Sunday, June 25, 2017

Delaware Business Insurance Update from CNC Insurance Associates Inc. " Social Engineering Fraud , Are You Covered?" 6-25-17

What in the world is Social Engineering Fraud?  If you own a business you need to be aware of this potential risk. So let me explain. Social Engineering Fraud is a type of fraud where fraudsters target their victims with fake domain names and make money request, usually through email and with the application of some sort of social pressure. Business employees take the bait and the next thing you know, money is being stolen from the business. This type of fraud is becoming more and more frequent. Business owners are more at risk because they may have unaware employees who think they are working with a vendor or customer and click the link in the email, which is usually the method of delivery for carrying out the fraud. So what is a business to do? First take a risk management approach and educate your employees on how these schemes work and what to watch out for. If it doesn't seem right, don't click !  The next thing to do is to buy some insurance. The best way to accomplish this is to add an endorsement for Social Engineering to your crime policy. Don't look to your Cyber policy for coverage as these policies only cover unauthorized breaches. In these Social Engineering crimes the employees let them in voluntarily, so the crime policy will be the right insurance policy to cover the risk. Call your insurance professional for more information and to get the right coverage in place. Until next time be careful out there and know your risks.


G. Kevin Nemith , President CNC Insurance Associates & The Business Insurance Center
Serving DE, MD, NJ. PA & VA
www.cncinsurance.com
www.bizinsurancetv.org

Sunday, June 18, 2017

Delaware Business Insurance Update From CNC Insurance Associates Inc. "Hey Business Owners Do You Know Your Total Cost of Risk?" 6-18-17

Most business owners have not heard of the concept of "Total Cost of Risk". Knowing this metric, however, can be vital to the success of any business. So let me explain this a little and maybe, you  will be able to use it in your business.  Every business has risk. These risks are unique and some are more common.  A business owner can buy insurance policies to cover most of these risks. The insurance industry is full of products and policies that protect businesses. The cost of the insurance you buy is the first cost to be added as part of the Total Cost of Risk.  The next cost would be the claims you have to pay out of pocket because, there was no insurance, or you had to pay a deductible, or you did not turn it in for a claim. These are called self funded losses and they are added to the Total Cost of Risk. Nowadays , every business has some sort of loss control or safety programs to reduce risks in the business. The cost to have these programs in place, and the administration to keep them up to date and monitor them,  is also part of the Total Cost of Risk. Finally if your business has been hit with fines or penalties from Federal agencies like OSHA, or if you have had breach of contract penalties in your course of business, this is also added to the total.  Taking all these cost and adding them up,  you get your Total Cost of Risk.  I have added a link below to see our video to learn more on this. Take a look, click the link. Until next time be careful out there and know your risk.
 https://youtu.be/XAhvbLcsKY8


G. Kevin Nemith, President of CNC Insurance Associates Inc. & The Business Insurance Center
Serving DE, MD, VA, NJ, & PA
www.cncinsurance.com
www.bizinsurancetv.org

Tuesday, June 06, 2017

Delaware Business Insurance Update From CNC Insurance Associates " Flood Insurance Rethink on the Way? 6-6-17

From time to time I have discussed in this blog the issues with the flood insurance program run through the NFIP.  Those issues are at the forefront as Congress gets ready to reauthorize the program in the new budget. There are committees meeting as we speak trying to determine how much of the program can go into the private insurance market. The reason for this is to offset the losses the program has each and every year. Also there is talk about updating and improving the risk management profile of the program. In other words, many properties that are more exposed than others will need to comply with some risk management directives in order to participate in the flood program. Looking at the rates and the flood maps, which have been recently updated, is also on the table. Charging the appropriate rate for the exposure is paramount in fixing the continual losing of money and subsidizing of the costs.
As the reauthorization approaches, getting it right is paramount for the long term viability of the NFIP. Let's hope that all the experts and leaders in the industry can put together a plan that can keep this vital program affordable, and on solid ground as our economy needs it to be. Until next time be careful out there and know your risks.


G. Kevin Nemith, President CNC Insurance Associates & The Business Insurance Center
Serving DE, MD, PA, VA & NJ
www.cncinsurance.com
www.bizinsurancetv.org

Monday, May 15, 2017

Delaware Business Insurance Update From CNC Insurance Associates Inc. "Understanding Umbrella Policies" 5-15-17

Every business owner has heard from their insurance professional that they should buy an umbrella policy. For those who have one , you are better protected. For all the owners reading this blog that do not have one, lets take a few minutes to try to convince you to buy this important policy.
Your business is exposed every day to risks that could occur in your operations, work force, autos, and your products. Your general liability policy and your other liability limits in your auto and work comp policies, are your first line of defense. However what happens when the limits in these policies run out? This is where an umbrella policy kicks in. It provides the back up limits you need to cover the unexpected claims that could exhaust your first line of defense in your underlying policy limits.
In addition this policy is 1/4 of the costs of your other policies. You can also add layers with higher limits and each layer costs less the higher you go. Many of these policies have deductibles that are low compared to the protection they provide. Finally, the umbrella policy can help you get more opportunities to bid larger contracts or get larger jobs because the greater limits of liability that are usually required to do work in the larger space. Overall, for the value you cannot beat an umbrella policy, not to mention the added protection.  Until next time be careful out there and know your risks.


G. Kevin Nemith Pres. CNC Insurance Associates Inc. & The Business Insurance Center
Serving DE MD VA NJ & PA
www.cncinsurance.com
www.bizinsurancetv.org

Sunday, May 07, 2017

Delaware Business Insurance Update From CNC Insurance Associates Inc. "Certificates of Insurance Are Not Policies" 5-7-17

Every business owner at one time or another find themselves having to request a certificate of insurance from their agent. This could be to show coverage for adding a new vehicle, equipment, property, or complying with contract terms, etc...
However what most do not know is that a certificate of insurance is not part of the policy. The certificate is just a summary document of what coverage could apply in the actual policies. The certificate itself has bold language on the top of the form stating that the document is issued " as a matter of information only" and "does not amend, extend, or alter" the coverage in the policies.
So why are certificates requested and issued so frequently when they are not part of the actual insurance policies? The main reason is that most people do not understand  nor have the time to review insurance policies to determine if there risks and interests are covered. The certificate of insurance was the creation of the industry. It was to prevent the passing around of insurance policies to avoid people having to read and decipher them for the numerous transactions that require insurance coverage.  Certificates can  cause problems for business owners. Many are issued with the recipient thinking that their interest are covered as they expect .After  a claim however, the actual policy may have terms, conditions, or exclusions that affect the outcome of the claim and how it is paid.
For now the certificate of insurance is the document the industry allows to be used to show insurance coverage. Be aware that it is not a part of the policy and does not actually prove coverage. As always read your policies and talk with your insurance professional to understand the coverage you have and do not have,  for your business. Until next time be careful out there and know your risks.


G. Kevin Nemith President CNC Insurance Associates & The Business Insurance Center
Serving, DE, MD, NJ, PA, & VA
www.cncinsurance.com
www.bizinsurancetv.org

Sunday, April 23, 2017

Delaware Business Insurance Update from CNC Insurance Associates "Your General Liability Policy Won't Cover Damage To Your Work or Product" 4-23-17

Many business owners get a shock when they find out their general liability policy will not cover damage to their work or product. Unfortunately, many owners find this out after a claim. There are some circumstances that give rise to coverage but in most cases there is not. So let's break out how a general liability policy is put together and how you can expect it to respond to a claim.
The policy provides coverage when your business is liable for  property damage and or bodily injury of others. In the course of your business  if you cause damage to another's property or injury to others, then you can expect the general liability policy to respond. However if the property damage is to your own work or product, or the injury is to you or your employees, the policy does not respond.
This distinction is what business owners need to understand. When you buy a general liability policy, you are buying protection that your business activities may pose on others, not yourself.  Here is an easy way to think about this, if your business has to fix work or replace bad work, or you have to recall your product from the marketplace, do not expect your general liability policy to cover your loss. However, if your bad work or product caused injury or damage to others, then your general liability policy should respond.  It is a good idea to discuss this with your insurance and risk professionals. Understanding how your general liability policy responds to claims, opens up the conversation of how to protect your business for the things it does not respond to. Until next time be careful out there and know your risks.


G. Kevin Nemith, President of CNC Insurance Associates & The Business Insurance Center
Serving DE, MD, PA, VA, & NJ
www.cncinsurance.com
www.bizinsurancetv.org

Sunday, April 16, 2017

The Delaware Business Insurance Update from CNC Insurance Associates " OSHA Electronic Record Keeping Requirement for Business" 4-16-17

In an effort to improve tracking of workplace injuries, OSHA will be requiring business owners to submit injury records online. Prior to this year, most business owners would post at their OSHA 300 logs at their place of business. Effective this year in 2017, those logs will have to be electronically submitted to OSHA.  According to OSHA, this requirement is to "nudge" employers to focus on safety, by making injury information publicly available.  The rule went into effect on Jan 2017, however as of this date the portal is still not up and functioning to meet the July 1 deadline to send in your reports. Not all businesses have to report this year, so check the OSHA website to determine if your business is required. This is going to be a big change for business owners. Having their injury records posted for competitors and the public to see,  could be problematic. Many injuries that happen on jobsites are not necessarily an indication of lack of safety. Businesses with very low frequency of claims, could be interpreted by the public as being unsafe, if they show one severe injury. Risk assessments on safety and safe workplaces are not always black and white. Business owners could be classified as unsafe by a public that has no training to make a proper determination. Keep an eye on this one folks. Until next time be careful out there and know your risks.


G. Kevin Nemith, President,  CNC Insurance Associates & The Business Insurance Center
Serving DE, MD, NJ, VA, & PA
www.cncinsurance,com
www.bizinsurancetv.org

Sunday, April 02, 2017

Delaware Business Insurance Update From CNC Insurance Assoc. " Covered Water Damage or Not Covered Flood Damage? 4-2-17

If your business suffers a water damage claim, do you know if your property policy will cover it?  Well it depends on whether the water damage is considered a flood, which is usually not covered. Check out our video blog to learn more .

https://youtu.be/ee4h8V1dC-U


G. Kevin Nemith , President CNC Insurance Associates & The Business Insurance Center
www.cncinsurance.com
www.bizinsurancetv.org 

Sunday, March 26, 2017

Delaware Business Insurance Update from CNC Insurance Associates " The Basics of Contractual Risk Transfer Read Before You Sign" 3-26-17

Every business owner sign numerous contracts during the course of business. One of the major provisions in most contracts is transfer of risk and or responsibility. What is common is the person or entity that lets the contract is trying to pass risk and liability on to the signer. So before you put your signature on another contract read it and look for  key words that will clue you in on what your agreeing to. Here are just a few.

"Any and all": when you see these words it usually is not good for a business owner. Someone in a contract is trying to make sure there are no issues you the signer won't be responsible for.
"By any cause whatsoever" : this is easily understood that what ever liability or risk that was being referenced in the contract , you the signer, are on the hook no matter what the cause of liability or risk is.
"Hold Harmless" :  this is a fancy way of saying you the signer are going to have to protect the entity that is having you sign the contract.
"Indemnify, or Indemnification" : these words show up all the time in contracts and they mean that you are going to have to financially make whole,  the contract entity you are going into a contract with.

These are just a few examples of words that you need to look out for. It is advisable to have your attorney and risk management professional help you decipher contracts. Having  to alter and or change your insurance policies and risk management practices to comply with an already signed contract , can be difficult , and also expensive. It is better to have discussions with your legal and risk team before signing.
Until next time be careful out there and know your risks.

G Kevin Nemith, President CNC Insurance & The Business Insurance Center
Serving DE, MD, PA, NJ, and VA
www.cncinsurance.com
www.bizinsurancetv.org

Sunday, March 12, 2017

Delaware Business Insurance Update from CNC Insurance Associates " The Meat & Potatoes of Cyber Coverage and Why Every Small Business Needs It" 3-12-17

It seems that everyday in the news another large company or financial institution is being hacked. Do to the large scale of these cyber breaches many small and middle sized businesses feel that their company would not be the target of professional hackers. This is simply not correct. Many small businesses get cyber attacked every day but never make the headlines. That is why a Cyber insurance policy is so important. I thought I would outline the "meat and potatoes" of this important coverage and then make a pitch on why you should buy a policy for your business.
 The basics of cyber insurance coverage is to protect the business (First Party) and the business customers, (Third Party). Protecting the business from unauthorized access, virus transmissions, theft of data, loss of business income,  and cyber extortion are just some of the first party protections a cyber insurance policy can offer. The policy can also cover customers who were financially harmed by a hack to your business.  Rebuilding customer credit, replacing stolen monies, cost of notifications to creditors, and repairing or replacing damaged computer programs or hardware, are all third party protections that can be offered.
Now, the pitch on why you should purchase the coverage. The premiums have been coming down significantly from just a few years ago. It is now more affordable than ever. Also more insurance companies are offering the protection and many will add the coverage to your already existing policies. Finally, there are a growing population of cyber criminals out there, more than you can even imagine. The time is now to call your insurance professional and add Cyber Insurance. Until next time be careful out there and know your risks.


G. Kevin Nemith,  President  CNC Insurance Associates & The Business Insurance Center
Serving DE,MD,PA, NJ & VA
www.cncinsurance.com
www.bizinsurancetv.org