Tuesday, December 25, 2018

Delaware Business Insurance Update from CNC Insurance Associates, " Personalization of Auto Insurance Could Reduce Rates !" 12-25-18

Insurance rates may go down in the future because of "auto personalization". What is this you ask?
Imagine being charged insurance rates based on your personalized use of your auto. If you drive very little next week, then your rates go down. If you drive the speed limit most of the time, your rates go down. If you avoid hard braking and tailgating, your rates go down. Get the picture?  The use of telematics has given the insurance industry a chance to personalize insurance costs directly to the users' driving habits. Gone may be the days of surcharging a male driver under the age of 24 just because they are young. If the telematics show that he can drive as safe and responsible as a 40 year old, then his insurance premiums should be comparable. If you go on vacation and park the car for two weeks, telematics will inform the insurance company that there has been no risk, and your insurance premiums will reflect that.

Now as good as this sounds it will work the other way too !   Day to day bad drivers, even with no accidents are going to be charged more because the computers will tell on you. Imagine getting a higher bill next week because you ran 3 red lights !   This will be very interesting.

One way or another, computers in cars are going to be like "big brother" watching your every move, or every driving action.  Good or bad, you will pay premiums respectively.

Until next time be careful out there and know your risks.

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

Sunday, December 09, 2018

Delaware Business Insurance Update from CNC Insurance Associates, "3D Printers Make Everyone a Manufacturer !", 12-9-18

A fascinating risk and insurance problem is developing with the increase usage of 3D printers. These printers are used quite frequently in manufacturing firms. However as these marvels are becoming easier to afford, non manufacturing businesses are buying them. This opens up a slew of risk and insurance problems for business owners. For example if the boss buys a 3D printer for the office so they can make decorative desk items, this business is now manufacturing.  Do the products being made already have a copyright on them?  Does this open up the business to increase liability? Are these decorative items being taken home by employees? Do small children have access to them?
As you can see, a simple "printing" of a fun desk item creates all the risk and insurance issues manufacturers deal with all the time.
Now I am not trying to take all the fun out of using these printers. You can really make some cool stuff. However the reality is that 3D printers could very well increase your liabilities. So before you buy or use them make sure you understand, your are manufacturing!  Until next time be careful out there and know your risks.

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

Sunday, December 02, 2018

Delaware Business Insurance Update from CNC Insurance Associates. " Mental Health Issues in the Workplace Needs Risk Management" 12-2-18

Employees with depression and severe anxiety are very common in the work place today. Studies have shown that close to 50% of all who suffer mental health issues at work are not being treated effectively. Mental health disorders do not discriminate, as it affects all employees even in the C Suite. So what is the employers' responsibility for dealing with this issue? It definitely requires risk management.  Employers can begin by making sure the health insurance that is offered to employees has mental health coverage. Many plans do not carry this coverage even though the ACA requires it. More importantly employers should create a culture of conversation which can allow employees to openly discuss their mental issues. Employee Assistant Programs set up by employers can offer education and services to help employees improve their wellness and sleep. Also employees abuse of prescription medications , need employers attention to make sure doctors and counselors are part of the assistant programs.
 Dealing with mental health in the workplace is just now getting the attention it deserves. Having a good risk plan and continuing to improve it, will be a priority for employers, now and into the future.

Until next time be careful out there and know your risks.

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

Saturday, November 24, 2018

Delaware Business Insurance Update from CNC Insurance Assoc. " Work Comp Rates to Fall" 11-24-18

Business owners in Delaware can expect the costs of work comp insurance to be less next year. The Delaware Compensation Rating Bureau is proposing a 7% rate reduction in the residual market and a 10% in the voluntary market. This is a big win for the Delaware business economy. Companies large and small often cite the high costs of work comp insurance in Delaware as a major weight that stifles growth. If the rate reduction goes through,  then expect to see more business growth which will also boost the economy in Delaware. The filing has to be approved by the Delaware Insurance Department in early December. Until next time be careful out there and know your risks.

G. Kevin Nemith President CNC Insurance Associates/ Hilb Group

Sunday, November 18, 2018

Delaware Business Insurance Update from CNC Insurance Associates "Don't Sign That Contract Until You Know The Risk Transfers" November 18 2018

I continue to see business owners sign contracts without knowing how much risk they may be taking on. Contracts are a part of business and you have no choice but to sign them however there are things you should know to reduce these risks.

Understand the contracts you sign in your business !!
  1. Contracts may transfer risk to you that you were not expecting
  2. Make sure you know who is requesting to be an insured on your policy, from the contract
  3. Watch indemnity clauses and hold harmless clauses as they may expose your business to more risk than what is insurable
  4. Many of the terms and conditions of contracts last many years after the contract is complete. Understand your long term risks.
  5. Broad indemnity contracts can impose your business to protecting the interests of parties not part of the contract, Read the fine print
 Until next time be careful out there and know your risks.

G. Kevin Nemith   President CNC Insurance Associates/Hilb Group

Sunday, October 14, 2018

Delaware Business Insurance Update “ Flooding Still Surprising Business and Homeowners”. 10-14-18

Storms continue to surprise business owners and homeowners with flooding. The headlines show images of neighborhoods and streets inundated with water at depths no one would have ever expected. The reality in these situations is that most of the damage is not covered by insurance. Most businesses and homeowners do not buy flood insurance. There are a lot of reasons for this, but in my 30 years of experience, most people say they never thought it could ever happen in their area.
What has to be realized is continued development and growth are casuing areas to flood that would not have flooded before. Flooding is no longer just near rivers, lakes and oceans.

Buying the coverage is limited to very few options. The market is dominated by the Federal Government under the National Flood Insurance Program (NFIP).  Most private insurance companies do not offer the coverage.  In addition NFIP premiums can be significant.
I have said this before in previous blogs, but the market needs to adapt. Business owners and homeowners need to have more choices and need to have premiums that are affordable. Until that time flood insurance will contiue to be an  “unsought and not bought” insurance coverage.
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, September 16, 2018

Delaware Business Insurance Update from CNC Insurance Assoc. “Cannabis Business Still Hard to Insure” 9-16-18

As more and more states begin to legalize the business of  marijuana, the insurance industry is trying to figure out how to cover these entities. Currently there are few options as insurance companies just do not want to take on the risks associated with the industry. This is due to not having enough data to price risks and also the legal issues that have yet to be tested between states and the federal government. When it comes to the business, crop insurance is the biggest risk. The value of growing crops in the field can be millions of dollars. You can almost understand why insurance companies are hesitant. Cargo and transit of crops is also a big exposure. A lot of value in a vehicle going from place to place is just too hard to figure how much premium is the right premium to charge.  As time goes on and the business models define themselves, the insurance industry will respond as they always do.
The cannabis industry will be one of the largest business sectors in the country in a few years. However it will take a robust insurance industry to help insure and create the market. Only time will tell.
Until next time be careful out there and know your risks.

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

Monday, August 27, 2018

Delaware Business Insurance Update from CNC Insurance Associates " Numbers Don't Lie, Why You Need Cyber Insurance" 8-27-18

I saw an article the other day and it outlined some stats regarding data breach and hacks into businesses. After reviewing those numbers I had to share it in my blog as a reminder why every business needs cyber insurance. So here we go. Oh by the way, these stats are referenced from an article in Rough Notes Magazine July 2018. ( Author was Ellie Feldman.)


If these stats don't motivate you to buy coverage nothing will. Call your insurance professional today and get some cyber coverage. Until next time be careful out there and know your risks.

G. Kevin Nemith  President CNC Insurance Assoc. Hilb Group

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