Risk & Business

Since September 11th 2001, many things have changed or have been created as a result of the events that transpired on that day. One thing that was created was the Terrorism, Risk Insurance Act of 2002. This act provides insurance protection for business in the event of a terrorist act. Recently, there has been some discussion of ending the program after 2013. If this occurs, insurance companies will need to introduce language in general liability policies that describes in detail, what acts will trigger this coverage. Well, until next time be careful out there and know your risks. K G. Kevin Nemith President CNC Insurance Associates Inc. Proudly Serving Delaware, Maryland, PA, NJ & VA www.cncinsurance.com www.bizinsurancetv.org

Directors & Officers Coverage Directors and Officer policies are not only for directors and officers of businesses, they're also in place to protect volunteers as well. For example, board members of a little league organization could be liable for thier financial and organizational decision making. If a claim is filed on the grounds of negligence or mismanagement of funding, protection is provide by the D&O policy. Furthermore, D&O policies are specific in language and are not written to cover claims pertaining to injuries or property damage. In most cases, those claims would fall under a general liability policy. Check with an insurance professional today to assess your risks and see if a Directors and Officers policy is something you need. Until next time, be careful out there and know your risks. G' Kevin Nemith President, CNC Insurance Proudly serving Delaware, Maryland, Virginia, Pennsylvania, and New Jersey. www.cmcinsurance.com www.bizinsurancetv.com

Delaware Construction Jobs Fall in 2012 According to a report from the Associated General Contractors of America, Delaware   lost 1,100 construction jobs in 2012. Furthermore, these numbers indicate a decline of over 5% according to numbers posted for 2011. While other states have seen far worse, Delaware's numbers for construction related jobs rank low in comparison with this decline. While multiple factors may be driving this down swing, the lack of state/federally funded infrastructure projects, new tax laws, rise in workers compensation costs and even out of state job opportunities, have to be considered as adversely impacting those jobless numbers as well. As 2013 begins, we can only watch and wait to see if there will be any improvement. Unfortunately, the possibility of those numbers rebounding dramatically for 2013 are highly unlikely. Well, until next time, be careful out there and know your risks. G. Kevin Nemith President, CNC Insurance Proudly serving Delaware,

Tech is Changing The Insurance Process: Without a doubt, tech tools are changing the insurance landscape. These tools can now determine the cost of a policy by identifying risks faster and with more accuracy. Some of the ways they are utilized are algorithms that determine businesse size, product(s) it produces, geographical location and claims history. All with a click of a mouse. Does this mean the end of human involvement in underwriting? Who knows, no one can be sure what the future may hold. In my opinion, there will always be a level of human involvement to insure "one size does not fit all" for policy underwriting. Every business is unique and a policy must be written with that in mind. Make no mistake, as tech tools continue to evolve, they will in all likelihood become a staple in the insurance industry. When used in conjunction with human oversight, it should only make for a successful partnership. Well, until next time, be careful out there and know your risks.

During the last two years, the workers compensation rates for Delaware have seen an increase of 26%. In an effort to reduce the rate increase, Gov. Jack Markell and the General Assembly have appointed Lt. Gov. Matt Denn to head a new Workers Compensation Task Force. In 2006, Lt. Gov. Denn who was at that time the Insurance Commisoner for Delaware, worked with the General Assembly to address the same issue. Through the promise of compensation reforms, they cut rates by 45%. Over the past five years these reforms have not worked and now rates have jumped back up. One thing is for certain, the work comp rate increase has the attention of Delaware business owners. For business owners that have been able to weather the economic storm of the past few years, most are still not at a point to absorb such increases. How quickly can this issue be addressed remains to be seen. For now, it requires business owners to remain in a state of "wait and see". Well, until next time, be careful

Try as you might, there is only so much you can do when it comes to risk management. Natural Disasters are a perfect example. There's only so much preparing we can do with regards to these events, with the understanding that we cannot control mother nature. For the things we can prepare for, here are few places to start. Employees are going to be the first priority. Have emergency planning and drills that cover safe locations, exits strategies, even emergency power if necessary. Next, make sure you business's infrastructure is protected. Things like equipment or software, not to mention your insurance policies. By completing periodical insurance policy evaluations, policies can be reviewed and changed if your companies risks have changed. Finally, you will need to get your business back on it's feet. Maintain a list of individuals or contractors that can make necessary repairs. In the event of a supply chain disruption, have an alternative supplier. These are just a few of