Sunday, January 07, 2018

Delaware Business Insurance Update From CNC Insurance Assoc. “Updating Values in Your Insurance Policies” 1-7-18

As a business owner you most likely have insurance policies that cover your buildings, contents, equipment and other property assets. These policies insure up to a value that is stated on the insurance policy. This requires you to keep up with the values to make sure your policy is adequately covering you. If you do not update your values at least annually you could fine yourself under insured after a loss. A simple call to your insurance professional to review and discuss changes or amendments could save you a lot of headaches.  Call today !  Until next time be careful out there and know your risks.

G. Kevin Nemith President/Managing Director CNC Insurance Associates/ Hilb Group

Monday, January 01, 2018

Delaware Business Insurance Update “ Call Your Agent When Your Business Changes” Jan 2 2018

The economy is growing and getting better. This means that opportunities will abound for your business. If you decide to expand your business and do new things, make sure you call your agent. The business insurance policy that was set up by your insurance professional  may need to be updated or changed. Insurance policies may not cover or inadequately cover your new operations. Many business owners forget to contact their agent and this can be problematic. So don’t hesitate , call today. You want to make sure that your business is protected for the growth you will most likely have this year. Happy New Year ! Be careful out there and know your risks.

G. Kevin Nemith. President CNC Insurance Associates/ Hilb Group

Sunday, November 12, 2017

Delaware Business Insurance Update, From CNC Insurance Associates. “ The Importance of Reporting Potential Claims” 11-12-17

In the course of business, you may find yourself thinking that certain situations or incidents may require you to call your insurance broker. The incidents go by and seemingly they resolve themselves and you go about running your bsuiness and never make that call. Fast forward  a couple of years from now and that incident that you thought was nothing has now turned into a claim or legal action against your company. Now you make the call and your insurance agent turns in the claim to the insurance company. The insurance company then denies coverage because you did not report it in a timely manner.  You cry “foul !”, and find yourself out in the cold and in a battle with your insurance carrier.
This situation does happen , although very infrequently. Most insurance company policies have provisions in them that require policy holders to report “claims”.  Since the definition of what costitutes a “claim” varies from one policy to the next, the safest thing to do is call your insurance professional when things happen.  As a business owner you know when events take place that could lead into a possible insurance issue. When you talk about it with your broker, they will most likely advise you to report on a “Reporting Purposes Only” basis. The insurance company will note the record but not set up a claim or reserve. This type of reporting does not hurt your loss ratio. If this incident develops into a claim, you already complied with the reporting provisions of your policy. This is the best way to make sure that you avoid a lack of reporting disagreement with your insurance company. Until next time be careful out there and know your risks.

G. Kevin Nemith CIC, CRM.
 CNC Insurance Associates a member of the Hilb Group

Sunday, November 05, 2017

Delaware Business Insurance Update, From CNC Insurance Associates, “Will State Regulation Put a Road Block in Front of Insurance Innovation”. 11-5-17

The word “disrupters” is being used quite frequently in the Insurance industry today. There are many tech companies trying to figure a way to change and disrupt the way the insurance consumer utilizes insurance. Most are looking to make insurance transactions easy and mobile. It is only a matter of time your cell phone will be the common  starting point for buying, transacting, and claim making. It is already happening.  Technology, coordinating with your local agent, will also be the norm. However as I right this blog, the technology wave is slow to progress. Most of delay is caused by state regulators whose job it is to protect the consumers. Making sure technology does not hurt the insurance buying public is paramount to make it all work for the future. States have done an excellent job in holding the insurance industry accountable to their policy holders. The last thing that regulators will want is technology eroding those protections even it if does mean making the consumer experience with insurance better.  So most states are teaming up with the Insurance company innovators to try to crack the code in melding new technology with consumer protection. Regulators are giving experimental leeway for some of the new disrupter’s technology, while at the same time, keeping them in check. This teamwork will only mean better things for insurance buyers. Ease of doing business with state regulation all in new forms of technology is going to be exciting as these platforms roll out in the very near future. Stay tuned !  Until next time be careful out there and know you risks.

G. Kevin Nemith
Area President CNC Insurance Assoc, Member of the Hilb Group

Sunday, October 29, 2017

Delaware Business Insurance Update “ Contract Indemnifications And Work Comp Claims, What All Business Owners Need To Understand” 10-29-17

Every business will sign contracts with vendors or other companies to do business with them. Many of these contracts are signed with indemnifications. The business who lets the contract will require the business who wants to do business with them, to sign an indemnification. The clause usually says that the business will indemnify the other for claims that come out of the business dealings.  So now lets look at how a work comp claim can cause problems for businesses that indemnify other businesses. Here is the example: Company A signs a contract with Company B for a business project that can be very lucrative for Company A.  During the project a Company A employee gets hurt on the job. The  insurance company for Company A pays the comp claim and the employee gets back to work after some time. Then months later the employee files a lawsuit against Company B since the injury was during the project with Company B. Company B then tenders the lawsuit back to Company A because Company A agreed to indemnify Company B under the signed contract. So now Company A is having to defend a claim from it’s own employee. This is due to the contractual indemnification.  Company A will have to depend on it’s General Liability policy to cover the claim. Now it does not seem fair that Company A is paying for a claim twice, but that is what contractual indemnifications can do. Make sure you read and understand your contracts before signing. Always seek out Insurance and professional advice from your risk and legal counsels. Until next time be careful out there and know your risks.

G. Kevin Nemith. Area President, The Hilb Group of Maryland & CNC Insurance Associates

Sunday, October 22, 2017

Business Insurance Update from CNC Insurance Associates. “ Artificial Intelligence Missing Human Advocacy in Insurance”. 10-22-17

It seems more and more calls are answered by robots. Call your credit card company, bank, even your electric utility and you are met with a voice activated robot that talks and acts like a human being. This is an example of artificial intelligence (AI) servicing our world of commerce. The insurance industry is now adopting this same approach. Call the 800 number and the insurance company robot is there to  process your premium payment, take your claim, and even make changes to your policy. The insurance industry looks at this as a major opportunity for cost savings as AI is replacing the need for humans. This also affects your local insurance agent or broker. If you can easily have your insurance transactions serviced by robots then what will you need your agents for? The answer to this question is advocacy. Your agent is your only hope to advocate against the very large and powerful insurance industry. Your local agent has relationships with company underwriters and upper management that can override the robots and help customers. Insurance is a confusing and complicated industry. As a consumer you have no hope of getting advocacy or having someone fight in your corner if you have to depend solely on the robots with programmed AI. This is becoming more and more evident as policyholders find themselves trying to find people to help deal with their service questions and problems. Don’t give up on human beings. Even more, don’t give up on your local insurance agent or broker. They are the only friend you will have in the tough game of insurance. Until next time be careful out there and know your risks.

G. Kevin Nemith,
 Area President & Managing Director CNC Insurance Associates & The Hilb Group

Sunday, October 08, 2017

Business Insurance Update From CNC Insurance Associates. “ Injured Employees Return To Work The Most Important Road To Recovery” 10-8-17

Studies have made it very clear that injured workers that can return to work quickly, do better in their long term recovery.  In other words the faster they can return to their jobs the lower the total cost of the work comp claim. However this usually requires a light duty transition job that most employers just do not have available. The absence of light duty work, keeps injured workers home and this usually means a more costly claim. In addition in some States, the rules for offering a return to work job are extremely rigid and hard to adhere to. This also keeps employers from offering these programs.
Regardless of the obstacles, every employer should try to get their injured workers back as soon as practical. If this means going through the effort to create a light duty job offer, it will be well worth it.
Keeping work comp claim cost down will keep insurance premiums down. Experience modifiers applied to your work comp rates will also be lower and your injured employee will be better off becasuse they are back to work. So all business owners  work with your insurance professional and legal team to put together a return too work program with a light duty transition job. It will pay for itself in the long term. Until next time be careful out there and know your risks.

G. Kevin Nemith. CNC Insurance Associates
Serving DE. MD, NJ, PA, & VA

Sunday, September 17, 2017

Delaware Business Insurance Update From CNC Insurance Associates " Social Media Increases Infringement Risk For Business Owners". 9-17-17

A recent copyright infringement case in the music industry has given insurance and risk professionals a cause for alarm.  The family of the late Marvin Gaye, won a verdict of 5.4 million and 50% future royalties from Robin Thicke and Pharrell Williams, for the song "Blurred Lines".  What is troubling about this verdict is that the award was for infringement of the "groove", and or "feel".  This is really unprecedented and could open up a slew of litigation around all types of media. Business owners using social media to promote and advertise their businesses could be held to a much higher standard when posting online. Determining that a business used the same "feel" in their advertising as another creator of content could really be a problem. Think of all the posting that is done on social media outlets that are "copy cats" of other posts. How about photographs and videos that are shared from one social media user to another? Is everyone using social media considered violating the copyright laws?  Common sense would think not, but this "Blurred Lines" case could open up a Pandora's box of issues.  The good news for business owners is your general liability policy may cover copyright infringement under Section B Personal Injury and Advertising. It is going to be interesting to see how courts rule in the use of online media. With millions and milllions of businesses participating in marketing themselves on outlets like Twitter, Facebook, and LinkedIn,  lawsuits for copyright infringement may eventually re-write the rules of social media use and sharing. Until next time be careful out there and know your risks.

G. Kevin Nemith CNC Insurance Associates & The Business Insurance Center

Sunday, September 10, 2017

Delaware Business Insurance Update from CNC Insurance Associates Inc. " More Thoughts On Self Driving Autos, Whose Liable ?" 9-10-17

Technology is changing the way the insurance industry looks at liability with auto insurance. More and more people are buying cars which practically can drive themselves. In actuality, many feel that drivers will not be needed, only riders, as cars will do the driving with no one behind the wheel. So now the question is, following an accident who is liable?  Answering this question will dictate the future of auto insurance. If drivers are no longer liable for accidents, then the insurance industry will have to charge much less for insurance. Are the car manufacturers, or technology companies that install the self driving features liable?  If this is the case then they should be charged the premium not the drivers. Does this mean that auto insurance for drivers will be dramatically reduced? I would think so. There is no doubt , auto insurance is about to be dramatically changed. Insurance companies will have to adjust their model from a consumer focus to a manufacturer or business focus. This will be a major loss of revenue for auto insurers and a great day for consumers. There are still a lot of questions surrounding this issue and only time will tell how it will shake out. Either way I see more money in the pockets of drivers as their auto insurance will be a lot less. Until next time be careful out there and know your risks.

G. Kevin Nemith President CNC Insurance Associates Inc.
serving DE, MD, PA, NJ, & VA

Monday, September 04, 2017

Delaware Business Insurance Update From CNC Insurance Associates Inc. " Does Your Landlord's Lease Make Your Business Repsonsible For His Building?" 9-4-17

Many business owners will sign lease of premise contracts and not really know what is in the fine print. Many leases today push all the risk to the tenant. This could be problematic if the insurance policies that insure a business, who is a tenant, do not match up with the requirements in the lease. This is especially true with damage to property. Many leases today are making the tenant responsible for damage to the leased building. No longer is the responsibility relegated to their leased space only. In today's rental agreements the tenant may have to pay for damage to the total building, responsible or not. These lease provisions are usually in the indemnification clauses of the lease. The clause may state that the tenant has to indemnify the landlord for damage to the building out of activities of the tenant. The tenant may not even be responsible and still have to indemnify. The insurance policy for the tenant may not be set up to cover the total cost of damage to a landlord's building. Here is an example:
A business owner signs a lease for a 1200 square foot space in a large commercial building that houses 25 other tenants. In the lease the insurance requirements has the tenant cover their own property and provide Fire Legal Liability for the cost of their rented space, let's say in this example $100,000  in coverage. However in the indemnification provision of the lease, it states the tenant has to indemnify the landlord for damage to the total building. One night a fire broke out in the tenant's space and spread to the entire building. The landlord is now looking to the tenant to repair and rebuild his building. The tenant only has the $100,000 of coverage that was required by the insurance portion of the lease. Unfair?, Not Right?  This is an actual example of how a lease can cause major problems for business owners. Before you sign a new lease get your legal and insurance professionals to review it with you. Getting the right insurance in place to match the requirements of the lease will avoid dealing with  uncovered damages that a lease would make you responsible for. Until next time be careful out there and know your risks.

G. Kevin Nemith,   President CNC Insurance Associates Inc.
Serving DE, MD, NJ, PA & VA