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The average trucker’s auto liability premiums are increasing by 9.6%. Why?  Several insurers are exiting the marketplace due to bad losses.  The insurers that remain are raising rates to outpace rising claim costs.  As a result, even good trucking companies’ costs are going up.  So what can owner-operator fleets do to keep their auto costs down? Take higher deductibles AND recover those deductibles from your owner-operators. Seems pretty simple, but the bigger deductible the cheaper your insurance.  Most fleets pass on all or a portion of those deductible costs to the owner-operator.  The challenge becomes getting the money from the owner-operator when the claim happens.  Fleets solve this problem by installing Deductible Buyback insurance.  Owner-operators pay a small premium in exchange for a deductible reimbursement.  For example, a $9 per week premium reimburses up to a $5,000 per occurrence auto deductible. Install a “Better Bobtail” policy. It is no secret that “off-the-shelf” Bobtail, which is really Non-Trucking Liability, pays very few claims.  Denied Non-Trucking Liability claims turn into your Auto Liability claims, increasing your premiums.  “Better” Non-Trucking Liability policies have broader coverage for commonly denied scenarios like trips for maintenance, commuting between terminal and garage, and while awaiting dispatch.  Consider the “Best” and broadest Non-Trucking Liability with an Unladen Liability policy.  This policy provides liability coverage while the truck is being operated with an attached empty trailer, or without any trailer at all, whether dispatched or not.   These policies have pricing that starts as low as only $5 more per month. To learn more about how your owner-operator risk management strategies stack up against the best in the business, please complete our online risk assessment. Resources The Council of Insurance Agents & Brokers (CIAB) in its second-quarter 2020 broker survey said premiums increased for the 11th consecutive quarter by an average of 9.6 percent.

In today’s market, HR professionals must adapt to the changing expectations of organizations and employees amid difficult economic conditions. As such, proactive HR leaders and professionals will approach 2024 with strategies that incorporate artificial intelligence (AI) into everyday operations, satisfy employee demands for greater compensation and flexibility, and conform to evolving compliance standards. Organizations will benefit from putting people first and responding to what their workers need. To aid HR professionals in meeting organizations’ and employees’ demands and desires, this article highlights six HR trends to follow in 2024. Artificial Intelligence In 2023, AI exploded in popularity. Many employers adopted this technology to streamline operations, enhance workflows, and improve customer experience. Looking forward, employers will increasingly leverage AI in workforce and organizational operations. As such, AI will likely play a greater role in helping employers and HR professionals make employment decisions, complete repetitive tasks, and evaluate organizational data. However, as AI becomes commonplace, employers will have to shift their focus to prioritize ethics and compliance-related issues associated with this technology. This will likely include addressing how data will be used with generative AI, who will use the technology, and how best to comply with changing laws and regulations. Furthermore, employers will continue to focus on issues of transparency, privacy, and potential discrimination when using AI in 2024. Skill Gaps and Skills-based Hiring Going into 2024, employers are still struggling to find talent with the right skill sets. Although the most recent labor report by the U.S. Bureau of Labor Statistics found there were 6.3 million unemployed individuals, pervasive skill gaps continue to challenge employers looking to attract top talent. This year, employers may refocus their hiring efforts on finding employees with the right skills rather than a specific experience or education. This concept, known as skills-based hiring, evaluates candidates based on their skills and capabilities rather than traditional qualifications, such as degrees or experience. Organizations that provide robust learning and development initiatives can consider hiring workers who are an excellent cultural fit and training them on specific skills or tasks later. By recognizing workers’ abilities to learn and develop, this hiring method allows organizations to find skilled candidates for their open roles instead of trying to mold candidates to a set job profile. New Compliance Rules Recent compliance and regulatory actions will impact organizations in 2024. Many states have enacted new benefits laws regarding paid parental, medical and family leave, retirement plan options, sick time and paid time off to vote. In 2023, the U.S. Department of Labor also proposed a new overtime rule, which is expected to address how to implement the exemption of executive, administrative and professional employees from the minimum wage and overtime requirements of the Fair Labor Standards Act (FLSA). It could also provide clarity for classifying exempt employees and increasing their salary levels under the FLSA. This rule is expected to take effect in 2024. Expanding pay transparency laws will also impact employers in 2024 and beyond. Data from the National Women’s Law Center revealed that more than 1 in 4 workers are currently covered by pay transparency laws. As more states and localities embrace pay transparency, more employers will likely be affected by these regulations. Navigating different pay transparency regulations can be challenging, especially for employers with employees in multiple states. Savvy employers will stay current with evolving state and local laws and take proactive measures to avoid potential litigation. Return to Work Employers are increasingly requiring employees to return to the office despite the widespread popularity of flexible work arrangements. According to a recent survey by ResumeBuilder, 9 in 10 organizations with office space will require employees to return to in-person work by 2024. This shift has been marked by increased scrutiny of workers and employee backlash at some organizations. Many employers worry that pressuring employees to return to the office could cause increased turnover or damage their reputation. In 2024, proactive employers will focus on balancing in-person requirements with employee expectations and desires. Employee Engagement Employee happiness and engagement have declined significantly since the beginning of the COVID-19 pandemic. A recent study by software company HR Bamboo found that employee happiness declined 6% from the start of 2020 to the present. In 2023, employee happiness dropped even quicker, with a decrease of 9% since January. Some HR experts have referred to the sharp decline in employee engagement as “the Great Gloom.” This trend indicates a strong link between employee engagement and economic and societal conditions. Furthermore, high inflation has caused many organizations to adopt cost-cutting measures, such as layoffs or heavier workloads for employees, which can increase stress, decrease morale and contribute to a negative workplace environment. In the next year, employers will increasingly focus on driving employee engagement. Savvy employers will recognize that employees’ needs and expectations shift with the economic climate and will adjust to meet evolving employee demands. These strategies may include a renewed focus on honest and transparent communication, psychological safety, fairness and belonging. Competitive Compensation Although the labor market has eased somewhat from previous years, employers predict attraction and retention challenges will persist into 2024. Many employers will respond with competitive raises to help their workforce manage the increasingly high cost of living. According to the latest Salary Budget Planning Survey by consulting firm Willis Towers Watson, U.S. employers are planning an average salary increase of 4% for 2024. This is slightly down from the 4.4% average salary increase budget in 2023 but higher than the 3.1% salary increase budget in 2021 and 2020. Employers are also embracing benefits, such as workplace flexibility and broad health care coverage, to improve the employee experience and boost attraction and retention. Summary HR professionals can stay ahead by monitoring trends that will impact the workplace in 2024 and resonate with current employees. As employee expectations continue to evolve, employers who elevate and strengthen their workforce strategies will have a competitive advantage when supporting and attracting today’s workers.

“If you only ever did the things you don’t want to do, you’d have everything you’ve ever wanted,” speaker, CNN contributor, and author of the 5-Second Rule, Mel Robbins, told attendees during her keynote address at the 10th annual Cottingham & Butler Transportation Summit. Robbins, along with political analyst Bruce Mehlman and bestselling author, Jon Gordon, shared stories, predictions, and leadership tips with attendees during keynote week as they looked to address the growing uncertainty and concerns in the world today. Every year, hundreds of trucking company owners and executives flock to the Cottingham & Butler Transportation Summit in Schaumburg, IL for one day of insight, networking, and new ideas – but with the growing threat of COVID-19, the group this year gathered virtually for a six-week series of sessions that covered the hottest topics in trucking today. You can view this year’s complete speaker lineup at www.cbummit.com. Though the current environment prevented us from gathering in person this year, the virtual series was no less impactful. For 10 years the Cottingham & Butler Transportation Summit has given trucking companies the unique opportunity to learn from some of the trucking industry’s best and connect with fellow colleagues on challenges and opportunities to grow their businesses. With this year’s shift to a virtual platform, we saw over 1,600 participate in the live and on-demand sessions. Registrants were flexible and enthusiastic about the switch to the virtual platform, actively engaging with the live Q&A sessions at the end of each presentation. Said Jim Kosak of Midwest Freight Systems, “Cottingham & Butler always brings together the best and brightest, and the virtual series has made it easier to attend.” The success of the Transportation Summit has led Cottingham & Butler to announce the all-new Transportation Summit – Unloaded series, where they will host bi-weekly sessions covering the most relevant topics facing trucking companies today. To learn more and get complete access to all of the 2020 Summit sessions, visit www.cbsummit.com to register.

Ten members of the Cottingham & Butler Food & Agribusiness team successfully completed a robust food safety training program and achieved their designations as Preventive Controls Qualified Individuals (PCQI), the leading designation for food safety professionals. “As trusted risk consultants in the Food industry, our goal is to prepare businesses for the changing landscape and provide valuable resources that go well beyond an insurance policy,” said Ryan Venti, Food & Agribusiness Risk Management Consultant. “The more we know, the better we can serve our clients.” The preventive controls qualified individual (PCQI) certificate is crucial to the management and preparation of the food safety plan and validation of preventive controls. In order to become a preventive controls qualified individual, you must successfully complete specialized training under a standardized curriculum recognized by the FDA, which was led by instructors at the world’s leading food safety consultancy and Cottingham & Butler’s food safety partner, TAG. The expertise and knowledge will help the Cottingham & Butler Food & Ag practice continually provide value to their clients and help them better manage unique loss exposures. “With heightened regulation and complexity from the Food and Drug Administration (FDA), along with the rules brought by the Food Safety Modernization Act (FSMA), it is important, now more than ever, to understand what our clients have to go through on a daily, weekly, and yearly basis.  The Cottingham & Butler Food and Agribusiness team continues to amaze me as we further the education that allows us to bring cutting-edge ideas and expertise to our clients,” Alex Portwood, Food & Agribusiness Marketer, Risk Management Practice. Certified Preventive Controls Qualified Individuals (PCQI): Ryan Butler Brian Grant Derek Mizaur Ross Milne Madison Worzalla Alex Portwood Ryan Venti Jordan Cowhey Thomas Merfeld Chase Medinger

On Monday, October 21, 2019, Cottingham & Butler announced the appointment of Andrew Butler as the company’s new Executive Chairperson, effective immediately. Butler, who has served as Vice Chairperson, President of SISCO & HealthCorp and member of the company’s Board of Directors since 2013, will now be responsible for providing oversight and direction to the Cottingham & Butler Board of Directors and the organization as a whole. Andrew succeeds his father, John Butler, who transitioned from his role as Executive Chairperson to Chairperson and will retain an active advisory role and continue to provide guidance to the business. David Becker, President & CEO, will continue to lead the company’s overall business operations. “John’s leadership and vision since 1957, has guided Cottingham & Butler to be recognized as a strong leader in our industry,” said Andrew Butler. “Everything we do at Cottingham & Butler is about serving our clients with distinction, and David and I are excited to continue to lead a team of passionate insurance professionals that deliver on that promise every day. The opportunity that lies ahead for our colleagues and most importantly, our clients, is exceptional and we are committed to providing long‐term value well into the future.” John Butler added, “I am extremely proud of the team’s accomplishments during my tenure. It is the right time to evolve our leadership as we continue to drive innovation in the industry. Andy is a talented leader and I look forward to continuing to work with him, David, and our experienced team as Chairperson. I am confident our leadership team will take Cottingham & Butler to the next level of growth, and I am tremendously optimistic about the future we are all creating together. Our people, culture, and business plan have proven to be of great value to those we serve and have produced results that are the envy of the industry.” About Cottingham & Butler Cottingham & Butler is the 5th largest privately held insurance broker in the United States and a recognized leader in offering innovative property & casualty and employee benefit insurance solutions. The privately held organization was founded in 1887 and is headquartered in Dubuque, Iowa, employing over 1,000 employees across the U.S.

Press release published by The Council of Insurance Agents & Brokers. David Becker, chief executive officer of Cottingham & Butler, Inc., in Dubuque, Iowa, was elected 2020 Chairman of The Council of Insurance Agents & Brokers, as announced today by The Council. He succeeds Martin P. Hughes, executive chairman of the Board of Directors of HUB International in Chicago. Becker was elected during The Council’s 106th annual Insurance Leadership Forum (ILF) in Colorado Springs, Colo. The Insurance Leadership Forum has been instrumental to the commercial property/casualty insurance industry since its beginnings in 1913, and continues to be the premier industry meeting for market leaders worldwide. “Dave has made a name for himself by approaching each day with an entrepreneurial spirit focused on how to help both his employees and clients be successful,” said Ken A. Crerar, President/CEO of The Council. “He’s engaged and pragmatic, always looking for opportunities by simply talking to people and listening. He’s also one of our champions for finding better ways to recruit and develop young talent to the brokerage industry, which is very much a priority of ours. We’re looking forward to having him lead our organization in the coming year.” Since Becker started with Cottingham & Butler in January 2004, the company’s annual revenues have increased more than six-fold, propelling C&B to become one of the top 10 employers in Dubuque. C&B has also expanded its geography with Becker at the helm, with more than a quarter of C&B’s 1,000+ employees working in regional offices spread across 24 states. Prior to joining Cottingham & Butler, Becker spent eight years with McKinsey & Company in Chicago, where he was a Partner specializing in issues related to strategy and marketing. Before McKinsey, Becker worked for IBM in a sales and marketing capacity. Becker has a bachelor’s degree in Computer Science and an MBA from Washington University in St. Louis, graduating magna cum laude. He also holds a J.D. from Harvard Law School, graduating magna cum laude. Becker serves on the Board of the Greater Dubuque Development Corporation and is a member of the Washington University Olin School of Business National Council. He is active in several civic and charitable organizations including Holy Family Catholic Schools and the Foundation for Academic & Social Excellence. As Chairman of The Council, Becker leads a team of officers including Vice Chairwoman Nancy Mellard, executive vice president and General Counsel at CBIZ in Kansas City, Mo.; Treasurer Robert J. Klonk, chief executive officer of Oswald Companies in Cleveland, Ohio, and Secretary Keith Schuler, president, and chief executive officer at InterWest Insurance Services, LLC, in Sacramento, Calif. In addition to Becker’s appointment, six were newly named to The Council’s board: Jochen Koerner, Managing Director, Ecclesia Group, Germany Kate Armfield, COO & Principal, AHT Insurance, Leesburg, Va. Chris Boone, President – P&C, BXS Insurance, Jackson, Miss. Michael Christian, CEO, Risk Strategies, Boston, Ma. Lori Goltermann, CEO, US Commercial Risk & Health Solutions, Aon, Chicago, Ill. Kyle Lingscheit, CEO, PayneWest Insurance, Missoula, Mont. The Council of Insurance Agents & Brokers is the premier association for the top regional, national, and international commercial insurance and employee benefits intermediaries worldwide. Council members are market leaders who annually place 85 percent of U.S. commercial property/casualty insurance premiums and administer billions of dollars in employee benefits accounts. With expansive international reach, The Council fosters industry-wide relationships around the globe by engaging lawmakers, regulators, and stakeholders to promote the interests of its members and the valuable role they play in the mitigation of risk for their clients. Founded in 1913, The Council is based in Washington, D.C.

Cottingham & Butler has obtained information regarding the recent federal court decision overturning the ACA and wishes to provide its clients with the following update. What Happened? On Sunday, December 30, 2018, the federal judge in Texas who declared the Affordable Care Act unconstitutional earlier in December stayed his ruling pending an appeal since residents in many states have already purchased their health insurance plans for 2019. Summary of Court Action U.S. District Judge Reed O’Connor upheld his initial Dec. 14 ruling, but said Americans would face great uncertainty during the appeal without a stay. The judge did say the states intervening to defend the ACA failed to show a likelihood they could succeed on appeal at the U.S. Court of Appeals for the Fifth Circuit. While the judge granted Partial Final Judgment declaring the Individual Mandate unconstitutional and inseverable from the rest of the ACA, he has allowed the ACA to continue to operate during the appeals process. What’s Next? We suggest our clients continue to comply with the ACA until the appeals process is completed. We will continue to monitor this situation and will provide ongoing updates as more information becomes available. Contact Us if You Have Questions Cottingham & Butler is prepared to assist you through this process. If you have any questions, please contact your Cottingham & Butler representative.

Cottingham & Butler has obtained information regarding the recent federal court decision overturning the ACA and wishes to provide its clients with the following update. What Happened? On Friday, December 14, 2018, a U.S. federal district court judge in Texas ruled that the ACA was unconstitutional, overturning Obamacare. Summary of Court Action In 2012, the U.S. Supreme Court ruled that the ACA was constitutional (legal) based on the idea that the Individual Mandate that penalized people for not buying health care coverage was a tax. Congress does not have the power to force individuals to buy insurance, but it can tax them if they do not. The Tax Cuts and Jobs Act of 2017 reduced the Individual Mandate tax penalty to $0, effectively removing the tax. The Texas federal court ruled that without the tax the Individual Mandate is no longer a valid expression of Congressional power and is not enforceable. Because the Individual Mandate is inseparably linked to the rest of the ACA, the rest of the ACA becomes unconstitutional as well. Given the current administration’s prior attempts to overturn the ACA, it is highly doubtful it will appeal the decision. While it is unclear whether there are any other parties with legal standing in the case who would mount an appeal, an appeal is possible. In the event of an appeal, the ACA could be temporarily reinstated while an appeals court considers the matter. What’s Next? Given the broad effect of the ruling, especially during the ACA MarketPlace open enrollment, the full effect of the decision is not yet known.  It is possible that either the President or Congress may take short-term emergency action, especially with regard to the potential loss of coverage in the ACA MarketPlace. We suggest our clients take no drastic action in the short term until the situation stabilizes. We will continue to monitor this situation and will provide ongoing updates as more information becomes available. Contact Us if You Have Questions Cottingham & Butler is prepared to assist you through this process. If you have any questions, please contact your Cottingham & Butler representative.

Cottingham & Butler has obtained information regarding the extension of the plan year 2018 ACA reporting deadlines and wishes to provide its clients with the following update. What Happened? The IRS has issued Notice 2018-94, which provides a 30-day extension to the deadline for Applicable Large Employers (“ALEs”) to distribute the 2018 ACA reporting forms to employees and covered individuals. Summary of Changes The deadline for furnishing forms to individuals under Sections 6055 and 6056 for 2018 has been extended from Jan. 31, 2019, to March 4, 2019. This means employers have until March 4, 2019, to provide employees with the required 1095-C forms. The deadline for providing paper and electronic copies of forms to the IRS has not changed.  The deadline for paper filing is February 28, 2019. ALEs filing 250 or more returns must file electronically through the IRS’s AIR system. The deadline for electronic filing is April 1, 2019. What’s Next? ALE employers may take an extra 30 days to provide employees with their 1095-C forms but must be sure to file with the IRS by the existing paper/electronic filing deadlines. Contact Us if You Have Questions Cottingham & Butler is prepared to assist you through this process. If you have any questions, please contact your Cottingham & Butler representative.

Complying with the reporting requirements in a claims-made policy can sometimes feel like navigating through a minefield. Claims-made policies contain a number of traps for the unwary that could leave you with no insurance coverage, so the importance of having someone in your organization trained on these policies cannot be overstated. What is a 'claims-made' policy? There are two basic types of insurance policies: occurrence-based policies and claims-made policies. Common occurrence-based policies include commercial auto, general liability, and property policies. These policies cover claims that arise out of damage or injury that took place during the policy period, regardless of when the claim is actually asserted. For example, if a customer slips and falls on your premises in 2016 but does not file a lawsuit until 2018, your 2016 general liability policy would respond. Claims-made policies operate very differently. Claims made policies cover only those claims made during the policy period, regardless of when the injury occurred (although most policies require the injury to occur after a “retroactive date” stated in the policy). For example, if an employee files a complaint with the EEOC in 2018 alleging that he was discriminated against by your company back in 2017, your 2018 employment practices liability policy would respond because that was when the claim was made. Common claims made policies include employment practices liability, directors and officers, errors and omissions, product recall, cyber, professional liability, and fiduciary policies. What are the biggest pitfalls associated with claims-made policies? Failing to recognize that a claim has been made Recognizing a claim on an occurrence-based policy is fairly easy. If your building is damaged in a storm or your employee is in an auto accident while on duty, you have a claim. Recognizing a claim on a claims-made policy is not as straightforward. Depending on the wording of your policy, all of the following can constitute a claim that must be reported to the insurer as soon as practicable: Any written demand Service of a complaint or similar pleading, Any arbitration, mediation, or other similar dispute resolution proceeding, Any criminal proceeding commenced by the return of an indictment, Any administrative or regulatory proceeding commenced by the filing of a notice of the charge, written request to interview, formal investigative order, or similar document (e.g. an EEOC, civil rights commission, or a similar notice), A written request to toll or waive a statute of limitations, A subpoena Failing to report a claim on time If a claim is made against your company in any of the above forms, you must notify your insurer as soon as practicable. If you fail to do so, the insurer can deny coverage. The following scenario illustrates a common coverage issue with claims-made policies. An officer of your company is served with a notice of charge from the EEOC on December 23rd. The officer fails to act on the notice prior to the holidays, and your insurance coverage moves to a different carrier on January 1st. After the New Year holiday, the officer reports the claim to the previous carrier. The previous carrier will deny the claim because it was not reported during the policy period. The new carrier will also deny the claim because the claim was not first made during the policy period. Your company now has no insurance coverage for this claim. What can you do to protect your company? Read your policy, and pay close attention to the definition of a “claim.” Train your employees to recognize and report claims immediately. Training on claims-made policies is available in the Cottingham & Butler Risk Management Center. Communicate with your Cottingham & Butler team if you are unsure of whether or not an event constitutes a claim. Report a notice of circumstances that may give rise to a claim. This type of notice provides a safe harbor for reporting an event that may turn into a claim in the future. This may protect you in the event that a claim arises after the expiration of the policy because you have already put the insurer on notice.

What are you charging owner-operators for damages to your trailers, cargo, or auto liability claims? The industry average is around $2,500 per line and $5,000 combined. A hefty charge for an owner-operator to handle who likely doesn’t have that kind of cash on hand. A few options trucking companies have to protect themselves and their owner-operators; escrow, post-claim, and deductible buyback. Escrow: Collect enough funds to cover these damages from the owner-operator before they take their first load. Most trucking companies take escrow in small increments from the first few settlements. While this creates better cash flow for the owner-operator, it puts the trucking company at risk of not collecting those funds if an accident occurs before the escrow is fully funded. By law, trucking companies are required to pay interest to the owner-operator on their escrow funds, which can be an administrative nightmare. Post Claim: Allow the owner-operator to make small payments on the claim after it happens. The post-claim option provides good cash flow for the owner-operator and eliminates the headache associated with escrow. However, owner-operators often part ways with the trucking company after a claim, making the post-claim process rather challenging for the trucking company. So how do you ensure you get paid? Deductible Buy Back: Allow the owner-operator to purchase an insurance policy that pays for these damage chargebacks. Around $9 of premium per week buys down $5,000 of damage deductibles. This insurance guarantees payment to the trucking company and positive cash flow for the owner-operator. Trucking companies should offer Deductible Buy Back through settlement deduction so owner-operators have easy access to purchasing this insurance.

When working with shippers, they may provide you with a contract that includes a specific list of insurance requirements that need to be fulfilled prior to doing business with them. Some examples include listing the shipper with specific limits per coverage (i.e. $1,000,000 combined single limit for Auto Liability) or being listed as additional insured on certain lines of coverage. There are many more possible requirements shippers may have, but one you may start to see more frequently is the request for a waiver of subrogation (also referred to as “transfer of rights of recovery”). What exactly is a waiver of subrogation? When requesting a waiver of subrogation from your insurance company, you are requesting your insurance company to limit or forego their rights to subrogate against a third party listed in the contract provided by the shipper in the event of a loss. As you can see, some insurance companies may be hesitant to endorse this request to your policy(ies) without reading the shipper’s contract to verify that it is, in fact, a requirement as well as encompassing the possible liabilities the insurance company (as well as the trucking company) are opening themselves up to. Some trucking companies may also be weary of requesting to endorse a waiver of subrogation on their insurance policy(ies). One option they have is to negotiate this requirement out of the contract prior to signing. While many shippers may not honor a request of this nature, it is great practice to negotiate terms in order to adequately protect the trucking company as well as their insurance company. Something to note with requesting a waiver of subrogation to be endorsed to your policy(ies) is that it may result in additional premium. Trucking companies should weigh the cost of the endorsement(s) along with the possible profit to be made working with the shipper to ensure it is profitable for their company in order to proceed. A waiver of subrogation can be added to numerous insurance coverages, such as Auto Liability, General Liability, Workers' Compensation, and Property. If there is ever a question in regards to if your current insurance policy(ies) meet contract requirements, forward the contract to your insurance agent for review. They will be able to verify which requirements are met as well as what endorsements may need to be requested in order to fulfill the contract requirements to move forward with working with shippers if desired.