Insurance & Risk SolutionsIT’S NOT JUST BUSINESS; it’s Personal

CONTACT THE STARR GROUP5005 Loomis Road • Greenfield, WI 53220-0001

Phone: (414) 421-3800 • Fax: (414) 421-6145 LIVE CHAT at starrgroup.com

CHAT NOW!

One of the floor care products m

anufacturers that continually invests in research and innovation, Essential Industries of M

erton, Wis.,

also tips its hat to the values of 1898, w

hen it was founded. H

ard work,

innovation, superior products and exceptional custom

er service are core principles propelling Essential Indus-tries to its reputation as a leading floor care product supplier.

Essential Industries’ newest

product, Sport Kote PC was a finalist

in the ISSA/IN

TERCLEAN

2015 Innovation Aw

ard program. ISSA

/IN

TERCLEAN

, the world’s largest

cleaning trade show, w

as held in Las Vegas in O

ctober, and Sport Kote PC w

as one of 39 products competing for

the Innovation Award. Sport Kote PC

provides outstanding high-gloss finish

for wood floors, and resists scuffs and

scratches like no other product. The next generation of Sport Kote

— the m

arket-leading, water-based

wood floor finish —

Sport Kote PC is m

ade of polycarbonate, the same

polymer the U

.S. military trusts for the

bullet-proof canopy on F-22 Raptor fighter jets.

Because Essential Industries conducts daily research to find the best floor care products, you can count on our products —

they are tested to be the best. W

e take the gam

ble out of floor care with proven,

innovative products and a stellar industry reputation that spans m

ore than 100 years.

5005 Loomis RoadGreenfield, WI 53220

October - December 2015

The demise of Auto Insurance is a long way

from a reality as are roads dominated by self-driving vehicles. Be that as it may, I have read several articles that suggest the historical application of vehicle insurance will certainly and significantly change.

It is hard to imagine self-driving vehicles dominating our roads since there are still plenty of us who, well, enjoy driving and desire control. So, it would appear that comsumers are a long way from freely giving up that control, in addition the technology is certainly in

its genesis. Like others, I have been surprised though how fast the technology has culminated and it appears there is a race to be “the first”.

As technology advances, there will be a shift that takes place wherein the negligence of a driver will become the Product Liability of the self-driving vehicle company. This makes sense particularly when the vehicle is in the “Self-Driving mode”. Collectively, it should cause vehicle insurance premiums to go down.

Vehicles today are already safer than at any time in

history and that in turn has had an impact on insurance costs whether that means a credit one receives for safety devices or simply slowing the pace of rate increases.

The pace of technology advances and it won’t be long before our head jerks at witnessing what once was considered a “ghost driver” cease and the phenomenon becomes a common sight — oh, the good ol’ days!

Sincerely,Tim Starr CIC, CRM, CRIS, CWCAPresident & CEO

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Back to the Future

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Our vision is to leadin the creation and delivery of Risk Reducing Services and Insurance Programsfor our clients, improving their Total Risk Wellness.

The Destination of Insurance and Self-Driving Vehicles

In 1959, GM created a concept car complete with a radar-equipped hood, but the “Cadillac Cyclone” was never produced. (Reuters)

In 2013, Ford’s chief technology director, Vijay Sankaran, was quoted as speculating that truly self-driving cars “were at least 10 years away.”

In 2013, Donald Hillebrand, director of transportation research at the U.S. Argonne National Laboratory, cited the notorious litigiousness of American’s as the main reason why big carmakers were content to let upstarts such as Tesla and Google take the first step in developing self-driving vehicles. In the event of an autonomous car crash, it will not be immediately clear who should be sued: driver or manufacturer.Inside This Issue:

The Future of Self-Driving Vehicles Page 1 W

elcome New

Starr Customers Page 2

Credit Card Chips and Liability Page 2 W

interize Your Outdoor Work Crew

Page 3 IT Contract and Litigation Costs Page 3 Custom

er Spotlight Page 4

CHAT NOW!

Page 2 BUSINESS NEWS...You Can Use! The Starr Group The Starr Group BUSINESS NEWS...You Can Use! Page 3

Each Quarter, The Starr Group welcomes the new businesses that have entrusted their insurance and risk management needs to us. Join us in welcoming them to our “family.” Please mention seeing their names listed in The Starr Group News You Can Use newslet-ter when you patronize them!

American Industrial SalesAubby, Inc.Caspian Technology ConceptsDesign Tech Remodeling, LLCEssential Industries, Inc.Global Wet, LLCHamilton Education FoundationHeartland LiquidationHome Path FinancialLee’s Hardware, Inc.Lilac Ventures, LLC (dba Artisan 179)Miro Tool & Mfg., Inc.Precision Machine Tool Corp.Rockafellow Remodeling, LLC

New Starr Customers!

Winter in Wisconsin is here. Inclement weather such as fog, ice and snow can negatively

impact the performance of machinery and vehicles, as well as safety on the roads. Workers could be outdoors for up to twelve hours per day. All this can lead to a significant reduction in productivity and affect your overall profitability. It’s a good idea to make sure your outdoor crew is ‘Winterized’.

Contractors who are exposed to extreme weather conditions could face health risks including hypothermia, frost-bite, trench foot, and in extreme cases even death. Additionally, your contractor safety could be seriously hampered by physical risks such as falls, slips, and trips due to bad weather conditions.

According to OSHA, employers have a responsibility to provide a work place free from hazards, including those caused by harsh winter weather. Related hazards, like slippery roads and surfaces, windy conditions, and damaged power lines may be taken for granted. Protect

your contractors by teaching safe work-ing practices and offering advice specifi-cally related to winter conditions such as: u Preventing Cold Stress and injuries

by choosing appropriate clothing u Recognizing and monitoring the

symptoms of Cold Stress in self and co-workers

u Monitoring weather conditions and reporting back to managementThe most valuable point is to recom-

mend protective clothing necessary dur-ing bad weather. While there is no OSHA requirement for employers to provide workers with ordinary clothing such as those needed during the harsh winter months, it is your decision to provide gloves, jackets, raincoats, sunglasses, headwear and scarves if you deem them necessary. Here is a list of seasonal ap-parel: 1. Thermal insulated coveralls. The cover-

all design largely eliminates core body heat loss while affording good range of motion. They’re a smart investment

if you work outdoor in winter.2. Helmet liners. Fleece-lined fabric is a

comfortable insulator and effective at preserving neck and head heat. Keep spares on hand and wash the liners regularly. Liners are available in a range of size and coverage; the longer the better for protective coverage. Ski masks are not designed for use with a hard hat.

3. Glove selection. Fabric and texture need to be suited to the job, but try to find gloves that allow you to use a liner. Insulated mittens have been de-veloped with various configurations for finger dexterity.

4. Eye protection. Wearing glasses can minimize heat loss, protect from cold, dry air, wind and dirt particles as well as flu virus.

5. Scarves. Very effective at protecting the neck and chest from heat loss, scarves allow easy adjustment or removal for cooling as needed.

6. Footwear. Choose double-layer thermal socks and insulated boots. If possible opt for a composite toe, which is almost as strong as “Steel toe”.

7. Moisturize. To cover as much exposed skin as possible, use skin cream, mois-turizer, barrier creams, etc. to stave off hypothermia and avoid frostbite. For more ideas on minimizing busi-

ness risks all year round, call The Starr Group at 1-414-421-3800 today.

Baby its COLD outside!

BRRR!

The cost of litigation to information and network technology companies has risen dramatically in

recent years as a result of product and service disputes. Because of the increase in the average size and length of contracts, more customers are willing to sue long established business partners for performance failure problems. The result: an increase in business partner litigation.

With companies relying more on information technology solutions, software solutions become core business solutions. Therefore, more is at stake if the solution fails or doesn’t perform as promised. Addi-tionally, companies conducting international business face a host of new exposures due to foreign laws and

regulations.Information and network technology companies

need timely solutions that evolve with their industry. The Starr Group errors & omissions (E&O) insurance offers such solutions and can help protect your firm from the devastation of a lawsuit.

The following scenarios give reason why IT busi-nesses need proper insurance protection:

A company sues for lost revenue and expenses to recover billing files for its customers that were inadvertently deleted by the software vendor who was updating the system.

Indemnity Paid: $750,000Defense Cost Paid: $150,000

A software company was sued by a customer after he used the company’s software. The software itself was found to have functioned perfectly. The error was on the part of the user who later underbid a work project. The customer eventually dropped the case, but only after considerable legal expenses were incurred by the software company.

Indemnity Paid: $0Defense Cost Paid: $175,000

Million dollar verdicts and costly legal fees can easily destroy a firm’s bottom line...if not properly protected. Talk to The Starr Group about information technol-ogy errors & omissions insurance. Get the advice and protection you need today.

Larger IT Contracts Contribute to Increased Litigation Costs

Ask the Account Manager... Q Does a Cyber Policy

protect merchants from fraudulent charges if they did not change over their card readers to the new EMV system which reads the chips now in many credit and debit cards?

A The answer is really no. In October 2015, banks in the

United States began instituting EMV (Europay Mastercard Visa) rules that are used around the world. With this change, the liability for debit and credit card breach, forgery, damages shifted from the bank to the entity involved in the transaction using lesser technology.

EMV requires more expensive card readers that are capable of reading a computer chip embed-ded in the card which drives the transaction approval. The chip card will be “dipped” into the reader device instead of swip-ing a card with a magnetic strip. The new dip technology makes the possibility of counterfeiting card information almost nil since it transfers only information involving a transaction approval number. That number is good only for that one transaction and therefore cannot be copied and used again and again, unlike the

information that is stolen off of magnetic strips.

Cyber Liability with Payment Card Industry (PCI) exposure — at least in the short term (12-24 months) will in-crease dramatically for the retailer. This is because the mag-netic strip readers are already in place at retailers all over the country. Replacing them with new computer chip readers will cost $600-$1,500 more per machine. For financial reasons, many retailers may delay chang-ing to the chip reader and that puts the liability for fraudulent use and breach on them because the new rules say the transac-tor with the lessor technology is responsible (retailer with old magnetic strip reader...not the bank with the new chip embed-ded card.)

If Cyber does not cover the retailer for the EMV liability, they will need to: 1) bear the burden; 2) buy an Excess and Surplus (E&S) policy; or 3) upgrade their card reader technology immedi-ately to machines that read chips

as well as magnetic strips. It is estimated that credit cards

will be switched over by the end of 2016, and nearly 50% of all bank debit cards will be switched

over by June of 2016. For obvious reasons, banks are rushing to transfer liability

to the retailers. Moving ahead with the newer technology, many banks have budgeted for the added expense of the card itself and the reissuing of them to card holders. By June, 2017, all banks in the U.S. are estimated to make chip technology transition.

There are were no hard and fast guidelines for CNP (card not present) transactions—online purchases—, other than liability will shift to the lessor technology transactor.

Do you have questions about Commercial Insurance coverage or Group Benefits? Contact The Starr Group today:

1-414-421-3800

Questions about your policy? LIVE CHAT * M-F * 9am-4pmGet immediate answers from certified Account Managers

and licensed Agents at The Starr Group.

www.starrgroup.com

“...the new rules say the transactor with

the lessor technology is responsible.”