Are your volunteers covered by your workers’ compensation policy or a separate volunteer policy? The difference affects more than you might think.

By Dan Conley

Back to school time is here! Among the teachers and students busying themselves with back to school activities and planning, you’ll find armies of volunteers lending their time and talents to school year prep as well.

Those volunteers are vital to our school systems. Make sure you know what your district would do if one of them were to get hurt or injured on the job.

Are volunteers covered by worker’s compensation if they don’t receive a paycheck?

Maybe.

Most times when a school, business or organization has volunteers performing work on its behalf, those volunteers are covered under the organization’s workers’ compensation policy. In the event a volunteer should get hurt, he or she would likely get the same benefits that a full-time employee of your organization would have. As your volunteer focuses on recovering, he or she won’t have to worry about medical bills or the money lost from time away from work.

In addition to any monetary benefits that could be paid for an injury or permanency award, the injured volunteer’s medical bills may also be covered for the life of the injury. Once an incident report is filed with the district, a claim will be run through the workers’ compensation board of whichever state the claim is filed in.

Be sure you are giving your volunteers the same safety training and risk management you give your employees. Some accidents are unavoidable but many can be prevented.

Your team, your insurance company and your budget will thank you in the long run. If you are one to volunteer like me, it’s helpful to understand the conditions surrounding the job.

For more information on the subject, feel free to reach out to discuss!

Dan Conley is a business risk specialist at OneGroup. He can be reached at 315-558-6771 or DConley@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 makes schools particularly vulnerable to cyber attacks and how school officials can prepare for a breach.

By Dennis Ast, CPCU, CCIC

Last year, we saw more local school districts suffer at the hands of cyber criminals than ever before. The NYS Education Department Board of Regents even went as far as to propose and approve an addition to their cyber regulations. Part 121, as the new addendum was called, would strengthen data privacy and security in schools and other educational agencies that need to protect personal information. There are more than 20 pending cyber related bills/resolutions awaiting consideration in the New York State Assembly.

The massive files of student and employee information housed on school computers make school districts desirable targets for cyber criminals. These cyber criminals are constantly looking for vulnerabilities and the opportunity to make some quick money. Since many school districts either don’t have the resources or have not adequately protected themselves against potential cyber attacks, sensitive school records make for easy targets.

According to the K-12 Cybersecurity Resource Center, there have been over 580 publicly-disclosed cyber-related incidents in U.S. public schools since 2016. The number of incidents in 2019 has already exceeded those of 2018.

These school attacks are not small matters, either. Just this summer, Gov. John Bel Edwards declared a state of emergency after cyber attacks hit three separate Louisiana school districts with ransomware. The attacks can take virtually any form, from cybercriminals infecting the district’s network with malware to a student hacking into the system and changing grades for money. (Yes, that last one is true.)

What can you do to minimize cyber risks at your school?

Practice good “Cyber Hygiene”: Update your software often. Use multi-factor authentication and strong password protocols. Install anti-malware software and establish protocols for remote access users. Always have a back-up of your data and test it. Most importantly, have a Cyber Response Plan. Cyber insurance should always be part of your Cyber Response Plan. Many cyber insurance programs can cover First & Third Party losses as well as crime-related losses. Not all cyber policies are created equally, so be sure to discuss your concerns with an expert who can assist in getting the right policy for you.

Dennis Ast is a senior account executive at OneGroup. He can be reached at 716-572-2410 or DAst@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

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