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

Saturday, March 17, 2018

Delaware Business Insurance Update From CNC Insurance Assoc. "The Universal Connection of Everything To The Internet Will Change Your Business Insurance" 3-17-18

Many experts are predicting that over the next decade there will be over 50 billion devices connected to the internet. Business owners will need to adapt their insurance and risk management portfolios to protect themselves from the "internet of things".
Here are some thoughts:

Who owns the data?  With all the data going from devices to vendors , does the business owner still own that data and is the business liable if that data does harm?

The internet is global, is your insurance protection worldwide?  Most will find out that it is not. Does this mean business owners will need global protection?

Social engineering fraudsters dupe employees into being unwitting participants in cyber crimes. Does the business insurance policy cover these issues? Is the business owner liable?

Denial of Service attacks on businesses is increasing, does the loss of income protection in an insurance policy cover if the business is shut down by a hacker?

As you can see , business insurance will have to change to cover these risks. it is already doing just that. Cyber Insurance policies are covering first and third party claims like the ones above. These policies will need to be a regular part of the insurance portfolio. As of today however they are not. Many business owners still lack this coverage. Contact your insurance professional and find out how you can add cyber coverage. Until next time be careful out there and know your risks.

G. Kevin Nemith    CNC Insurance Assoc. / The Hilb Group

Monday, March 05, 2018

Delaware Business Insurance Update from CNC Insurance Associates. " Employee Theft From Your Business Could Involve Some Tricks" 3-4-18

As a business owner you always run the risk of employee theft. Thank goodness most of it is small scale and rarely makes an impact on your bottom line. On ocassion however, a business owner can be victimized by a smart enterprising employee or employees. Let me give you some examples:

FAKE VENDOR SCAM- the trusted office bookkeeper set up a bogus vendor account for office supplies (address and all). The business owner authorizsed the paying of invoices from this bogus account for over 5 years. The owner did not realize the invoices were to a fake vendor account until it was too late. When the scam was finally figured out the total loss was close to $100,000 !!

THE ONE PIECE AT A TIME SCAM- the owner of a construction company would lose a few pieces of material every week at different jobsites. His crew were not doing a very good job keeping track of the inventory. Over the course of a few years this continued. Finally one of the employees ratted out the others and disclosed to the owner that the whole crew was in on it. They were slowly stealing materials to build a hunting lodge for the "boys". The total loss to the contractor was a whopping $80,000 !

How do you protect yourself ?  Here are some very simple risk management steps you can take to minimize employee theft
1) Make every employee take a vacation. If they are running an ongoing scam, they usually cannot go away from it for very long.
2) Use your accountant more in review and analysis of your financials. It will be worth the extra costs
3) Set up a culture of no tolerance when it comes to employee theft and communicate it frequently.
4) Buy Employee Dishonesty Insurance, this will give you the protection in case it happens to you.

It is tough to make a dollar in business today. With risk management and insurance, you can keep more of it by keeping your employees hands out of the "cookie jar". Until next time be careful out there and know yor risks.

G. Kevin Nemith  CNC Insurance Associates / Hilb Group
1-87-262-3276 toll free

Sunday, February 25, 2018

Delaware Business Insurance Update From CNC Insurance Associates, "Injured Workers Who Don't Return to Work in 60 Days May Never Return" 2-26-18

Ok here is the scoop. If you have an injured employee who is out on a work comp claim, do your best to get them back to work within 60 days. There was a study done a decade ago by the Menninger Foundation that showed the validity of getting workers back before 60 days. I have seen through my experience that this holds true today.
So how can employers help get this accomplished? Return to Work Programs, are the best way to get injured employees back on the job.

Return to Work Programs - What's in it for YOU the Business Owner?
* Reduction of work comp costs as a result of reduced claim payouts
*Elimination of costs for recruitment and hiring of replacement workers
* Shortened work interruptions due to inexperienced new employees
*Positive goodwill between owners and employees
* Lower overtime costs to maintain work loads

To establish your own Return To Work Program you need to partner up.
Call your insurance professional and insurance company to provide guidance and resources on these programs. Don't think it is a monumental task, call us. We have helped many of our clients get started and keep these programs going. Until next time be careful out there and know your risks.

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

Tuesday, February 20, 2018

Business Insurance Update from CNC Insurance Associates, " The Biology of Business Life Insurance" 2-20-18

The word "Biology" is the study of living organisms  physiology, origins, and behavior. I am taking some blogosphere liberty by using it in the same sentence with business life insurance. Life insurance when used correctly, can "come alive" and help a business to thrive. No, I have not lost it, so let me explain.

Life insurance can be used in a business to protect a key person and the revenue they bring to the business. If the key person dies, so could the income they make for the business. A  life insurance policy owned by the business can keep the revenue "alive" even if the key person is no longer living.

Life insurance can help a business perpetuate to new owners. One of the major obstacles in a business perpetuation is funding buy sell agreements or contractual agreements to purchase. Properly constructed, life insurance can help facilitate these arrangements and keep the business "alive" for future owners.

Life insurance can help retain valuable employees. If a business owner wants to keep the competitors away from stealing their top people, use of a life policy might do the trick. It can be used to reward top talent. It has to be structured right but it can certainly make the valuable employee feel "alive" with enthusiasm to stay and not look elsewhere.

These are just a few of the many uses of  life insurance. As you can see the  biology of the "life" in business life insurance is great for a company like yours,  and a great tool for success. Until next time be careful out there and know your risks.

G. Kevin Nemith  CEO,  CNC Insurance Assoc. / Hilb Group