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Where did you attend college, and what was your major/field of study? I attended the University of Iowa and majored in Marketing, though I also earned a Certificate in Event Planning! How did you first hear about Cottingham & Butler and the intern program? A family friend of mine mentioned Cottingham & Butler and convinced me to submit my application before a career fair. I had no intention of selling insurance and met the C&B recruiting team out of sheer circumstance by bumping into them at the fair entrance and helping them pick up some items they dropped. Some might say it was fate! Describe your experience in the Cottingham & Butler internship program. What did you learn during the program that you still use today in your full-time position? My experience was incredibly hands-on and gave me a great idea of what my career would be like at C&B. I spent multiple days a week on the road traveling with various producers and watching them prospect, win new clients, and strengthen relationships with current ones. I balanced my weeks between cold calls, meetings, and working on a project that helped support an exclusive insurance program that many of my clients are in today. The internship created a foundation of knowledge and experiences that helped me to launch my career even faster once I joined full-time. What’s your favorite memory from your time as an intern? I attended an industry conference at the beginning of the internship that gave me an inside look at our clientele and C&B’s reputation in the industry. I sat down with many of our clients and learned about their business, how it’s grown, their struggles and successes, and how C&B has fit into that picture. One of the first clients I met said, “There’s a lot of things I have to worry about every day running a trucking company, but with C&B I know insurance isn’t one of them.” I left the conference feeling like I could see myself in the producer role, and that many of the clients were cut from the same cloth I was. What do you think the Cottingham & Butler internship program offers that other internships don’t? C&B's internship is incredibly hands-on with unparalleled access to C&B’s leaders and top producers. There is no shortage of opportunities to shadow, travel, dive in, or share your ideas on how C&B could be more efficient or effective. We’ve had multiple interns create full-time roles within our walls based on ideas they had during the internship or the projects they worked on. My project was about the feasibility and demand of a hazmat-focused insurance program, and with the help of many others at C&B, we created that program and it’s still thriving today. What drew you back to Cottingham & Butler after graduation? It was a mix of the people, the programs, and the opportunity. While I never anticipated I would work in insurance, I focused more on the clientele, the resources that C&B had to support me, and the incredible people I had met throughout the internship. As bad as I wanted to succeed, within a few short weeks I had made connections with people who I felt almost wanted me to succeed more, and would assist me in any way they could. Not many are lucky enough to end their career at the same place they started it, but I knew C&B was a place I could do just that. How have you seen yourself evolve as a professional at Cottingham & Butler? I’ve become much more collaborative than I was before. I’ve always loved celebrating wins and successes with others but have been slow to trust. I’ve always had a “live and die by my own sword” type mentality but at C&B I’ve learned that you can’t do things alone. You'll get a lot further when you trust others to deliver on what they specialize in. I’ve also developed a strong passion for industry advocacy and with C&B’s encouragement and support, I’ve been able to explore that interest as well. What do you love most about your current role? Every day is different and it's impossible to get bored. Each prospective customer is like a mystery that we need to solve. It’s our job to peel back the curtain, figure out where the risk is, and then find the best way to cover that risk. There is no one-size-fits-all solution, and I’m able to utilize my attention to detail, alongside my amazing team and resources, to help our clients rest easy at night. Why should college students consider the Cottingham & Butler internship program? As someone who said, “I will sell anything but insurance,” and has now been doing just that for 6 years, you have to look past the “product” you are selling and look at the opportunity, the clientele, and the support system you are going to receive from the company you are interning for. At a minimum, you'll receive weeks of valuable hands-on experience and learn from others who are at the top of their field. At best, like me, you'll find the place you want to spend your entire career and be given endless resources and opportunities to succeed.

When Blythe Bruner first heard of Cottingham & Butler, she had just graduated from the University of Wisconsin-Platteville with a degree in Business Administration. Hungry for a role where she could learn, grow, and develop, Blythe found her calling in client service within our Transportation Practice.  “I was immediately impressed by the people, their tenure, and the expertise they possessed,” says Blythe. While the trucking and insurance industries were new territory for Blythe, her desire to learn was undeniable. Faced with complex client challenges, Blythe took advantage of the knowledge that surrounded her, learning from a variety of supervisors and mentors who were more than willing to help her learn the ropes and gain confidence in her role. Her passion drove her to dig even further, reviewing policy forms, reading articles, taking classes and obtaining a number of designations. In 2017, Blythe stepped into her first supervisory role, motivated by the support she had received when she first started at Cottingham & Butler. “I wanted to give back to the team and help others learn like my supervisors and mentors did for me,” Blythe said. “In my position, I have the opportunity to help a large team of people understand and love the industry and succeed in their personal careers.” Today, as the Director of Client Services, Blythe is always on the lookout for new faces that might be a good fit for the Cottingham & Butler team. “We are always looking for great people. If you’re committed to doing great work and looking for an opportunity where you’ll be challenged, come chat with and meet our teams - get to know us and you’ll quickly see what makes C&B a great place to be!” >> Ready to join a team that appreciates your drive to learn and actively nurtures your potential? Explore our careers page and discover where you belong!

The daily news surrounding Covid-19/Coronavirus continues to put pressure on the entire world. We are seeing growing concern in our communities, businesses, and the world at large. At a time when there are more questions than answers, I wanted to take a minute to ensure you of our commitment and ability to serve our clients. In response to COVID-19, Cottingham & Butler has created a Coronavirus Preparedness Team who is actively monitoring updates to help us navigate through this uncertain time and ensure we continue to serve our clients well. We are focused on doing everything we can to minimize the risk of exposure to our people and maintain our responsibilities to our clients. Please visit our COVID-19 Preparedness & Response Site for more information on the precautionary measures our organization is taking, and for a list of additional resources to assist your business in navigating this uncertain time. Sincerely, David Becker President & CEO, Cottingham & Butler

In today’s business climate of corporate transparency and accountability, an organization’s officers and directors face a myriad of employment-related exposures. Sarbanes-Oxley regulatory mandates and shareholder activism mean directors are more frequently at risk, translating to rising claims and escalating settlement costs. In the wake of unprecedented corporate scandals in recent years, the trend of corporate accountability applies to large corporations. But privately held companies, including nonprofits, are not exempt from litigation arising out of the management decisions of their boards. They, too, are at risk. Regardless of your company’s size, the legal cost to defend a director is substantial, as are the potential personal penalties. Due to the personal liability risk—which is not covered under a personal insurance policy—protecting boardroom talent can be a challenge. To help ensure both your officers’ and company’s well-being, a directors’ and officers’ liability insurance (D&O) policy is part of a comprehensive risk financing strategy. D&O Fills the Coverage Gap Unlike a commercial general liability policy that provides coverage for claims arising from property damage and bodily injury, a D&O policy specifically provides coverage for a "wrongful act,” such as an actual or alleged error, omission, misleading statement, neglect, or breach of duty. For example, a manufacturer told one of its suppliers to increase inventory because they were expecting a large increase in production. As predicted, demand for the manufacturer’s product grew, but the manufacturer increased its inventory with another vendor. The original supplier successfully sued the manufacturer, alleging they suffered damages as a result of having relied on the manufacturer’s promise. A D&O policy provides defense costs and indemnity coverage to the entity listed on the policy declarations, which may include the following: Coverage for individual directors and officers Reimbursement to the organization for a contractual obligation to indemnify directors and officers who serve on the board Protection for the organization or entity itself Indemnification provisions are typically included in the charter or bylaws of a corporation. While an important risk component, small to midsize privately held companies or nonprofit organizations often do not have the financial resources to fund the indemnity provisions, making the bylaws hollow. A D&O policy can provide an extra blanket of security in the event of a covered loss. Coverage A “fraud” exclusion is typically included in a D&O policy, which eliminates coverage for losses due to dishonest or fraudulent acts or omission, or willful violations of any statute, rule, or law. D&O coverage can be tailored to your needs, but be aware that D&O carriers are not consistent with their policy forms. This fact, plus the complexity of D&O claims, requires the carrier to have market commitment and deep expertise, as well as the financial resources to handle potential claims. There are also additional forms of coverage to protect directors and officers, including the following: Entity coverage Payment priority for insured persons Severability of the insured as well as severability of the application Coverage over time, meaning coverage responds to past, present, and future directors and officers Pay on behalf clause Duty to defend clause In addition, some D&O policies can be endorsed to provide employment practices liability (EPL) coverage and/or fiduciary liability. While EPL endorsements under a D&O policy broaden coverage, they often do not provide a duty to defend clause and are subject to a substantial deductible. Many EPL endorsements do not provide for a separate limit of liability in addition to the limit available under the D&O policy. If the D&O limit is reduced or exhausted by payment of an employment practices claim involving the wrongful conduct of an employee, a director’s or officer’s assets may be at risk. Fiduciary liability provides coverage for liabilities arising out of ERISA, where fiduciaries are personally liable for losses to a benefit plan incurred because of alleged errors, omissions, or breaches of their fiduciary duties. Who can bring a D&O lawsuit? According to St. Paul Travelers, statistics show that shareholders and employees are the most likely groups to sue private companies. Other parties may include corporations against themselves, and a variety of third parties, such as competitors, creditors and regulatory bodies. Considerations for Nonprofits According to the Nonprofit Risk Management Center, nonprofit organizations often report some difficulty in affording the cost of D&O insurance. To minimize the annual premium, they recommend choosing only those policy provisions considered most critical. For example, a volunteer-run nonprofit without paid staff may skip employment practices coverage until it hires staff. If affording a lump sum premium is a concern, inquire about the availability of premium financing. To defray the cost of premiums, some nonprofit organizations consider charging board members a portion of the policy cost. We’re Here to Help Whether you’re a nonprofit, privately held, or a public company, your business can likely benefit from a D&O policy. Since there is no such thing as a “standard” policy, a professional agent is invaluable when purchasing D&O coverage. Contact us today to learn more about the appropriate protection for your company against potential directors’ and officers’ liability. 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.

Inland marine insurance was once used strictly in the ocean marine industry to protect against property losses before, during, and after water transfers. As the non-ocean aspect of the cargo journey developed, cargoes were transferred to barge, and the term “inland marine” was created. These policies became known as “floaters” because the property covered was originally floating in the ocean. In the modern insurance industry, inland marine coverage provides protection to fill any gaps in commercial property protections or to reach specific limits of coverage. Industry-Specific Coverage Inland marine insurance can provide specific coverage by industry to protect against a wide array of exposures: Construction Builder’s risk: Protection for damage to buildings or structures under construction, renovation, or repair. Contractor’s equipment: Protects equipment and tools that are normally excluded under typical builder’s risk insurance. Installation: Covers machinery and equipment during transit, installation, and/or testing at project sites. Rigger’s liability: Protection when acting as a rigger for the property of others in their care, control, and custody. Technology and communication Cable television: Protection for property that is essential to cable television systems. Electronic equipment: Insures equipment that uses microprocessors and semiconductors. Medical imaging equipment: Protects mobile medical equipment housed at hospitals, clinics, and other similar premises. Physicians and surgeons: Covers medical, surgical, and dental equipment, supplies, and instruments used in the medical and dental fields. Telecommunication equipment: Protects telephones, computers, fax machines, video conferencing audio and visual equipment, and teleconferencing equipment. Transportation Commercial transport: Coverage for goods and merchandise in transit for truckers, warehouses, shippers, and logistics operators. Legal liability: Coverage for sums the policyholder is obligated to cover as a result of damage from a covered loss to the property of others. Motor truck cargo: Protects owners and operators of trucks against losses to owned property or property of others while in transport. Railroad rolling stock: Protects rolling stock owned or leased by railroad companies or other businesses. Tank storage: Protects tanks, pipelines, and appurtenances and their contents while in the insured’s care, custody, and control. Miscellaneous floaters Armored cars: Protects against losses attributed to armored cars. Furriers block: Covers furs, fur garments or garments trimmed with fur while in the care of furriers, fur storage companies, department stores and other retailers. Installation sales: Covers retail and wholesale merchants, manufacturers, banks and financial companies who sell and use personal property as collateral for loans, conditions of sales contracts, as part of a deferred payment plan or as an installment payment plan. Jewelers block: Provides protection for jewelry, semi-precious stones, precious metals, alloys and other goods used in the insured’s business. Miscellaneous floaters: Serves as “catch-all” coverage for property that is movable. Related property: Protection for buildings, business property, income and extra expenses when writing another marine coverage. Consult Cottingham & Butler today to learn more about inland marine insurance to protect items that seem to fall between the lines of your current coverage. We have the expertise to help you to mitigate your risks and protect your bottom line. 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.

It’s a good news, bad news situation. The bad news: Lawsuits, once a measure of last resort, are now commonplace in settling disputes. The good news? You can protect yourself – and your business and reputation – by investing in professional liability coverage, also known as Errors and Omissions (E&O) insurance. E&O insurance is supplementary liability insurance that enhances any business owner’s policy by safeguarding against catastrophic loss in the event of a lawsuit due to a negligent act, error, or omission by the professional. In addition to claims of error, omission, or negligence, E&O insurance can also protect against slander, libel, and breach of contract. Who Needs E&O Coverage? E&O is appropriate coverage for anyone who gives advice, makes educated recommendations, designs solutions, or represents the needs of others. Service professionals, such as accountants, computer consultants, software developers, planners, architects, real estate agents, contractors, etc., are prime candidates for carrying E&O insurance. Specialized forms of E&O coverage are also available to professionals such as appraisers, real estate agents, insurance agents, home inspectors, and notaries. Policies are designed to cover the large legal defense costs that are incurred trying to prove liability or innocence. They also ultimately cover the final judgment if the business owner does not win the lawsuit. E&O Policy Overview E&O coverage kicks in where your Commercial General Liability policy does not provide coverage, such as for service errors, contract performance disputes, or any other professional liability issues. These policies also include defense costs, which can be quite substantial even if liability is not found. Policies typically do not provide coverage for non-financial losses or intentional or dishonest acts. E&O policies generally have both a claim limit and an annual limit, which is based on the insured’s exposure. The claim limit is the maximum amount that will be paid for any single event, and the annual limit is the maximum that will be paid in any one year. Typical limits range from $250,000/$500,000 to $2 million/$4 million and differ depending on the type of business. To be eligible for this specialized insurance, candidates normally have to have proof of licensure in their “covered class of business.” Count on the Experts There are many different forms of professional liability insurance and multiple factors to consider when purchasing E&O coverage for your business. Because there isn’t a standard policy, an experienced agent who understands your company and can knowledgeably design a policy to meet your needs is invaluable. Contact us today to learn how E&O insurance fits into your total risk management program. 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.

Do you know that business-related crimes such as theft, forgery, or fraud can impact any organization in possession of money, property, or other valuable assets? Are you prepared to handle the consequences that could occur in the event that such a crime affects your business? Commercial crime insurance can protect from losses following a business-related crime. Covered events typically include burglary, forgery, fraud, extortion, employee dishonesty, and the theft, destruction, or damage of money securities, or other property. These policies can provide coverage both at your place of business and while you or your employees are conducting business off-site. Even with proper security measures and internal protocols in place, crime can still affect your business. What's more, standard insurance policies typically exclude losses that result from crimes committed by employees and offer limited protection of crimes committed by third parties. An Example of Crime Insurance in Action You own a software store, selling and fixing various devices such as computers, phones, and entertainment systems. When conducting an inventory check, you discover that ten thousand dollars worth of store merchandise has recently been stolen upon investigation, the police revealed that one of your employees was the culprit. Although commercial property insurance would likely exclude coverage for such an incident, a crime policy could provide compensation for the stolen items. To learn more about crime insurance and secure policy of your own, contact us 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.

Workers’ compensation coverage pays benefits to workers injured on the job, including medical care, part of lost wages and permanent disability. It also provides death benefits to dependents of employees killed from a work-related accident. Workers’ compensation systems are different in every state, as individual statutes and court decisions have shaped the way they handle claims, evaluate impairments, settle disputes, provide benefits and control costs. Background of Workers’ Compensation Insurance During the 19th century, the number of individuals joining the workforce grew exponentially. As a result, the number of workplace accidents grew as well. At that time, the only way that injured workers could obtain compensation for their injuries was to sue the employer. Many legislative proposals emerged early in the 20th century, focusing on compensating injured workers for their medical care and lost wages. By 1949, all states had a system in place to provide compensation for injured employees. Under these systems, the employer was responsible for providing compensation for the cost of medical care and wages lost, and consequently, the employee gave up his or her right to sue the employer for injuries. Currently, Texas is the only state where workers’ compensation is not mandated for all employers. As part of the insurance package, the injured worker’s medical, rehabilitation and lost wages are paid for by the state or insurance carrier. If the injury leaves the employee disabled, the insurance carrier will pay the claim based on the extent of the injuries and based on its permanence. The disability will fall into one the following categories: temporary total, temporary partial, permanent partial or permanent total disability. Workers’ compensation rates and programs are managed by private insurers, state funds or the National Council on Compensation Insurance (NCCI). Cottingham & Butler can provide more information about how your state handles these programs. The Employer’s Responsibilities Employers are required to do the following to comply with workers’ compensation insurance laws: Provide coverage for their employees and are held liable for all injuries suffered by employees while they are on the job (with the exception of employers residing in the state of Texas) Pay premiums and provide the carrier with audit payroll numbers Provide a safe environment Notify the carrier as soon as possible after an injury Investigate injuries Managing Your Workers’ Compensation Costs Your workers’ compensation insurance premium is based on a rating your company has, which is based on payroll, averages for your industry, and claims experienced over a three-year period. Claims have a direct impact on this experience modification factor (mod), which can significantly drive up premiums. This means many times a company will pay for its own claims in increased premium costs. There are many things that companies can do to lower their workers’ compensation costs, such as the following: Inspect your insurance policy to make sure that all job classifications and payrolls are correct. Invest in workplace safety to avoid accidents and improve claim histories to reduce overall costs. If you modify operating procedures even slightly, you can alleviate unnecessary exposure to injuries. Create a modified duty program at your organization to help injured employees return to work sooner. Under these programs, employees are assigned duties that they can physically complete while they recover. The most successful return-to-work programs incorporate speedy, quality medical care and assistance to reduce emotional stress after an accident. There are other actions that your organization can take to reduce workers’ compensation costs, and we have the tools to show you how. Contact Cottingham & Butler today to learn more. 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 way project owners evaluate and manage risks on construction projects and make fiscally responsible decisions to ensure timely project completion are crucial to their success. Since private owners cannot afford to gamble on a contractor whose reliability is uncertain or who could end up bankrupt halfway through the job, a surety bond is a great safety net for the investment. What is Suretyship? Suretyship is a very specialized line of insurance that is created whenever one party guarantees the performance of an obligation by another party. A surety bond is a written agreement that includes three parties: The principal is the party that undertakes the obligation. The surety company guarantees the obligation will be performed. The obligee is the party who receives the benefit of the bond. There are two primary types of surety bonds, contract (or corporate) surety bonds and commercial surety bonds. Contract (or Corporate) Surety Bonds Contract (or corporate) surety bonds provide financial security and construction assurance for building and construction projects by assuring the project owner (obligee) that the contractor (principal) will perform the work and compensate certain subcontractors, laborers, and material suppliers, as outlined via their contract. Contract surety bonds include the following: Bid bonds provide financial assurance that the bid has been submitted in good faith and that the contractor intends to enter into the contract at the price bid and provide the required performance and payment bonds. Performance bonds protect the owner from financial loss should the contractor fail to perform the contract per its terms and conditions. Payment bonds guarantee that the contractor will pay certain subcontractors, laborers, and material suppliers associated with the project. Maintenance bonds guarantee against defective workmanship or materials for a specified period. Subdivision bonds make guarantees to cities, counties, or states that the principal will finance and construct certain improvements such as streets, sidewalks, curbs, gutters, sewers, and drainage systems. Commercial Surety Bonds Commercial surety bonds guarantee performance by the principal of the obligation or undertaking described in the bond. Commercial surety bonds include the following: License and permit bonds are required by state law or local regulations to obtain a license or permit to engage in a particular business (e.g., contractors, motor vehicle dealers, securities dealers, employment agencies, health spas, grain warehouses, liquor, and sales tax). Judicial and probate bonds, also referred to as fiduciary bonds, secure the performance of a fiduciary's duties and compliance with court orders (e.g., administrators, executors, guardians, trustees of a will, liquidators, receivers, and masters). Judicial proceedings court bonds include injunction, appeal, indemnity to sheriff, mechanic's lien, attachment, replevin, and admiralty. Public official bonds guarantee the performance of duty by a public official, (e.g., treasurers, tax collectors, sheriffs, judges, court clerks, and notaries). Federal (non-contract) bonds are required by the federal government (e.g., Medicare and Medicaid providers, customs, immigrants, excise, and alcoholic beverages). Miscellaneous bonds include lost securities, leases, guarantee payment of utility bills, guarantee employer contributions for union fringe benefits, and workers’ compensation for self-insurers. How is Suretyship Similar to Other Forms of Insurance? It’s important to recognize the similarities between suretyship and other forms of insurance: State insurance commissioners regulate both suretyship and other insurance. They both provide a safety net for financial loss. How is Suretyship Different? Key differences exist between suretyship and other insurance: In traditional insurance, the risk is transferred to the insurance company. However, in a suretyship, the risk remains with the principal, and the protection of the bond is designated for the obligee. In traditional insurance, the insurance company assumes that part of the premium for the policy will be paid out in losses. Yet, in true suretyship, the premiums paid are "service fees" charged for the use of the surety company’s financial backing and guarantee. In underwriting traditional insurance products, the goal is to "spread the risk,” while in a suretyship, surety professionals view their underwriting as a form of credit. Therefore, the emphasis is on the pre-qualification and selection process. Government Regulations The current federal law on federal public works is known as the Miller Act, which requires performance and payment bonds for all public work contracts in excess of $100,000 and payment protection, with payment bonds the preferred method, for contracts in excess of $25,000. Almost all 50 states, the District of Columbia, Puerto Rico, and most local jurisdictions have enacted similar legislation requiring surety bonds on public works as well. Protect Yourself With Surety Bonds By obtaining a surety bond, you can transfer the risks associated with completion dates and quality concerns to a surety company. Contact our expert team today to obtain a surety bond and 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.

Excess liability insurance (ELI), more commonly known as umbrella insurance, is one of the most important types of insurance your company can buy. It protects your business from holes or limits in existing policy coverage as well as from financially draining lawsuits. Just as you carry an umbrella to protect you from a potential downpour, ELI protects your company from the types of claims that could close your business. Umbrella Basics Businesses choose ELI essentially to back up the limits contained in their underlying liability policies (commercial general liability, business auto, employer liability, workers’ compensation and professional liability.) For the most part, it is used to cover exceptionally large events or losses with low probabilities of occurrence. Without ELI, these events – as few and far between as they may be – would be financially devastating to many companies. Who Should Consider ELI? All types of companies would benefit largely from ELI. Because it extends coverage so dramatically at a relatively small additional cost, many choose to pay the extra price. The amount of coverage needed will always depend on the total value of your assets. Here’s how it works: Assume a jury ordered your business to pay $3 million in damages for a liability claim, but your general liability policy has a $2 million limit. Your company would normally be required to cover the additional $1 million. However, with a $4 million ELI policy, the $2 million commercial policy would exhaust, and then the umbrella policy would cover the outstanding $1 million. Other Benefits of ELI Coverage Ultimately, ELI acts as a sort of dual policy, providing coverage in two ways: Paying liabilities in excess of existing policy limits Providing coverage in areas not included with existing policies You have already read how ELI acts with basic coverage to cover costs; however, it also provides extra coverage in other areas by using a self-insured retention (SIR), a dollar amount that functions like a deductible. In umbrella coverage, the SIR will vary by situation and by state, but it starts at $10,000. If ELI is being used in areas without any other basic coverage, it will kick in after you pay the set SIR. ELI is also beneficial because an effective policy can save your business money and cover more assets by using fewer individual policies. However, depending on your policy, some coverage may be excluded under ELI. Common exclusions include employment practices liability, professional liability, and product recall coverage. The umbrella market is often erratic. We can find you competitive quotes addressing your specific risk categories. To learn more about including excess liability/umbrella insurance to protect your company, 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.

What changes are coming? In July of this year, the Department of Labor issued a notice of proposed rulemaking with major changes to the overtime exemptions currently in place. As it stands since 2004, employees may be exempt if their salary is at least $23,660 per year while performing executive, administrative, professional, outside sides, or computer duties. Exempt employees are not entitled to overtime pay while nonexempt employees are. Under the proposed rule, the exemption regulations relating to salary and job classifications are both under review. The current estimate is the starting salary point for overtime exemptions will be approximately $48,000 – so employees earning less than that may soon qualify for overtime, depending on their job classification. The Department of Labor estimates 4.6 million workers will be newly qualified for overtime, which is expected to directly affect employers beginning in 2016. How is trucking impacted? An overtime exemption for motor carriers is provided within the Fair Labor Standards Act. The exemption applies to any driver, their helper, loader, or mechanic employed by a motor carrier and whose duties affect the safety and operation of motor vehicles in the transportation on public highways of passengers or property in interstate or foreign commerce. An important note: this exemption does not address intrastate commerce; the assumption would be that drivers operating in intrastate commerce may be subject to overtime pay. In addition, the exemption does not apply to employee’s work affecting the operation of vehicles weighing 10,000lbs or less. One common misconception regarding the overtime exemption relates to who is defined as an employee engaged in “activities affecting safety.” As it stands today, this does not include dispatchers, office personnel, those who unload vehicles and those who load vehicles but are not responsible for the proper loading of it. This leaves employees with these job classifications subject to the new overtime rules if their salary is under the threshold. Action Items for Employers With these changes looking to take place for 2016, employers should carefully review and update their overtime policies as well as review employee job classifications as early as possible to be compliant with the rule. For more information, you can visit the Department of Labor’s Wage and Hour Division website at www.wagehour.dol.gov

Refrigerated coverage, often referred to as “reefer breakdown coverage” is essential coverage for any motor carrier who wishes to transport temperature-sensitive cargo.  Transporting goods across the country is already a risky business, so throwing in the additional risk of transporting perishable commodities can make the job much more challenging.  Whether you’re hauling fresh produce, seafood, dairy products, or any other refrigerated item, there are a variety of things that could potentially open a motor carrier up to unnecessary risk if the proper precautions are not taken. One of the simplest ways to avoid reefer breakdown claims is by making sure all drivers are properly trained to operate refrigeration units.  Making sure each driver checks the temperature gauges periodically throughout transit to ensure that the refrigeration unit is running correctly can help mitigate the risk of commodities spoiling. Drivers should keep a log (electronic or otherwise) of each inspection during the trip. This should include detailed maintenance and re-fueling logs. These logs can be very useful to an insurance company throughout a claim.  Performing an inspection before the trip can also help to point out any issues that could arise during delivery or if maintenance is needed.  Making sure to keep the unit fueled is also a major component that can very easily be overlooked during a time crunch. Motor Carriers along with the drivers should have clear communication with each shipper and/or broker to review and understand their requirements when hauling their goods. Many commodities can tolerate temperature swings of 5 or 10 degrees, but others require a constant temperature to keep from spoiling.  Some shippers might even require a constant temperature to be set for items that can actually tolerate some fluctuation.  Knowing these aspects ahead of time and maintaining detailed logs can keep perfectly acceptable cargo from being deemed spoiled due to the shipper’s requirements not being met. Every policyholder should become familiar with all cargo exclusions that might be listed in their insurance policy.  This is no different for refrigeration breakdown coverage.  Many times, this coverage comes with its own list of exclusions.  Sometimes the insurance carrier will allow you to haul fresh produce but does not allow meat or seafood as these items may spoil more quickly or have a higher risk of theft.  However, not all exclusions are specific to particular commodities. Some cargo forms will also exclude coverage for claims that arise out of operator error or will only cover the actual breakdown of the refrigeration unit.  If a driver sets the refrigeration unit to the wrong temperature and the load is rejected or the driver forgets to refuel during transit, this is an error on the driver’s part and may not be covered by insurance. Other insurance companies might require that a motor carrier keep detailed maintenance logs for reefer breakdown coverage to apply.  So if the reefer unit fails mid-delivery and there is no log to show when it was last inspected or when the last maintenance was performed then the claim may be denied. Policyholders need to communicate with their insurance agents regarding these risks to make sure the motor carrier is covered properly. Hauling refrigerated goods can prove to be very profitable if the right precautions are taken.  Sometimes the increased reward does not come without increased risk.  Ensuring that a motor carrier has the right training and procedures in place can mean the difference between a claim being covered or coverage being denied. Claims involving refrigerated goods tend to be more costly as there is a higher chance an entire load will be rejected.  Having proper driving training, and knowing the expectations of the shipper, as well as the insurance carrier, can save a motor carrier thousands of dollars in the event of a claim. References https://businessinsuranceusa.com/refrigerated-truck-insurance https://www.commercialtruckinsurancehq.com/refrigerated-truck-insurance https://www.colonialtruckinginsurance.com/programs/reefer-truck-insurance/ https://www.truckinginfo.com/article/story/2010/12/trailer-report-running-reefers-right.aspx