OneGroup’s Rick Leonelli talks about the major trends that could make 2019-2020 an expensive year for schools and what officials need to do to keep kids and teachers safe.

OneGroup: Can you believe we’re almost back to school? What types of risks do schools face this time of the year?

Rick Leonelli: Daily news reports of mass shootings raise questions about how to prevent and deal with potential active shooter situations and the crisis events that could follow.

There are insurance products available to help school communities handle the expenses of such a devastating event. These crisis event products can help pay the school for services like counseling, emergency medical care, additional transportation, public relations or security services.

If this type of event happens, knowing how you can help your school community is of the utmost importance.

OG: Have you seen any trends lately on risks that schools are facing?

RL: Schools are facing two major risks right now: litigation as a result of the Child Victims Act and an increase of criminal cyber activity.

The Child Victims Act (CVA) went into effect in New York State on August 14, 2019. The CVA extends the statute of limitations and allows victims to file civil action against their abusers and the institutions that employed and/or enabled the abusers. The law allows for a one time only, one-year period until August 14, 2020 for all victims to start any new legal actions if the past statute of limitations prevented them from starting a claim. This means that a school could be sued for an abuse crime that happened in the 70s, 80s, 90s, etc.

Due to the unique one-year period granted in the law, schools may be put in a challenging position if very old allegations present new claims. It will be important that your current (and possibly any past) insurance brokers are notified of any new abuse claims. Being able to determine the coverage that was in place for the time period of any alleged abuse will be important for institutions to find defense and potential indemnification for damages.

This will be an issue for more than just schools this year. Expect to see increased litigation affecting churches and nonprofits, too.

Many schools have also been targeted by cyber-thieves and criminals recently. Hackers are seeking access to records and may use such information to demand ransom. They can prevent school administrators from accessing the records and may threaten to release sensitive information.

Cyber attacks can be expensive. Some can costs hundreds of thousands of dollars, others can cost millions. Being fully prepared involves prevention methods – sound cyber protection and ongoing employee education – as well as a policy that’ll protect you financially should an attack occur.

Know that you’re not alone, either. Organizations like CISA, the FBI or the Secret Service are equipped and willing to help victims of cyber attacks. Check out this piece by CISA to learn more about what you can do before, during and after a cyber attack to minimize damages and costs.

Always be sure to talk to your insurance advisors to check if your policies have kept up with increasing and evolving risks.

Rick Leonelli, CIC is a Senior Account Executive at OneGroup. He can be reached at 518-952-7985 or RLeonelli@OneGroup.com.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

For Immediate assistance call 1-800-268-1830

A community rated health plan may be right for your business – especially if you have fewer than 100 employees.

By Krista Latimer

We get a lot of questions about community rated health plans. For many businesses, a community rated plan is the way to go. Small business owners most frequently run into community rated plans when they shop for group health insurance options. In New York State, companies with fewer than 100 employees are subject to community rated plans.

Being community rated means that every company in a given geographic area pays the same premium rate for the same plan – regardless of the age, residence or gender of its participating employees. The premium rates and plan designs are established and cannot be modified, since the plans and rates are approved by New York State Department of Financial Services.

Though it may sound like it limits your options, community rating can be a benefit to a business. Insurance carriers are unable to raise rates on plans subject to community rating. That keeps your rates at a predictable level and puts you on the same playing field as the businesses around your size in your community.

OneGroup’s consultants can help you sort through the many plan designs and recommend a plan that will fit your needs. If you’ve run into community ratings in your employee benefits package search, don’t hesitate to reach out.

Krista Latimer is an Employee Benefits Consultant at OneGroup. She can be reached at 315-413-4426 or KLatimer@OneGroup.com.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

For Immediate assistance call 1-800-268-1830

More employees will be covered starting July, 2019.

By George Gomez

Did you know? New Jersey was the first state to enact mandated paid family leave benefits.

The January 1, 2009 law was officially known as the Family Temporary Disability Act. It was designed to provide paid leave benefits to employees that needed time to help care for “qualifying” family members.

Almost ten years later on February 19, 2019, New Jersey enacted a bill (AB 3975 the “Act”) to increase the state’s minimum wage and broaden the current Family Leave Act, Security and Financial Empowerment Act (SAFE), and the paid family leave insurance program (FLI). Some provisions of the Act were effective immediately and other provisions were phased in starting on July 1, 2019.

Increased Leave Protections under New Jersey Family Leave Act (NJFLA)

Lower employee threshold for covered employers:

More NJ employers will be subject to NJFLA as of 7/1/2019 because the employee count will drop from 50 to 30 – regardless of the employee’s work location.

Expanded definition of “qualifying” family member regardless of age:

Employees may take family leave to care for a family member with a serious health condition. The covered relationships under the Act were expanded to include:

• Foster children
• Newborn children conceived through gestational agreements
• Siblings
• Parents-in-law
• Grandparents/Grandchildren
• Domestic Partners
• Any individuals related by blood or any other individuals with a close association to the employee equivalent to a family relationship

Intermittent leave increment expansion:

The new law also allows the employee leave to be intermittent over a full 12-month period. The previous limit was 24 consecutive weeks.

Bonding leave consent:

Intermittent leave for bonding is at the employee’s option and no longer requires the employer’s consent.

Reduced notice requirement:

The Act reduces the advance notice requirement to the employer from 30 days to 15 days when the request is to care for a “qualified” family member with a serious health condition. Other leave requests still require 30 days’ notice.

George Gomez is vice president, specializing in benefits at OneGroup. He can be reached at 212-284-9029 or GGomez@OneGroup.com.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

For Immediate assistance call 1-800-268-1830

There have been a lot of workers’ compensation updates this year. Did your business keep up?

By Brett Findlay

Workers’ compensation can be a contractor’s largest variable. It’s also a critical component in bid competitiveness and project eligibility. That’s why it’s imperative that all contractors (and business owners of any industry) know what’s happening with workers’ compensation in real time. Over the past year, there have been three major changes to workers’ compensation in New York.

First: Workers’ Compensation Loss Costs Decrease

Perhaps the biggest change to workers’ compensation law was the 7/13/18 filing submitted by the New York State Insurance Rating Board, decreasing overall workers’ compensation loss costs. The New York State Department of Financial Services approved it, and the rates were published on July 31, 2018. On average, rates decreased nearly 12% across all classifications and became effective on October 1, 2018.

For construction-specific classifications, rates are down an average of nearly 13.5% with several classification rates dropping close to 30%. This much rate fluctuation caused some volatility in the insurance marketplace. Insurance carriers may use higher loss cost multipliers (amongst other techniques) to offset rate decreases.

Second: Payroll Limitations Increase

The maximum weekly payroll reporting limitation increases this month. Effective July 1, 2019, the new payroll reporting limit for eligible classifications will be $1,401.17. That means that in New York State, eligible contractors are allowed to limit the payroll they report to their workers’ compensation carriers to this amount – thereby decreasing their workers’ compensation expense. This applies even if your employees earn wages above $1,401.17 on a weekly basis. The cap, or limitation, has steadily increased over the past four years and this update reflects general economic inflation.

Third: Workers’ Compensation Benefit Increase

The maximum weekly workers’ compensation benefit available to employees is increasing to $934.11. Workers’ compensation indemnity benefits are not paid for the first seven days of lost time unless that disability extends beyond fourteen days. At that point, a worker can receive benefits from the first day of work off the job. The weekly benefit is 2/3 of the worker’s average weekly wage from the previous year multiplied by their percentage of disability, but capped at the state max rate ($934.11).

For example, if an employee made $800 per week and is completely disabled (100%), they would receive $528 per week in indemnity benefits. The maximum weekly benefit has increased on an annual basis since 2007 and is an important component to consider if you have any loss experience due to its possible impact on your experience modification rating. It is likely that the benefit cap will continue to increase annually.

Workers’ compensation is a large part of any contractor’s insurance program. It’s important to be in front of any possible changes to your program in order to be prepared for any potential impacts they could have on your company.

Brett Findlay is a senior business & construction risk specialist at OneGroup. He can be reached at 315-280-6376 or BFindlay@OneGroup.com.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

For Immediate assistance call 1-800-268-1830

What could a wellness program mean to your company?

By Terri Mullett

The first step in implementing a wellness program at your workplace is to assemble an internal team to do it. Choose wisely – the two factors will make or break your committee’s success are your team members’ enthusiasm and senior-level support/participation. Since this is the team tasked with engaging employees and spreading wellness attitudes throughout the organization, it’s important to have a strong group leading the effort.

Once assembled, your team should develop a mission statement. Team members can then use the mission statement to brainstorm wellness-promoting ideas. From there they can explore health-promoting activities, talk about how to distribute information, and make action plans for their ideas.

When planning out the year’s programs, keep in mind these tips:

• Wellness activities should be open to all employees; not just those covered by the group health plan.
• Activities should touch not only on the obvious topics like exercise and nutrition, but include campaigns for mental wellness and financial wellness.
• Incentivize. Offering rewards significantly increases participation rates.
• Remember to get feedback. Surveying employees helps you track the interest in your programs and helps you gather new ideas for future campaigns.

Over the years, OneGroup has helped companies implement a variety of successful wellness challenges and informational campaigns. Many of these are repeated each year due to employee enthusiasm. Healthy eating programs and weight loss challenges are some of the most popular. Walking contests, regional races, exercise videos and dancing challenges have also been a big hit with employee populations. Financial wellness one-on-one sessions are offered and well attended, and campaigns about employee assistance program resources and stress management are also popular options.

Terri Mullett is a senior employee benefits consultant at OneGroup. She can be reached at 315-418-4964 or TMullett@OneGroup.com.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

For Immediate assistance call 1-800-268-1830

Medical providers may soon see an increase in reimbursement. Here’s what that means for you.

By Matt Banks

April 2019 Update: The NYS Workers’ Compensation Board recently released an update to its Medical Fee Schedule. The update increases reimbursement to providers treating WC patients.

The rates for reimbursement have essentially remained unchanged since 1996, with rates remaining well below the rate of inflation. The new methodology for calculating these fees remains unchanged and fee schedules are both region and activity-specific. The revised fee schedule includes an overall 5% increase for all provider types and additional increases for certain specialty groups to raise the number of authorized providers for injured workers. The proposed fee schedule affects medical, podiatry, psychological and chiropractic treatment.

While this may increase the medical costs of WC claims, the increased rates would incentivize medical professionals to provide care for work-related injuries. The main goal of the rate increase is to ensure NY providers receive fair and reasonable reimbursement for prompt, quality treatment to our injured workers. Regions with shortages of medical providers authorized to treat injured workers may see further increases to raise accessibility.

The changes were implemented on April 1, 2019.

Matt Banks is a Senior Risk Management Claim Representative at OneGroup. He can be reached at 315-558-6790 or MBanks@OneGroup.com.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

For Immediate assistance call 1-800-268-1830

Hiring a payroll provider? Here’s what you need to know.

By Rina Corigliano-Hart

Are you considering moving to a new payroll provider? Hiring your first employee(s) and need a payroll solution? Choosing the right payroll provider can reduce errors and save you valuable time and energy.

If you can, start with a referral from someone you trust. OneGroup has worked with many payroll providers in the past and is more than equipped to help you find one that fits your needs. Check with similar businesses in your area, too. Payroll providers working with businesses like yours will speak your language and understand your unique situations.

Once you narrow the field it’s time to take a closer look at what each provider can do for you. Your payroll company should do three things: pay your employees on time, pay your payroll taxes on time, and file your payroll tax forms on time. Any additional features should be what you specifically need.

After all, there is such a thing as too much service. Consider how much you plan on growing your business, and how many full-time, part-time and contract employees you will have on your payroll. Do you need a provider that can handle different state and federal taxes? Do you need human resources services in addition to payroll? ACA tracking and reporting capabilities? Will you be offering employees benefits that necessitate deductions? All of these features and services can add up. Make sure the payroll package offered meets your requirements, but don’t be fooled into buying more than you need.

If you are transitioning to a new provider because your current one is not meeting your expectations, remember that the best time to switch is the beginning of the year. That’s when your pay cycle starts with a clean slate. Alternatively, you could aim for the end of a quarter when your quarterly reports are readily available.

OneGroup has helped many companies find the right payroll providers for their unique situations. If you’d like the advice of any of our experts or specialists, just reach out.

Rina Corigliano-Hart is a OneSelect Business Account Executive at OneGroup. She can be reached at 315-413-4492 or RHart@OneGroup.com.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

For Immediate assistance call 1-800-268-1830

What a recall might look like for your business and how you can prevent it

By Abraham Danaher

Dear business owners: If you found out today that the plastic your company uses to manufacture all of its products was contaminated, what would you do?

Product recalls can be devastating.

On November 18, 2014, the National Highway & Traffic Safety Administration called for a nation-wide recall of all Takata airbags after dangerous defects in the product were discovered.

The recall ended up affecting 19 automakers, 42 million vehicles and 65 million airbags.

The scope of this recall was massive, and so was its effect on Takata. In lieu of the recall and the $10 billion in liability that the company owed, Takata was forced to file for Chapter 11 Bankruptcy.

While the Takata recall is an extreme example, remember that not all recalls involve international companies and billion dollar liabilities. Any company can be devastated by product recalls.

In 2017, Quality Foam, a company based in Brooklyn, NY, recalled over 12,000 mattresses. The products posed a fire hazard to customers and failed to meet the required flammability standards for mattresses. No one was hurt by the product and Quality Foam did not go bankrupt, but the company needed to provide all customers of the recalled mattress a free mattress cover to bring the product into compliance. It was costly fix – both in the monetary sense and to the company’s reputation.

There are two ways you can protect your business:

Product Liability Coverage: This insurance covers a product that fails and causes direct bodily injury or property damage to the customer or any other party.

Product Recall Insurance: This covers expenses a company would incur if they were forced to pull a product off the shelves. This includes transporting faulty products to another store, editing or disposing of them, hiring additional staff to help manage the situation, repairing and replacing the product, and the costs associated with public relations and media controlling. Most policies also include coverage for legal defense and disbursements, forensic inspections or internal investigations.

Abraham Danaher worked as an intern at OneGroup in 2018.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

For Immediate assistance call 1-800-268-1830