Tag Archive | business insurance

Is the Cyber Insurance Market Stabilizing?

I just wrapped up a sizable Cyber insurance policy renewal and based on the results of our marketing efforts, I think it’s a good indication that the market is beginning to stabilize.

The cyber insurance market has been in a hard market for the past several years.

This particular cyber insurance renewal is for a middle market company that works with Fortune 500 companies. They’re required to carry $50,000,000 in coverage by contract.

The insured’s services are viewed as a higher risk for the cyber market. It is a technology-based business that holds a lot of third-party sensitive data. They do about $75M – $80M in annual revenues. Cyber liability and data breach are definitely their primary risk exposures.

This policy renewal took 10 carriers to quota share the risk and the year-over-year premium is down in 2023 by 4-5%.

I had a feeling the renewal premium wouldn’t spike as hard as it did last year, but I was pleasantly surprised there was actually a slight DECREASE for this renewal.

The cyber insurance market is a lot like the mortgage industry prior to 2008.

Up until a few years ago, you could buy cyber insurance by providing very little information and carriers practically gave away quotes. And not very expensive ones relative to the risk.

Then hackers decimated the cyber insurance market with ransomware and social engineering attacks. Millions upon millions of claims dollars were being paid by carriers as a result.

Underwriting ultimately tightened and those looking to secure cyber insurance coverage must now show preventative measures are in place for their organizations such as data encryption, multi-factor authentication (MFA), data backups, etc.

Underwriters won’t even think twice about insuring a business if these types of measures are not in place.

Cyber insurance pricing and trends vary by company. However, in this particular case where we have a sizable middle market company with above-average cyber risk, a decrease in premium this year is a positive sign.

Let’s hope the cyber insurance market continues trending in this direction.

Each and every company/policyholder will see different outcomes with their cyber coverage and rates based on their own unique makeup. However, if you can show that your organization takes preventative measures to help mitigate cyber risk up front, you’re in a favorable spot.

-JK

It Takes Twice as Long to Close California Workers’ Comp Claims Compared to Other States

File this under the “I’m not surprised” file, it takes seven years to close most workers’ compensation claims in California, more than double the time in the median state.

The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) released a report detailing duration drivers for California workers’ compensation claims.

The report, Drivers of California Claim Duration, describes duration drivers for California workers’ comp claims, including how claim duration differs regionally across the state.

Here’s the report:

Highlights of the report include:

  • It takes seven years to close 90% of claims in California compared to three years for the median state.
  • Longer California claim duration is driven by four “duration drivers,” including a higher share of permanent partial disability and cumulative trauma claims in California, greater utilization of medical-legal services in California and regional differences within the state.
  • Claim closing rates rose steadily following the reforms of Senate Bill 863, particularly for PPD claims of lower-wage workers.
  • Claim closing rates declined during the pandemic in 2020 and were relatively flat in 2021.

California, why do you have to make everything so complicated? [banging head on desk]

Source: Insurance Journal

-JK

Be Observant When You’re Buying Insurance or Any Product or Service For That Matter

I’m working on some Worker’s Compensation insurance options for a referral which is a physician’s office. Very black and white with no question the proper classification is 8834 – Physician Practices and Outpatient Clinics.

This prospect received a “much less expensive” quote from one of the many carriers you see on every TV commercial break with their comedic ads. This quote was classified as a jewelry store with about a third of the total annual payroll. Of course, it is cheaper.

Folks, be observant when you’re buying insurance or any product or service for that matter. It’s only going to cost more in the long run if you don’t do your due diligence in reviewing and understanding what you’re buying. And most of that cost is YOUR time lost in trying to resolve the issue.

My Interview with Candy Messer on The Different Types of Insurance To Protect Your Business

Thank you to Candy Messer from Affordable Bookkeeping and Payroll Services for interviewing me on the topic of “The Different Types of Insurance To Protect Your Business” Some of the key items we discussed are:

  • Tailoring Insurance Coverage for each unique business
  • Commercial General Liability Insurance
  • Workers Compensation Insurance
  • Errors & Omissions (Professional Liability) Insurance
  • Do home based businesses need a business insurance policy?
  • Is business insurance required by law?
  • Insurance for contractual requirements and lease agreements
  • Employment Practices Liability Insurance
  • The difference between Commercial General Liability and Errors & Omissions Insurance
  • Cyber Liability / Data Breach Insurance
  • How much does business insurance cost?
  • Ways you can keep your insurance costs down
  • Negotiating premiums with Carrier underwriters

Check out our interview together here:

Thanks for watching

-JK

Insurance for Accountants, CPA’s and Bookkeepers

Accountants, CPA’s, Bookkeepers, Tax Preparers, and other financial services professionals work with a lot of sensitive, personal financial information which can expose them to high levels of risk. And that’s in addition to the every day risks they face – like damage to their place of business or business-related records, etc.

The Hartford is a great insurance carrier for Accountants, CPA’s & Bookkeepers and other financial professionals. They offer a product which bundles General Liability, Professional Liability (Errors & Omissions), Data Breach, Property, and Business Income into a single package policy at a really reasonable price.

Whether you’re a sole practitioner, or partner at a large accounting firm, you should consider The Hartford for your business insurance if you don’t have a policy with them already.

Contact me if you would like to see what The Hartford can offer. I am an appointed broker who can help you out with a quote for this.

-JK

Commercial Auto Insurance Prices Likely to Keep Rising

Most lines of insurance cycle between soft and hard markets over a number of years, which has a direct impact on the price of insurance. The commercial auto insurance market is currently hardening after many years of a soft market, which has resulted in higher prices for both commercial and personal auto policies.

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Between 2011 and 2016, competition between auto insurance carriers created a soft, buyer-friendly market. Since then, however, the high cost of claims and increasing costs of vehicle repairs have contributed to a noticeable transition in the market.

Contact me today. I can provide you with resources to help you understand and save on commercial auto insurance, including this prior post, “California Commercial Auto Insurance – Losses & Costs Rising.”

-JK

What Does Business Insurance Cover?

Business insurance coverage for a commercial operation can include the following and more:

General liability insurance: Covers third party liability claims for injuries to other people.

Professional liability and malpractice insurance: aka Errors & Omissions Insurance (E&O).  E&O covers professionals against loss due to negligent professional duty, wrongful acts, and advice and services that lead to another person’s loss or injury.

Product liability insurance: Covers against faulty products and damage, illness, injury or death that may occur from using a faulty product.

Property insurance: Covers loss and damage to your commercial business property due to fires, theft, storms and other causes.

Commercial vehicle insurance: Covers commercial vehicles and drivers for collision, liability, property damage, personal injury and “comprehensive” (now known as “other than collision”).

Workers compensation: Covers your employees if they become ill or injured while working on the job.

Loss of income: Also referred to as Business Income, this covers your business expenses such as rent and employee wages if you can’t operate your business.

Key person insurance: Covers loss of income that may result from the head of the business or other key personnel becoming incapacitated or passing away (also known as key man insurance).

Cyber-crime insurance: Provides protection for risks due to Internet use and online communications.

Each and every business is unique. A food products manufacturer or distributor  doesn’t have the same risk exposures as a software developer. As an everyday Joe, you’re expected to know if you need these coverage’s or not for your business. If your head is spinning or you’re feeling overwhelmed, this is why you work with an insurance agent or broker.

Let’s face it, most people really don’t like insurance, they don’t care to read their policies, and they just wish someone else would take care of it for them. I like insurance (don’t judge me), I read policy forms all day long for my clients, and people call me to handle all their business insurance needs so they don’t have to. Pick up the phone and call me today or email me if you have questions about these overage’s and whether your business needs them or not.

-JK

Man Sues Krispy Kreme For Not Having Real Fruit In Its Doughnuts

Yes, you read that title correctly. A Los Angeles man is suing Krispy Kreme doughnuts claiming they misled the public by naming its doughnuts in a way that led people to believe they contained vitamin-rich fruits, despite them being completely fruit-free.

Read more HERE

donuts

If you’re wondering what this has to do with anything, my point is that there are nut jobs all over the world like this who are sue happy and looking for a little extra money, even through a settlement. It’s imperative as a business that you carry commercial general liability insurance with product liability included. By carrying a policy for this, you have defense coverage under the policy to protect your business from even the frivolous claims.

Even though a judge could potentially throw this case out the window, there’s going to be legal fees that need to be paid no matter what. And the headache of dealing with this. Leave it to a commercial general liability policy to handle this for you so you can focus on the important things in running a business. Don’t think that only happens to the big guys like Krispy Kreme either. This can happen to ANY business, especially in litigious Southern California.

-JK

Cyber Security: Anatomy of a Main Street Hack

Two former FBI agents from Travelers Insurance Investigative Services hack into a typical business website and download sensitive data in a matter of minutes to demonstrate how quickly a cyber attack can happen:

Research shows that cyber criminals and hackers are attacking smaller “Main Street” companies who are often less prepared to prevent and respond to an attack.

Cyber insurance can protect companies before an event takes place by helping supply them with risk management tools and advice and access to other professionals in the data security community that can help with their information security.

Check out the full story: http://travl.rs/1WvPHQq

Have questions about cyber insurance? Interested in learning more about the various coverage’s included within a cyber insurance policy? Want to see what it would cost you to pick up cyber insurance for your business? Contact your insurance broker or me today to talk more.

-JK

Fire Destroys 96-Foot Christmas Tree Outside Costa Mesa Hotel

Yesterday, A 96-foot-tall Christmas tree went up in flames outside the Westin South Coast Plaza hotel in Costa Mesa. The tree was reportedly a $120,000 Evergreen.  Fire investigators don’t know how it started.The flames sent up a large plume of black smoke that could be seen from I-405 Monday morning. Here are a couple videos of the Christmas tree fire:

Here was the tree during the real lighting ceremony a few weeks ago:

Christmas Tree Lighting for South Coast Plaza. 🎄🎄🎄❄️❄️❄️

A video posted by Josh Guesman (@jgooss) on

Essentially, you can say there were two tree lighting ceremonies this year.

-JK

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