Williamson Insurance Blog
Business Insurance Blog Posts
TUESDAY, AUGUST 16, 2016
Cyber coverage: A new business necessity
Does your business need cyber coverage?
The simple answer is yes. If you have a computer—or even just do business with someone who has a computer—you, your business and your information are at risk.
And the consequences can be severe. Sixty percent of small businesses close within six months of a data breach. 1
For small and medium-sized businesses, cyber coverage might seem unnecessary. But data breaches aren’t just for big retailers. While those large-scale attacks generate headlines, most cyberattacks target businesses with less than 250 employees.2
And if you think your business liability insurance has got you covered, think again. Standard business liability insurance typically doesn’t cover cyber liability, and with new threats emerging rapidly in the digital world, cyber liability will likely remain separate from business liability. 3
Now that you know the facts, here’s how cyber coverage can help your business:
A data breach is a security failure where sensitive, protected or confidential data is copied, transmitted, viewed, stolen or used by someone who is not authorized to do so.
It can be as high-tech as a hacker cracking a complex encrypted system or as simple as an employee losing a smartphone. And it happens more often than you can imagine. More than 1 billion personal information records were stolen in 2014 alone.4
Losing your customers’ data can quickly become expensive. In 2015, the average cost paid for each lost or stolen record containing confidential information was $154.4 And there can be severe penalties for losing credit card data, along with the costs of forensic investigations, credit card reissuance and fraud. But maybe the biggest cost is the loss of your customers’ trust if you aren’t covered by insurance or prepared to remedy the situation.
Whether it’s your company handling someone else’s data or a vendor that handles your sensitive information, you must make sure you’re protected.
Even if you’ve entrusted someone else or another company to keep your data safe, cyber coverage can cover you if that information is ever lost or stolen.
Ransomware and extortion
Hackers who target small businesses will sometimes install malware on your system or devices, then demand payment to remove it. With cyber coverage, your business can be protected against this kind of threat.
Cyber coverage is rapidly evolving and determining your risk and needs is essential. The best way to find what fits your business is to speak with an independent agent. Your agent will review your business exposure, different coverage options and make the best policy recommendation for you.
1 - U.S. House Small Business Subcommittee on Health and Technology 2 - Aabacosmallbusiness.com
3 - Quickbooks.intuit.com
4 - Securityintelligence.com
With data theft continuously on the rise, don’t put your business at risk. Call us today and let us work with you on a plan to secure your and your client’s data.
TUESDAY, AUGUST 2, 2016
Know about protecting your business
You have worked hard to establish your business. Hard work and dedication have served to make you as successful as you can be and you need to be informed to protect everything that you have built. Here are the important parts to know about your business insurance coverage.
Unfortunately for every business owner, the chances of getting sued have dramatically increased in the last decade. General Liability insurance can prevent a legal suit from turning into a disaster by providing financial protection in case your business is ever sued or held legally responsible for some injury or damage.
• General Liability pays losses arising from real or alleged bodily injury, property damage, or personal injury on your business premises or arising from your operations.
• Bodily Injury, including the cost of care, the loss of services, and the restitution for any death that results from injury
• Property Damage coverage for the physical damage to property of others or the loss of use of that property
• Products-Completed Operations provides liability protection (damages and legal expenses up to your policy's limit) if an injury ever resulted from something your company made or service your company provided
• Products Liability is a more specialized product liability insurance that protects your company against lawsuits from product-related injury or accidents
• Contractual Liability extends to any liability you may assume by entering into a variety of contracts
• Other coverage includes: Reasonable Use of Force; Borrowed Equipment; Liquor Liability; Non-Owned Vehicles (such as aircraft and watercraft); Fire, Lightning or Explosion Damage; Water Damage Liability Protection; Legal Defense Costs; Medical Payments; Personal Injury; Advertising Injury; and specialized liability protection for specific business types
Just as with the threat of legal action against your business, you also have the potential for damage to your commercial building, equipment or business property. That is where Commercial Property protection comes into play.
Depending on the coverage form that you select, Commercial Property pays for loss to your business' real property against perils such as:
• Windstorm or Hail
• ...and more.
To protect your business vehicles, you will want to make certain to ask us about commercial auto insurance.
Businessowners Policy (BOP)
Depending on the nature and size of your business you may qualify for a Businessowners Policy or "BOP". A BOP is an insurance package that assembles the basic coverages required by a business owner in one bundle. It is usually sold at a premium that is less than the total cost of purchasing the individual coverages separately. Most commonly a BOP is available for small shops and restaurants.
For additional information you can contact our agencies in Zanesville at 740-453-0791 or Newark at 740-344-9556 or you can request your quote now by simply clicking below. One of our account managers will review your information and be in contact with you.
TUESDAY, JULY 26, 2016
OSHA Set to Increase Fines Substantially
Many business owners don’t expect that the Occupational Safety and Health Administration (OSHA) would ever come to their business to conduct an inspection. Some business owners believe that their business is too small or they don’t have enough employees—would OSHA really take the time to inspect them? The answer is yes—and those inspections can yield costly fines that could be detrimental to a business.
Did you know that in 2014, 4,679 workers were killed on the job—that’s an average of 13 people every day.1 And on top of that, nearly 3 million non-fatal injuries were reported in 2014.2 It’s important to remember and appreciate that OSHA is here to protect the health and safety of all workers, and sometimes that means issuing citations and fines to employers so they comply with the regulations, which are the law!
On November 2, 2015, President Obama signed a new budget into law that included plans to raise OSHA citation fines by up to 80%. That was a result of an amendment to the Federal Civil Penalties Inflation Adjustment Act of 1990. The increase will be effective August 1, 2016. Prior to that, OSHA fines hadn’t increased since 1990.
Below is a chart of the current and proposed penalty levels that OSHA plans to levy on employers that do not comply with the regulations.
Current Maximum Penalty Level
August 2016 Maximum Penalty Level
Other than Serious
You can see how these fines could have a huge financial impact on a small business. And the maximum fines outlined above apply to each individual violation—not to the total number of violations a business may have. In addition, employers may now face much harsher sentences if convicted criminally. A new memo of understanding between OSHA and the Department of Justice places potential crimes under a new jurisdiction, which means a 6-month prison term could now be 25 years.
How can you prevent these types of fines at your business? Develop a written safety program highlighting how your business will comply with OSHA regulations. Conduct OSHA-required compliance training with your employees and document the training with employee sign-in sheets. Walk around your business on a daily basis to search for hazards and fix them before employees are injured. Get employees involved in your safety program—safety committees are always a good idea.
Article courtesy of Cathy B. of ACUITY Insurance