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Collision coverage is a type of auto insurance that can help pay for damage to your vehicle from collisions, regardless of who was at fault in such incidents. Unless you’re leasing or financing your car, collision coverage isn’t typically required. However, it’s generally recommended to protect yourself from costly out-of-pocket costs associated with vehicular collisions by purchasing this insurance. Read on to learn more about collision coverage. What Does Collision Coverage Help Cover? Collision coverage may help pay for vehicle repairs and replacements caused by the following types of collisions: Collisions with objects (e.g., trees and guardrails) Collisions with other vehicles Single-car accidents (e.g., rollovers) Please note that collision coverage is designed to help pay for damage to your vehicle. Damage to other drivers’ vehicles will typically be covered by your auto liability coverage. How Does Collision Coverage Work? Your collision coverage will likely have a deductible, which is the amount you must pay out of pocket before your policy kicks in to help pay for a claim. Depending on your insurer, you may be able to change your deductible. If you choose a lower deductible, your premiums will typically increase, but you’ll pay fewer out-of-pocket costs for claims. Likewise, if you raise your deductible, your premiums may decrease, but you will likely have to pay more upfront before your policy helps cover claims. Your collision coverage should also have a limit, which is the total amount your insurer will compensate you for a covered loss. Your coverage limit will typically equal the actual cash value of your vehicle, minus depreciation. Keep in mind, this may not be enough to replace your old vehicle if your vehicle is totaled in a collision. Contact the Cottingham & Butler team today to ensure you have adequate protection for your vehicle. This article is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact a Cottingham & Butler representative directly for appropriate guidance.

Auto insurance is one of the most frequently purchased types of coverage in the United States. However, while these policies may be common, they can still be complex and nuanced. Policyholders must be diligent and meticulous to ensure they fully understand their auto coverage and have ample financial protection. One of the most common and crucial components of an auto insurance policy is adequate liability coverage. Any time a driver gets behind the wheel, they risk being involved in accidents that could harm others and incur devastating financial consequences. This article provides an overview of auto liability coverage and its importance. What Is Auto Liability Coverage? The liability portion of auto insurance is strongly advisable and is usually required by law. Although minimum requirements may vary among states, all drivers are generally mandated to carry certain liability coverage to ensure they can pay for losses for which they are at fault. Liability coverage can insulate drivers from significant losses affecting third parties, including the following: Bodily injury—If a policyholder is responsible for an accident that injures another party, such as a pedestrian or occupants of another vehicle, this coverage can help pay resulting expenses, such as: Medical bills Lost wages Legal expenses Property damage—If a policyholder is at fault for damaging someone else’s property, such as by colliding with another vehicle or crashing into a building, this coverage can provide financial assistance to compensate affected parties and pay for costs arising from resulting lawsuits. Most auto insurance includes three separate liability limits within a policy. These clauses establish the maximum amount of financial aid capable of being covered and generally are listed as the following: Bodily injury liability limit per person Bodily injury liability limit per accident Property damage liability limit Another type of coverage that could help you financially protect yourself in an accident is uninsured/underinsured motorist coverage. This coverage, which is sometimes sold separately as uninsured motorist coverage and underinsured motorist coverage, can often be added to your personal auto insurance policy to help you avoid high out-of-pocket costs if you’re involved in an accident with a driver who doesn’t have any liability coverage (uninsured motorist coverage) or doesn’t have enough liability coverage (underinsured motorist coverage). Ensuring Adequate Coverage Motorists should consult with a qualified insurance professional to understand applicable auto insurance requirements. Failing to comply with relevant laws could lead to significant fines and legal penalties. Their lender may also require those who purchased their vehicles with the help of an auto loan to adhere to additional requirements. Even if not mandated to do so, carrying sufficient auto liability coverage is strongly advisable. Without suitable insurance, an accident could lead to devastating out-of-pocket costs that jeopardize a driver’s financial situation. It’s also essential to understand the limitations of auto liability coverage, which should not be relied upon to cover a policyholder’s own losses. Such financial assistance generally must be acquired through including additional coverages in an auto insurance policy, such as the following: Collision coverage—This may help pay for damage sustained by a policyholder’s vehicle resulting from striking another car or stationary object (e.g., building, fence, tree) Comprehensive coverage—This may provide coverage for incidents not included in collision coverage, such as fires, crime and severe weather. Medical payments coverage—This may provide financial assistance for a policyholder and their passengers if they are injured in an accident, regardless of who was at fault. Making Sure You’re Covered Auto liability coverage is an essential form of financial protection for any person who owns or operates a motor vehicle. For more information or guidance regarding optimal auto insurance solutions, contact Cottingham & Butler today. This article is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact a Cottingham & Butler representative directly for appropriate guidance.

As industries expand and regulations tighten, the potential for pollution incidents and other environmental mishaps increases. In response to these challenges, many businesses are turning to environmental insurance to mitigate their risks. Let's delve into the need-to-know details of what environmental insurance is and why it's crucial to consider. What is Environmental Insurance? Environmental insurance, also known as pollution liability insurance, is a specialized form of coverage designed to protect businesses from the financial consequences of pollution incidents or environmental damage. This type of insurance typically covers liabilities arising from pollution events on a company's owned or operated properties, as well as liabilities associated with products or services that cause environmental harm. Why is Environmental Insurance Important? Financial Protection: Environmental cleanup and remediation can be exorbitantly expensive. In the event of a pollution incident, businesses may face costs related to investigation, cleanup, legal defense, and potential third-party claims. Environmental insurance provides financial protection against these unforeseen expenses, helping businesses avoid significant financial losses that could threaten their viability. Regulatory Compliance: Environmental regulations are becoming increasingly stringent across the globe. Businesses that fail to comply with these regulations may face fines, penalties, and even legal action. Environmental insurance can help businesses navigate complex regulatory landscapes by providing coverage for liabilities related to regulatory violations. Risk Management: Pollution incidents can have far-reaching consequences, including damage to property, harm to natural resources, and adverse health effects on individuals. By obtaining environmental insurance, businesses can effectively manage their risk exposure and safeguard against the potential fallout of environmental accidents. This proactive approach to risk management demonstrates a commitment to environmental stewardship and sustainability. Peace of Mind: Operating a business comes with inherent risks. Environmental insurance offers peace of mind by providing a safety net against the unpredictable consequences of pollution events. With the knowledge that they are adequately protected, businesses can focus on their operations and growth without the constant worry of environmental liabilities looming over their heads. Market Competitiveness: In today's environmentally conscious marketplace, consumers, investors, and regulators increasingly expect businesses to demonstrate their commitment to environmental responsibility. Having environmental insurance in place can enhance a company's reputation and credibility by showcasing its proactive approach to managing environmental risks. This can be particularly advantageous when competing for contracts, attracting investors, or differentiating oneself in the market. In an era defined by environmental awareness and regulatory scrutiny, environmental insurance has emerged as a critical tool for businesses across various industries. By providing financial protection, ensuring regulatory compliance, facilitating effective risk management, offering peace of mind, and enhancing market competitiveness, environmental insurance helps businesses navigate the complexities of environmental liabilities with confidence. As the global focus on environmental sustainability continues to intensify, the importance of environmental insurance in safeguarding businesses against the repercussions of pollution incidents cannot be overstated. For businesses seeking comprehensive risk management solutions, environmental insurance is not just an option—it's a necessity. Speak with a member of the Cottingham & Butler team today to learn more about what coverage is best suited for your operation.

Your livelihood is dependent on the survival of your business, so it is imperative that you protect it against any potential threat—big or small. For instance, a fire could destroy your business’s warehouse and the contents inside, or a burst frozen pipe could damage important documents and valuable papers. Worse, you could have trouble paying your employees during a loss because your funds are devoted to repairing damage. If self-insuring is not an option to combat these risks of loss, it is wise to obtain property insurance. This coverage comes in many forms to suit your specific needs. Before purchasing coverage, take a complete inventory of all your business property to determine how much you need to insure. This important step ensures you will have adequate coverage to continue your business in the event of a covered loss. Types of Property You May Need to Insure Here are some examples of property that are commonly insured: Buildings and other structures (leased or owned) Furniture, equipment and supplies Inventory Money and securities Records of accounts receivable Leasehold improvements and betterments you made to the rented premise Machinery/boiler Electronic data processing equipment (computers, etc.) Valued documents, books and papers Mobile property (construction equipment, etc.) Property in transit Cargo Satellite dishes Signs, fences and other outdoor property not directly attached to the building Intangible property (goodwill, trademarks, etc.) Business contingency for suppliers Ordinary payroll Extra expenses as a result of loss Types of Property Insurance Policies Basic property insurance covers losses due to fire or lightning, including the cost of removing property as a way to protect it from further damage. Should you want to purchase more than basic coverage, you can buy a standard policy that provides coverage for extended perils, such as floods, windstorms, hail, earthquakes, acts of terrorism, explosions, riots, smoke, civil commotions, and vehicles that damage your property. Beyond that, coverage for vandalism and malicious mischief can also be included. Are You Buying Enough? One of the most important aspects of purchasing property insurance is making sure that you have purchased enough coverage to be adequately protected. A typical policy will provide the replacement cost value for your building and the actual cash value for your business property. Replacement cost value is the amount that is necessary to replace or rebuild your building or repair damages with similar materials, without considering depreciation. Actual cash value, on the other hand, is the value of your property when it is damaged or destroyed. This amount is typically determined by subtracting the depreciation from the replacement cost value. Most property insurance policies include a coinsurance clause, which requires you, the policyholder, to share the cost of covered services up to a moderate percentage of the actual cash value of the property. This will allow you to receive full coverage for your losses. Should you decide to purchase inadequate coverage for your property, you may be obligated to pay a percentage of all losses, even if they are listed in the policy. Cottingham & Butler understands that determining your business’s value is critical, so we’re here to help. Contact us today to learn more about our property insurance and loss control solutions to protect your business. This article is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact a Cottingham & Butler representative directly for appropriate guidance.

The only way to effectively protect the assets of your business is to carry adequate commercial general liability (CGL) insurance coverage. CGL protects your business from damages caused by bodily injury or property damage for which your business is found to be legally liable. What Does CGL Cover? A typical CGL policy provides coverage for claims of bodily injury or other physical injury, personal injury (libel or slander), advertising injury, and property damage as a result of your products, premises, or operations, and can be offered as a package policy with other coverages such as property, crime, automobile and more. As a safeguard against liability, CGL enables you to continue your normal operations while dealing with real or fraudulent claims of negligence or wrongdoing. CGL policies also provide coverage for the cost of defending and settling claims. Here is more detail into what a typical CGL policy may cover: Automatic additional insured: Coverage is provided for written contracts, agreements and permits. Personal and advertising injury: Protects against offenses made by you or your staff during the course of business, such as libel, slander, disparagement, or copyright infringement in advertisements. Defense costs: Provides coverage for legal expenses for liability claims brought against your business, regardless of who is at fault. Medical expenses: Provides coverage for medical expenses if someone is injured on your premises or by your products. Premises and operations liability: Provides coverage for bodily injury and property damage sustained by others on your premises or in conjunction with your business operations. Product liability: Provides coverage for bodily injury and property damage sustained by others as a result of your products. How Much Coverage Does Your Business Need? The amount of coverage that your business needs depends on three factors: perceived risk, where you operate your business, and the type of products you manufacture. Perceived risk: Consider the amount of risk associated with your business operations and functions. For instance, if you manufacture heavy machinery you would generally need more coverage as compared to another organization that manufactures stuffed animals. Premises and operations liability: If you operate in a state that has a reputation for rewarding high damages, then you may wish to purchase higher limits of liability. Type of product manufactured: If you manufacture a dangerous product, you may want to carry higher limits of liability. Remember, you can purchase an Umbrella Liability policy to help achieve the desired limit of liability. Other Ways to Protect Your Business, In Addition to CGL Here are some other tips for protecting your business. Establish a high standard for product quality control at your organization. Keep all company records up to date and accurate. Train your employees thoroughly and properly. Reach out to the Cottingham & Butler team for further safety and compliance information. Cottingham & Butler understands that your business needs to be protected, and we're here to help. Please contact us today to learn more about our risk management and insurance solutions. This article is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact a Cottingham & Butler representative directly for appropriate advice.

As cyberattacks become more frequent and costly, organizations must maximize their financial protection against related losses by purchasing sufficient insurance. Cyber coverage, also known as cyber liability insurance, can help organizations pay for a range of expenses that may result from cyber incidents—including (but not limited to) data breaches, ransomware attacks, and phishing scams. Specific cyber insurance offerings differ between carriers. Furthermore, organizations’ coverage needs may vary based on their particular exposures. In any case, cyber insurance agreements typically fall into two categories: first-party coverage and third-party coverage. Policyholders should have a clear understanding of both categories of coverage to comprehend the key protections offered by their cyber insurance. First-party Coverage First-party cyber insurance can offer financial protection for losses that an organization directly sustains from a cyber incident. Covered losses generally include the following: Incident response costs —This coverage can help pay the costs associated with responding to a cyber incident. These costs may include utilizing IT forensics to investigate the breach, restoring damaged systems, notifying affected customers, and setting up call center services. Legal costs —Such coverage can help pay for legal counsel to assist with any notification or regulatory obligations resulting from a cyber incident. Data recovery costs —This coverage can help recover expenses related to reconstituting data that may have been deleted or corrupted during a cyber incident. Business interruption losses —Such coverage can help reimburse lost profits or additional costs incurred due to the unavailability of IT systems or critical data amid a cyber incident. Cyber extortion losses —This coverage can help pay costs associated with hiring extortion response specialists to evaluate recovery options and negotiate ransom payment demands (if applicable) during a cyber incident. Reputational damage —Such coverage can help pay for crisis management and public relations services related to a cyber incident. Third-party Coverage Third-party cyber insurance can provide financial protection for claims made, fines incurred, or legal action taken against an organization due to a cyber incident. Types of third-party coverage usually include the following: Data privacy liability —This coverage can help recover the costs of dealing with third parties who had their information compromised during a cyber incident. These costs may include handling third-party lawsuits or legal disputes, offering credit-watch services, and providing additional compensation. Regulatory defense —Such coverage can help pay fines, penalties, and other defense costs related to regulatory action or privacy law violations stemming from a cyber incident. Media liability —This coverage can help reimburse defense costs and civil damages resulting from defamation, libel, slander, and negligence allegations associated with the publication of content in electronic or print media. Multimedia liability coverage can also offer protection amid copyright, trademark, or intellectual property infringement incidents. As a whole, it’s evident that cyber insurance can make all the difference in helping organizations avoid large-scale financial losses amid cyber incidents. Organizations should consult trusted insurance professionals to discuss their particular coverage needs. Contact us today for more risk management guidance and coverage solutions. This article is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact a Cottingham & Butler representative directly for appropriate guidance.

A West Virginia manufacturing company wanted to communicate more effectively and implement a holistic benefits package to compete with other surrounding employers. Cottingham & Butler’s employee benefits team got to work by utilizing our unique benchmarking tool to analyze the data and bring various plan options to best fit their employees. Following the employer’s decisions to ensure their employees were appropriately covered by the non-medical lines of coverage, the next most important component was communicating the wonderful enhancements and allowing employees to use technology to enroll versus the outdated paper enrollment forms. They used Cottingham & Butler’s proprietary enrollment text system called BETSY . Our Results Paid Life & Disability Review We reviewed the company’s paid life insurance and disability to restructure the plan and adequately insure employees. This led to a $9M increase in life insurance protection and a weekly income protection increase of $30k. Open Enrollment Solutions After we implemented our easy-to-use and efficient open enrollment solution, BETSY, we were able to move away from the dated paper enrollment process, which allows employees the ability to enroll anywhere at any time and creates administrative ease for HR staff. Enhanced Benefit Plan Communications By offering a wide variety of communication mediums in phased approaches, there was a 100% completion rate and over 50% enrollment in all coverages. Enrollment Satisfaction & Utilization Employees reported back appreciating the upgrades to the communications and benefit plan, according to the employee feedback survey.

After several years of balancing the lose-lose situation of healthcare cost increases and employee satisfaction, a Wisconsin school district decided it was time to do something truly different to change the trajectory of its future. Cottingham & Butler’s benefits team pointed out that a leading driver of the district’s cost was not the cost per person for insurance, but rather the number of people being covered by the district plan, due to the generous health plan design offered which is attracting the employees’ families. Instead of the district increasing costs for those families or penalizing working spouses, as many other employers would do in this situation, Cottingham & Butler introduced an innovative alternative option to the district, the Family Advantage Health Plan (FAHP). If an employee selects another employer-sponsored health plan, other than the school district’s, the FAHP provides families an opportunity to have 100% of their out-of-pocket expenses paid for by the district, ultimately saving these employees over $5,000 annually in healthcare expenses, while simultaneously saving the district over $10,000 per employee. A true win-win benefit. Our Results Immediate Cost Savings Given the 20% reduction in enrollment, the district saved $307,000 in premiums alone that would have been paid to the insurance company. Added Employee Value For the 90 members enrolled in the FAHP, the district paid $104,500 in deductible and out-of-pocket expenses, which now can be used by employees for other expenses. Improving Overall Risk By aligning risk and incentives, the district dramatically improved the risk of their group and future insurance costs by experiencing a reduced loss ratio of 116% in 2021 to 65% in 2022.

A Midwest Native American Tribe was facing an unsustainable increase in their health insurance costs. Cottingham & Butler’s tribal nations team was invited to conduct our 3C’s analysis, where we benchmark coverage, cost, and consumption. This analysis leads to identifying areas of opportunity and developing targeted quantifiable recommendations. Medicare Like Rates We successfully implemented Medicare Like Rates (MLR) for all eligible claims for both facility and professional services. This strategy has hit $10M in savings in just the first 3 years. Sponsorship We implemented a marketplace program for short-term and ongoing high-cost claimants. This has led to $8M in savings within the first 3 years. Out-of-Network Reference-Based Pricing This pricing was implemented for large out-of-network spend and is primarily used for mental health and substance abuse. This addition has led to $1.2M in savings. Pharmacy Benefits Optimization A change in their Pharmacy Benefits Manager was recommended. The new Pharmacy Benefit Optimizer (PBO) was implemented with better pricing and traditional rebates on in-house claims leading to $600K in savings.

A county in northeastern Wisconsin was facing a 6% increase in their health insurance costs. Cottingham & Butler's public sector team was invited to conduct our 3C's analysis, where we benchmark coverage, cost, and consumption compared to peer counties and municipalities in the area. This analysis leads to identifying areas for opportunity and allows us to make targeted quantifiable recommendations. Pharmacy Contract Review We renegotiated the pharmacy benefit manager contract, moving from a 3-year to a 1-year contract. We also introduced step-therapy and coupon tracking on medications that led to $115k in savings. Tenure-Based Opt Out We implemented a $5,000 cash opt-out based on tenure. This was an added benefit offered to employees with over 20 years of service to the County that led to over $84k in savings. High-Performance Network We recommended that the County introduce a tiered high-performance network, incenting members (but not mandating them) to use high-quality, low-cost providers leading to over $280k in savings.

We’re all too familiar with the challenges the construction trades are facing going into the next 24-month cycle. Labor shortages, supply chain disruptions, hard cost escalations, soft cost inflation, and logistics issues with CDL shortages— it seems the only things we’re not short of are challenges these days. Thankfully, too much opportunity is a great challenge to have IF we remember the nature of the opportunity can change the risks it carries with it. Retainage is one of those risks. It’s expected. You try to get it waived or redline it and hope nobody catches it on the signed copy but, more often than not, it’s just another accepted part of the cost of doing business. Remember, though, it’s a percentage, so it scales. As your costs scale, so does the impact on your cash flow. As an example, say you’ve got a $30,000,000 project that would have been a $26,000,000 project last year; the project has a 5% retainage and a 10-month window to substantial completion. First, the obvious. At the end of this project last year, you would have floated a total of $1,300,000. But this year, due to the cost explosion, you’re floating an extra $200,000 ($1,500,000). Again, this variance scales. In other words, on how many projects will this be a factor? 3 projects mean you’re floating $600,000 more this year than last year. Is your liquidity ready to carry that extra burden on cash flow? In January of this year, AGC released a finding indicating that 89% of their responding members had reported experiencing delays on their projects. It would be impractical not to consider the impact of delays. In the above $30,000,000 example, you’re running off $3,000,000 a month which includes your 5% retainage. After five months, you’ve got $750,000 out when that delay hits. On top of the liquidated damages, how long can you float that extra retainage? Time to hit the usual place, the bank line….that's what it's there for, right? Unfortunately, you must remember that the Fed just raised interest rates and has more increases scheduled. Don’t let a profitable year turn into a painful search for the hole in your pocket. If you’re interested in best-in-class tools to avoid these hurdles, we’re just a phone call away. Ken Fontana, Surety Manager Cottingham & Butler’s Risk Management Division 563.587.6341 | kfontana@cottinghambutler.com Ken began his career in the insurance industry in 1996 at the corporate offices of Horace Mann Insurance. After relocating to Wyoming, he spent several years managing corporate safety programs, insurance, and claims as the RMO for a nationally exposed company engaged in numerous state and federal contracts including operations at three military bases, the Denver Federal Center, and HUD program management. He has been a licensed insurance agent for 20 years with the last 10 focused strictly on contract and commercial surety. Ken’s relationships with the nation’s top sureties and his experience give him a uniquely well-rounded approach to your overall surety, bonding, and subcontractor default insurance needs.

When you're looking for a solid bonding relationship, shouldn't it be built on a complete risk review and not simply on a complete financial review?  Sure, your financials are strong, but they can be misleading or downright unreliable if your surety team hasn't gone beyond just delivering a bond. Imagine facing an uncovered loss with a full backlog and no money to prosecute the work. It's bonded work and that means the surety must step in and complete it; you didn't forget you personally indemnified that bond, did you? Imagine facing a serious loss where your limits were adequate to your company's net worth 3 years ago but haven't contemplated that new $4,000,000 in revenue you've added since then. Are you a bigger target at $6,000,000 revenue than you were at $2,000,000? You've bonded these jobs, and you've produced a clear, contractual financial guarantee in which you are fully indemnifying the surety both corporately and personally. When you set those insurance limits, didn't at least part of that calculation take into consideration the corporate veil, your protections personally against liability? Of course they did. Did you adjust those limits when you took on a project which, through that personal indemnity pierces the veil and leaves you personally exposed? This is piercing the veil from the inside. You may not experience a loss that can break through the veil head on but an uncovered loss or a loss with inadequate limits can wreak havoc on current operations and leave you staring down the barrel of a sizeable bond loss. You might enjoy personal protection from the veil on the insurance claim but what if that claim wipes out the working capital in your company? The surety still has your personal indemnity option to complete that work and pay those subs on your behalf. How's that veil doing? In most cases, it's not that one swift blow. It's usually a long-term effect of your company under siege where you and your senior management lose focus on critical day-to-day management and new growth as your energy and money pour into defending what you've built. Performance, morale, cash flow, revenue..... the spiral can be awful. We have the experience and the rounded team who will provide this in-depth review. The people who are not merely up-to-date on emerging risks but up-to-date with how fluid those risks are when considered by a company heavily involved in modern construction. The Bond Producer will get you the bond and call it a success and, yes, we do that too. We "get the bond" every day, and most days, on an hourly basis. The Surety Advisor delivers that bond along with these and other critical services that should be the standard, but we all know aren't. From clients just starting out and in search of their first $300,000 bond, to firms with over 100 years in contracting and bond lines in excess of $150,000,000, we have the experience, team, and drive to deliver beyond the bond. Ken Fontana, Surety Manager Cottingham & Butler’s Risk Management Division 563.587.6341 | kfontana@cottinghambutler.com   Ken began his career in the insurance industry in 1996 at the corporate offices of Horace Mann Insurance. After relocating to Wyoming, he spent several years managing corporate safety programs, insurance, and claims as the RMO for a nationally exposed company engaged in numerous state and federal contracts including operations at three military bases, the Denver Federal Center, and HUD program management. He has been a licensed insurance agent for 20 years with the last 10 focused strictly on contract and commercial surety. Ken’s relationships with the nation’s top sureties and his experience give him a uniquely well-rounded approach to your overall surety, bonding, and subcontractor default insurance needs.