Sunday, July 15, 2018

Delaware Business Insurance Update from CNC Insurance Associates “Social Media Catching Insurance Fraudsters”. 7-15-18

Social media is having a big impact on the prevention of insurance fraud. Here is one example. A worker at a large lumber company claimed he hurt his back while loading lumber on a flat bed truck. The insurance company accepted his work comp claim and began paying for his time away from work and his medical bills. However the claim adjuster was looking at the social media posts of the injured worker and saw that he was participating in weekend martial arts tournaments. The insurance company immediately denied further coverage and opened up an insurance fraud investigation.
This is just one story of how social media is playing a role in insurance claims. As people post the story of their lives online, insurance company adjusters can use this information when adjusting claims.  However this opens up a lot of questions regarding privacy. Some states are looking into possible laws to prevent insurance companies from using social media for claim adjustments but until then it is fair game.  With the insurance industry spending close to 5 billion a year on fraudulent work comp claims, using social media to gain information when they suspect fraud is not going away any time soon.
Until next time be careful out there and know your risks.

G. Kevin Nemith CEO CNC Insurance Associates/Hilb Group

Sunday, July 08, 2018

Delaware Business Insurance Update, from CNC Insurance Associates, “Delaware New Cyber Law Will Impact Your Business ! 7-8-18

The state of Delaware passed a new cyber security law that will impact all business owners in the state. This new law will be go into affect this August, 2018. Businesses that house “personal” data       ( basically every business) are required to encrypt, protect and notify if there is a breach. Also the law requires the business provide credit monitoring and breach mitigation services for up to a year. If a breach occurs and more than 500 people are impacted , then the state attorney general needs to be notified.
So what is a business to do?  Buy a cyber security insurance policy. These policies will pay for the breach notifications and mitigation services. They will also pay for the credit monitoring services that are required by the law.
This is here to stay.  Yes it means more costs upon a business, but buying an insurance policy is a small price to pay.
Call you insurance professional today to learn how your business can purchase a cyber liability policy. Until next time be careful out there and know your risks.

G. Kevin Nemith  CEO CNC Insurance Associates /Hilb Group
1-877-262-3276 toll free

Saturday, June 30, 2018

Delaware Business Insurance Update "Insurance Companies Want Your Genetic Test Results" 6-30-18

The direct- to- consumer genetic testing market is expected to expand rapidly over the next decade.  More and more people are using genetic services to test their propensity for diseases and cancer, all in an effort to live healthier and longer lives.
In comes the insurance industry, who wants to use the results of these genetic tests to set rates and improve profitability. Life, long term care, disability, work comp, and health insurers all want in on the results. Now you may say,  "wait a minute , this is private info", right?. However did you know, that every state in the US allows Life insurance companies to use genetic testing results for underwriting, so the genie is out of the bottle already.
Over the next few years, every insurance company will be requesting and using genetic testing for underwriting. Now this opens up some ethical business issues that will have to be dealt with. I am sure the legislatures will being getting more involved.  Keep an eye on this one folks. Until next time be careful out there and know your risks.

G. Kevin Nemith- CEO CNC Insurance Associates /Hilb Group
1-877-262-3276 toll free

Sunday, June 24, 2018

Delaware Business Insurance Update from CNC Insurance Associates, Truck Driver Shortaqe in the USA and Why It Matters, 6-24-18

There is a truck driver shortage in the US. The booming economy is requiring more delivery and a greater demand for moving frieght. According to the American Trucking Association, we are 50,000 jobs short. In other words we need 50,000 new drivers to cover the demand. Business owners are now faced with keeping thier current drivers and competing against other businesses for the drivers who are still out there looking for jobs.  Some of the reasons for the shortage is a lot of younger drivers are not qualified and have very little experience driving trucks. Also many drivers do not want to spend their week on the road, staying over night and away from their families.  New hour of service rules keep these drivers away.
The jobs are paying better. The average pay for a commercial driver is over $53,000 a year.  However this is still not enough money to attract people to want to work driving a truck. So why does this matter?  Well the lack of drivers could put a damper on the growing economy. Also business owners will have to budget to increase driver pay as they do not want to lose the good ones they have already.
This is an interesting time in American commerce as a driver shortage has not been seen before.
Only time will tell how this will play out.  Until next time be careful out there and know your risks.

G. Kevin Nemith - CEO  CNC Insurance Associates / The Hilb Group
1-877-262-3276 toll free

Sunday, May 20, 2018

Delaware Business Insurance Update from CNC Insurance Associates, "Can The Technology Behind BitCoin be the Answer to Stopping Fraudulent Claims?" 5-20-18

McKinsey and Company recently reported that 5-10% of all insurance claims are fraudulent. This may not seem like a lot but when you add in the costs then you realize it is a big deal. Those costs are estimated at $40 Billion a year !!  Now that gets your attention. ( This from the US and FBI as reported in Rough Notes magazine, May 2018). So the question is can technology stop the fraud?  Blockchain may just be the ticket to put a stop to the fraudsters.
Blockchain is the technology that powers bitcoin. Its use as a tool is spreading into various other applications. The insurance industry is no exception. Because of its recorded and public ledger, insurance companies see it as a way to reduce the frequency and severity of bogus claims. The transparency of blockchain will give claim adjusters an easier way to validate true claims and recognize the fake ones.
The technology behind blockchain is for another blog post. But you can surely bet that insurance companies will be sinking their teeth into making it part of their claims processing. Until next time be careful out there and know your risks.

G. Kevin Nemith- President CNC Insurance Associates- Member of the Hilb Group.
1-877-262-3276 toll free.

Sunday, May 06, 2018

Delaware Business Insurance Update "Slim Pickins When It Comes To Insuring Intangible Risks" 5-6-18

In the "old days" most businesses had their value wrapped up in buildings, property, vehicles, employees, etc... in other words,  tangible risks. In today's modern, technologically advanced economy,  many businesses have their value wrapped up in intangible risks. What are some of these risks? Reputational damage, loss if intellectual property, political risk, and failure to innovate and change, are just some of the intangible risks that pose a threat to success in business.
There is an insurance problem also with these risks, as few options are available when it comes to coverage. In 2017 AON did a survey of Global Risk Management and found only 24% are deemed insurable, with the remaining partially insurable (25%) or uninsurable (51%).
To make matters worse these type of risks are hard to identify and monetize. You cannot apply a risk management application until these two items are known. Unfortunately, few business owners will take the time and effort to find out. Insurance brokers and providers are just now counseling their clients on the risk of intangibles and hoping this will build momentum to address them. The insurance industry has been known to be slow to innovate, but the pressing need to insure against these risks will push the industry to respond. Let's keep an eye on this and see what it looks like in a year. Until next time be careful out there and know your risks.

G. Kevin Nemith   CEO CNC Insurance Associates/ Hilb Group
1-877-262-3276 toll free.

Sunday, April 15, 2018

Delaware Business Insurance Update from CNC Insurance Assoc. “Telemedicine Gaining Favor for Work Comp Claims” 4-15-18

All states in the US have laws on the books allowing telemedicine. Technology has allowed patients to see their doctors “remotely” and it allows for cost and time savings. However adopting telemedicine for work comp injuries has been slow in most states. More and more state work comp statutes are looking to add language to their laws to allow telemedicine in adjusting comp claims. The reality is that many doctors and medical providers have been using telemedicine for work comp for some time without specific language in the state statutes.  The real issue in most of these states is figuring out the fee schedule for telemedicine. There has not been any standards for work comp to follow. Doctors certainly see telemedicine as “just like being there” with the patient and do not feel that is is less quality care. Insurance companies like telemedicine because it points to lower costs of work comp claims. Business owners like telemedicine for the same reason.
Lets hope that state lawmakers adapting language for its use in work comp, won’t mess up the benefits.
Until next time be careful out there and know your risks.

G. Kevin Nemith.  CNC Insurance Associates/ The Hilb Group
1-877-262-3276 toll free.

Sunday, April 08, 2018

Delaware Business Insurance Update from CNC Insurance Assoc. “ Bad Doggie , Bite Claims Increasing” 4-8-18

According to the Insurance Information Institute there were 18,522 dog bite claims in 2017. This is an increase from the 2016 year. Also the average cost per claim is climbing. Higher medical costs and jury awards are driving this increase. The canine risk potential is a top underwriting priority for the insurance industry. Many companies are refusing to cover certain breeds, and that list keeps expanding.
So what are homeowners to do with mans best friend. Good risk management practices are needed to reduce the potential of dog bites. Keeping control of your dog at all times is the ticket to reducing bite potential. It will also make your homeowners insurance company very happy. Until next time be careful out there and know your risks.

G. Kevin Nemith. CNC Insurance Associates/ The Hilb Group
1-877-262-3276 toll free

Sunday, April 01, 2018

Delaware Business Insurance Update from CNC Insurance Associates, The Chinese Space Station is Crashing to Earth, Are You Covered? 4-1-18

No this is not an April’s fools joke. The Chinese Space Station Tiangong -1 is expected to crash to earth tonight or early tomorrow. The whole USA is at risk. However experts simply do not know where it is going to come down. The odds makers say there is a trillion to 1 chance your business will be hit. So the question is, is it covered?  Most property insurance contracts will cover this. If you have special form perils coverage , there is no direct written exclusion. If there is no exlcusion then the insurance company would have to cover it.  The claim report would be interesting and I would guarantee your business would be all over the news. So you can go to sleep tonight with the odds in your favor that the space station will not hit your business and if it does your insurance company will cover you. Until next time be careful out there and know your risks.

G. Kevin Nemith- CNC Insurance Assoc. / The Hilb Group
1-877-262-3276 toll free

Sunday, March 25, 2018

Delaware Business Insurance Update from CNC Insurance Associates, "The Umbrella Policy, Why You Should Have One" 3-25-18

As a business owner your insurance portfolio is not complete without an umbrella . This gem of a policy is the best and most cost effective way to increase your protection. First the umbrella will give you extra limits above your liability, auto and work comp policies. Most of the time the cost is one third of the cost of regular liability limits. You can add layers to increase your protection based on the exposures you face. For example, you may be required to have high limits of liability coverage in order to win contracts. The umbrella policy is the ticket to get you to those required limits. Are you exposed to multiple claims in one year? If so the situation is a lot more "comfortable" with an umbrella in the wings.  In some circumstances the policy may even cover items that are not covered in your underlying policies.
So add the extra protection,  at a cost that is usually less than your general liability, auto and work comp. You cannot go wrong with an umbrella policy in your portfolio. Until next time be careful out there and know your risks.

G. Kevin Nemith, CEO,  CNC Insurance Associates / Hilb Group
1-877-262-3276 toll free