Saturday, August 12, 2017

Delaware Business Insurance Update from CNC Insurance Associates Inc. " Business Owners Don't Forget to Insure Yourself" 8-12-17

You have built your business from the ground up.  You worked hard, and many hours without a day off have been the norm to get your business where it is today. You insure your buildings, equipment, autos, and employees,  however do you insure you ? The majority of business owners do not insure themselves. What happens to the business when something happens to you? Most business owners do not even think about this scenario. In reality most business will fail when the owner or "driver" dies or becomes disabled. It is only fair to the employees, vendors, and customers to make sure your business can go on without you. This can also apply to your best employees or managers that help your business run.
So what is the answer to this risk?  Life and disability insurance.  Key Man life and disability  insurance is a necessity for a business owner. You are the "Key Man" (or Woman) that make the business work,  so insure "you"!!  The premiums are deducted as an expense in most occasions and the policies are owned by the business. There are many options to put these policies in place and coordinating it with your financial planner is also a good idea. So talk with your insurance professional and discuss the options for life and disability insurance for you and the key men,  or women, in 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, PA, NJ, VA
www.cncinsurance.com
www.bizinsurancetv.org

Sunday, August 06, 2017

Delaware Business Insurance Update From CNC Insurance Associates Inc. "When Your #1 Supplier Can't Supply, Then What ? 8-6-17

Most business owners cover their loss of business income. This coverage is included in most business owners policies and is easily added to Propery & Liability package policies. But what happens when the business loses income because their main supplier cannot supply the products or services the business needs? This type of coverage is called Contingent Business Income. In today's "just in time" inventory supply lines, businesses do not stock as much as they use to. A business can order online at night and by the next day have thier supplies from their favorite vendor. However if a main supplier has a claim that prevents this "just in time" delivery, the business owner could lose money. This is especially true with specialty products or supplies that come from only one or two vendors. It does not take much for a business to lose income when their shipments of inventory are delayed. Customers do not want to wait for a new order to come in from other vendors that cause major delays. They will just look elsewhere. Don't forget to look into Contignent Business Income, as an added protection to your insurance portfolio. Talk with your insurance professional and do a risk assessment of your vulnerabilities. Be more aware if you have specialty products coming from only one or two suppliers. Until next time be careful out there and know your risks.

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


Sunday, July 30, 2017

Delaware Business Insurance Update from CNC Insurance Associates Inc. " Claim Reserves Could Be Increasing Your Rates ! ". 7-30-17

So, you have to submit a claim on your business insurance. You call your insurance agent and or company and go through the process of getting your claim resolved. Depending on the type and the size, this process can be quick or it can be drawn out. Sometimes it is a pleasant experience and sometimes it is not. I do feel that the industry tries to make the claim experience with their policyholders a good one, but the insurance contract is complicated and it can cause tension between you and the insurance company. Most of the time claims are paid and you are able to move on to get back to business as usual. This is where we start the conversation about reserves. What is a reserve?  A reserve is a sum of money that the insurance company adds to the total claim paid out just in case more has to be paid later. These added amounts can increase rates as they are counted when determining the loss ratio of a business. Many times these amounts will be held against policyholders years after their claim was settled. If no one is tracking or advocating for the reduction or elimination of these reserves, the business owner will pay more than they should. It is important that you talk with your insurance professional about any possible reserves you may have on past claims. Find out if they are causing  your rates to go up and see if you can get them reduced or eliminated. Also, understand that a reserve benefits the insurance company and not you the policyholder. Be diligent and make the inquiry to your insurance company to see if they have continued to apply reserves against closed and settled claims. Until next time be careful out there and know your risks.

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

Sunday, July 16, 2017

Delaware Business Insurance Update From CNC Insurance Associates Inc. "The Other Part of Your Liability Coverage, Libel and Slander Coverage" 7-16-17

Many business owners do not know that their general liability policy will cover for libel, slander, copyright infringement, and defamation. Here are some examples. In the course of business you may have a claim from a competitor that accuses you of libel or slander.  This usually happens in competing for sales or bringing on new customers. Another  company in a similiar industry as you, may feel that your business ad slogan  or marketing campaign, is a violation of their copyright or their "trade dress" and this could initiate a lawsuit.  Now add social media and the ease of posting on the internet, and this risk has gone to a whole new level.
The general liability policy covers these claims under Personal Injury and Advertising. This coverage is in Part B of the general liability insurance policy. Limits of insurance for this coverage usually match the bodily injury and property damage coverage of Part A, which is the liability coverage most everyone is familiar with.  As technology allow businesses to reach more and more people, the risk of these advertising claims will make the Part B of the general liability coverage a very important one in the course of protecting 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, PA, NJ, & VA
www.cncinsurance.com
www.bizinsurancetv.org

Sunday, July 09, 2017

Delaware Business Insurance Update from CNC Insurance Associates Inc. "Will Tech Replace The Need For Agents?" 7-8-17

I have been in the insurance business as an agent for over 23 years. As long as I can remember, so called experts have been predicting the demise of the insurance agent. Now in 2017 this cry of extinction is louder than ever. They even have a word for it, "disintermediation", or in layman terms, "replacing the middle man". The thought is that technology will make buying insurance so easy and uncomplicated that insurance companies can go directly to the customer and by-pass the need to use agents as their selling arm. The advancement of this technology will allow customers to buy insurance anytime , anywhere, and for any risk, in real time. Now I think this actually may be happening. Websites that I have seen from some very sophisticated insurance companies, make buying insurance look like buying anything else online. However, when it comes to insurance,    the real issue is after the sale. The insurance contract is just that a "contract", and a complicated one at that. The thought of a consumer dealing online with claim problems, or policy changes, or updates to their risk needs, is very unsettling. I know this because we solve these problems for our clients every day and the insurance companies don't make it easy. This is where the agent and broker shine. They bring value and advocacy. Clients will always need an agent to fight the battles of insurance for them on a day to day basis. The client may have to pay the agent directly, but the demise of the insurance agent is greatly over exaggerated, once again. 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, NJ, PA, & VA
www.cncinsurance.com
www.bizinsurancetv.org

Tuesday, July 04, 2017

Delaware Business Insurance Update from CNC Insurance Associates Inc. "Delaware Legislature Impose New Rating Restrictions on Auto Insurers" 7-4-17

The Delaware legislature just passed a new bill that would prohibit insurance companies form using certain aspects of credit scoring when pricing auto insurance. For many years the insurance industry has used credit based scoring to determine rates. Many jurisdictions have questioned the validity of this practice and few have even called it discriminatory. Now, in Delaware , insurance companies will no longer be able to apply certain credit scoring parameters to their insurance auto rates. Credit based scoring on income, gender, education, address, race, ethic group, marital status, etc. is now prohibited.
In addition the insurance companies cannot cancel or non renew due to lack of credit information or credit worthiness. 
Consumer groups are applauding this measure, however, this may be a future problem for the auto insurance marketplace in Delaware.  Insurance companies are reeling with increasing claims in auto and the profits in this line of insurance is dropping nationwide. With a very small market opportunity in Delaware, the concern may be that taking away rating "tools" like credit scoring, may force insurance companies in Delaware to go elsewhere. This would lower the choice Delaware consumers would have in the auto insurance market.  Only time will tell, so 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 Inc. & The Business Insurance Center
Serving DE, MD, PA, NJ, & VA
www.cncinsurance.com
www.bizinsurancetv.org

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