an insured person who is injured “using an automobile within the scope of his or her employment or authority.”

The policy defines “using” by the meaning set forth in Wisconsin Statute § 632.32(c) (2), which defines “using” to “include driving, operating, manipulating, riding in and any other use.”

Jackson argued that she was directing the driver of the car into traffic, and that this constituted “manipulating” or was making some “other use” of the car.

Prior cases have granted coverage to persons directing a car. In those cases, the actual driver is really acting under the direction and control of the person directing them. In those cases, the person directing the car is “manipulating” the car, which constitutes “use”, and coverage was granted.

In Ms. Jackson’s case, she had not yet started directing the car into traffic. Therefore, she was not yet “manipulating” or “using” it by definition. The Court found that she was not entitled to under-insured motorist coverage under this set of facts.

Comments:
Had Ms. Jackson started to motion for the car to pull forward, it seems she would have met the definition of “use” and been granted coverage.

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 you or your business. The information contained in this document is intentionally condensed and a summary of statutes and court findings.

Potentially impacting both your business and your personal insurance policies under liability and property coverages, there were 2 recent cases from different branches of the Wisconsin Court of Appeals that came to different conclusions on essentially the same set of facts.

Business impact:

A farmer fertilized his field and that fertilizer contaminated a neighbor’s property. One court agreed with the insurer and denied coverage, the other sided with the farmer.

Read full article here

Personal impact:

There is also a recent homeowners case where bat guano got so bad in a seasonal home that the house had to be torn down. In that case, the Wisconsin Supreme Court said that bat guano was a “pollutant”, sided with the insurer and denied coverage for the house.

Related: Skunks Cause Waukesha Family One Stinky Mess!

Questions about your policy exclusions? Contact a knowledgebroker.

We talked about a great article we came across by Jim Guidry of the Wisconsin Office of the Commissioner of Insurance that talked about a way to protect your personal property by using your iPhone® or iPad®, he also gave some pointers on how to complete a home inventory.

(Hint) A suggestion from our staff is to hire your teenager to do this for you.

Take these 9 easy steps to complete a home inventory:

1. Make a list of possessions, including "celebration" purchases, such as jewelry and fine art.
2. Think about family heirlooms, collections and furniture. Also, consider items related to everyday leisure time, from flat-screen televisions to custom guitars.
3. Take note of commonplace items such as toys, CDs and clothing. Do not forget items you may only use occasionally such as holiday decorations, sports equipment, tools, and high-ticket items kept outside your home such as landscape and swing sets.
4. Attach copies of original sales receipts and/or appraisal documents to your inventory. Be sure to note model and serial numbers.
5. Group your possessions into logical categories. (i.e., by hobby, by room in your home)
6. Carefully photograph or videotape each item and document a brief description, including age, purchase price and estimated current value.
7. Remember to open drawers and closets to document what is inside.
8. Store your home inventory and related documents in a safe, easily accessible place, such as a secured site/file online, a fire-proof box or in a safe deposit box. You may want to share a copy with your insurance provider to make necessary updates to your coverage.
9. Review and update your inventory annually and anytime you make a significant purchase.

More information on home inventories can be found on our website. Wisconsin residents who have more questions on home inventory or homeowners insurance, please contact KnowledgeBroker, Dan Wolfgram.

What would happen if your home was completely destroyed by fire or tornado? Would you be able to replace it? When it comes to insuring your home, it doesn't really matter how much it is worth, but rather it's important to determine how much it will cost to replace the dwelling.

Reconstruction values may be drastically different from the market value, especially in today's housing market. It's important to have your agent run a replacement cost estimator of your home. You can also run your own replacement cost estimators on sites like AccuCoverage. Enter the details about your home carefully, even if it takes some extra time to dig out the paperwork. Accurate details will provide a more accurate replacement cost on your home. Then, if a catastrophic loss occurs, you can be sure you have the right coverage to replace your home.

According to the executive director of United Policyholders, Amy Bach, predicting the replacement cost requires more than making a ballpark guess. "Computers don't build houses," Bach says, "Contractors do, but you've got to start somewhere." Bach went on to say that more than 67% of homeowner's are underinsured.

How can homeowners be under-insured on their home replacement costs?

• Construction costs have increased
• People forget to let their agent know about additions
• The initial replacement estimate was too low
• Coverage hasn't been reviewed annually

For example, if you have a dwelling with extended replacement cost on a home insured for $200,000, the most the insurance policy will pay out will be $250,000 if the home is a total loss. The extra coverage provides a safeguard in case the home isn't insured for enough - but it still may not be enough! The best way to make sure you are fully insured to replacement value, is insuring your home with guaranteed replacement cost. Many of our carriers offer guaranteed replacement cost which pays the full cost of replacing or repairing a damaged or destroyed home, even if it is above the policy limit.

Wisconsin residents, contact knowledgebroker Dan Wolfgram for more information or a quick quote on your home & auto insurance!

The emergence of Spring after a long Winter (which in our area feels more like an eternity of arctic-comparable misery) means many things: birds chirping, life's renewal, flowers blooming, and the scary stuff... thunderstorms. On one hand, thunderstorms bring heavy rainfall that washes away the snowy remnants of months past. On the other hand, they often arrive with a dangerous foe we call lightning.

Ted Marino, resident of Brookfield WI and an R&R customer since 1984, explains the peace-of-mind he had immediately after his home caught fire from a lightning strike during a storm in 2010. Ted and Chris escaped without harm, but their house was another story...

Technically speaking, lightning is an electrical discharge caused by an imbalance of negative and positive charges. Thunderstorms often result in the storm clouds becoming negatively charged due to various colliding water particles, while objects on the ground become positively charged. In an attempt to rebalance this, electrical currents pass between the negatively and positively charged entities –producing bolts of electricity and heat that are both fascinating and incredibly dangerous.

Stay safe when lightning strikes:

• If you hear thunder or see lightning, move to a safe shelter (such as a building or metal-topped vehicle with the windows closed)
• If you are in or near a body of water, get out immediately!
• Stay off any electrical equipment (such as corded phones and computers)
• Steer clear of objects that conduct electricity (such as golf clubs, barbed wire fences, power lines, and windmills)
• Keep away from high points of elevation

When it comes to lightning, an alarming number of people believe the myth that “lightning never strikes the same place twice.” In fact, lightning can and will strike the same place twice (National Geographic reported about 100 strike earth’s surface every second) and at temperatures up to five times hotter than the sun!

Wisconsin residents can have the same peace-of-mind that the Marino's experience. Contact knowledgebroker Dan Wolfgram for more information about personal insurance options through R&R Insurance Services.

Who is responsible for the cost of an accident when there is a multi-car pile-up?
Normally, when a car hits the vehicle ahead of them, the car behind would be held liable. The automatic assumption is that the car travelling behind must stay a safe braking distance behind the car in front.

Multi-car crashes are a different story. They can be complex because it’s often very difficult to establish “who did what” – unlike a single vehicle accident, or a one-car crash. Law enforcement will take details of each and every car, position, driver and weather conditions. Common questions law enforcement will consider are:

• Whose negligent actions set off the chain reaction?
• Were other drivers speeding or driving too close?

The police report will usually cite which car is at fault as it examines and explains how the accident occurred. Most often it is one car that started the chain reaction in a multi-car pile-up; however, it is possible for two or more cars to share the blame for a multi-car accident. The amount of blame or “fault” will be determined by either the police officer who writes the report or by the insurance adjusters, negotiating for an optimum solution. For example, one driver may be deemed to be 80% at fault, while another driver takes the remaining 20% of the blame. It is possible for several people to share in the fault, or even everyone involved sharing some of the responsibility. The more details, cars and people that are part of the scenario, the more complicated the determination of fault becomes. See in this video how the chain reaction just keeps happening - taken on Sunday, December 8, 2013 in Milwaukee.

What kind of insurance coverage do I need if I'm involved in a multi-car accident?
While it can be extremely difficult to determine “fault” during the investigation of a multi-vehicle accident, here is what we do know:

1. The damage to the vehicles involved in multi-car accidents is often more extensive than a one or two-car accident. Vehicles are often hit in different areas, sometimes over and over.
2. There is an increased likelihood of bodily injury because, again, the vehicles are often hit over and over again. Both drivers and passengers are statistically injured more severely in multi-car accidents.
3. If you are found at fault for a multi-car accident, for any percentage of the blame, you could be sued by other injured parties.

Carrying adequate liability coverage can shield you from most or all of this, especially when it's coupled with an umbrella policy. Additionally, liability insurance pays your legal defense costs should an injured party sue you.

What should I do to protect myself if I’m involved in a multi-car crash?

1. Most importantly, stay in your vehicle with your seatbelt fastened. Make sure everyone else in your vehicle has their seatbelt fastened as well, until law enforcement or EMTs give you the OK to exit. Keep in mind that there are still thousands of pounds of metal and glass moving toward you, and you could still be hit a second or third time. This video shows how dangerous standing outside your car can be.
2. Put your hazard flashing lights on.
3. After law enforcement has secured the scene, and if you are in a position to collect your thoughts, it would be wise to take a few minutes to record your observations on the incident. With large incidents, ensuring that your involvement is thoroughly detailed will be important when claim time comes.
4. Once you've been in an accident, notify your insurance carrier or agent immediately.

Knowing what you now know about multi-car accidents, reviewing the liability limits on your auto policy and having the discussion with your independent insurance agent about an umbrella policy is the next step to making sure you are safe and protected should any multi-car accident happen to you. Contact a knowledgebroker for more details about liability coverages, umbrella policies, or for Wisconsin residents to get a quote on their auto and home insurance.

Our thoughts and prayers go out to the injured and their families from Sunday's extensive, weather-related, multi-car pile-ups that occurred all over the metro Milwaukee area. Be safe out there!