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

Tuesday, February 06, 2018

Business Insurance Update from CNC Insurance Associates “Report General Liability Claims Quickly To Your Insurance Carrier” 2-6-18

It seems logical that most business owners would report their General Liability claims to their insurance companies quickly. Unfortunately this sometimes does not happen. In some circumstances the business owner does not even know they have a claim.  General Liability claims do not always ‘reveal” themselves. With this in mind it is imperative to report your claim as soon as you think you may have one. The reason for this is in the insurance policy. Many policies have a reporting requirement built in. If you do not report the claim within the policy period there would be no trigger of coverage. Other policies have clauses that just state “as soon as practical” or “as soon as possible”. These phrases are so ambiguous and could cause you trouble as the insurance company is in control of what they mean.  Other language in the policies state conditions that the insured ( business owner) must do in order to have coverage. Allowing the insurance company adequate time to investigate the claim is one of those conditions. If too much time goes by from the claim to when it is reported, it could mean a denial from the insurance company.
So make sure you report your liability claims as soon as you think one has occurred. This is the safest bet to allowing the coverage to be triggered in your behalf. Until next time be careful out there and know your risks.

G. Kevin Nemith, CNC Insurance Associates/ Hilb Group

Sunday, January 28, 2018

Business Insurance Update by CNC Insurance Associates, “New Personal Auto Policy Has Some Interesting Endorsements and Exclusions” 1-28-18

Usually I focus this blog on business insurance topics. Today however I thought it would be interesting to bring to your attention a couple of interesting endorsements and exclusions available on the new personal auto policy that Insurance Service Office (ISO)  is set to release in late 2018. Even as business owners, this will most likely affect you as you buy personal auto insurance.

Covering injuries to pets in the car is an available endorsement that can be added to the new personal auto policy. This is way overdue as pets have become very mobile as they ride along more than ever, with their owners.
For the millennials that still live at home and need personal property coverage, the new personal auto policy will allow it to be added. However it is only on an actual cash value basis and there is no liability coverage.
Exlcuding flying cars is also in the new personal auto policy. That’s right, flying cars !  ISO has looked into the future and feels that if a policy holder owns a flying car then it has to be insured some other way. Most likley the same as aviation is insured. Only time will tell on this one.

The personal auto policy is adapting to the new world of insurance risks. I would imagine over time it will continue to evolve. Until next time be careful out there and know your risks.

G. Kevin Nemith
CNC Insurance Assoc/Hilb Group

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