Tag Archive | Risk Management
June 18, 2014  

The Risk of Internet Business

As a modern day business owner, you have likely felt the push to become more web-involved. The Internet seems to be where businesses are concentrating efforts, whether they involve revamping your website to keep up with the competition or creating social media accounts to attract a new audience. Of course, charting a new business course presents new risks. Navigating the Internet can be difficult enough when dealing with multiple accounts, email marketing and search engine optimization, but you’re also responsible for protecting the information that you store there. Cyber liability insurance may be the answer.

  • In 2008, almost 50% of businesses reported they had 1 to 5 cyber risks.
  • The most expensive cyber risk incidents involve fraud, which averages a loss of almost $500,000.
  • In 2008, the most common cyber risk businesses faced were viruses, followed by inside abuse and then laptop theft.
  • In 2012, 36% of the business industry experienced a data breach.

To understand what protection cyber risk insurance provides, you must first understand the risk you face as a business. Cyber attacks don’t necessarily occur in the ether of Internet. Cyber attacks can also include computer hardware problems, communication media errors, system backup and operating system errors and even errors and fraud invoving internal people like system administrators.

A company can face three common types of cyber risks:

  • Natural: The most common errors and losses result from severe weather. For example, a lightning strike or power surge can severely damage or destroy an entire database.
  • Human error: These unintentional acts can involve something as simple as leaving a laptop that has access to patient medical records, at the airport.
  • Intentional: This involves illegal criminal activity and can occur outside the organization, by hackers or criminals, or inside the organization.

No matter what kind of cyber attack you experience, the consequences of an attack can be expensive. In addition to retrieving information and establishing new cyber protocols, many companies have to perform clean-up efforts with a customer base. Cyber liability insurance can help with each step of recovery.

Source: Trusted Choice

-JK

April 3, 2014  

California Is Riskiest State for Employee Lawsuits

A new study by Hiscox revealed that, on average, a United States-based business with at least 10 employees has a 12.5% chance of having an employment liability charge filed against them. However, California has the most frequent incidences of Employment Practices Liability charges in the country and businesses in the state have a 42% higher chance of being sued by an employee than the national average! Not surprising!

hiscox-study-reveals-riskiest-statess-for-employee-lawsuits-1250

Behind California, #2 is Illinois, #3 – Alabama, #4 – Arizona & Mississippi. and #5 is Georgia.

The Hiscox survey reveals that lower-risk states for Employment Practices Liability charges include Massachusetts, Michigan, Kentucky, Washington and West Virginia.

One way to help mitigate loss from an employee, potential employee, or former employee suing your business for an employment related claim is to purchase an Employment Practices Liability Insurance policy. Workers Compensation Insurance does NOT cover Employment Practices Liability related claims!

-JK

Source – PropertyCasualty360

March 27, 2014  

What To Keep In Your Earthquake Survival Kits At Home and In The Car

My wife and I have recently been (slowly) assembling an earthquake survival kit at our home….better late than never, right? So what better timing to catch this story in the Los Angeles Times.

I never really thought about stocking up my car, but that wouldn’t be a bad idea.

Here’s a nice little visual to reference which was also taken from the L.A. Times on Preparing your earthquake survival kit

la-me-earthquake-checklist-g

Here in Southern California, we really haven’t dealt with any large significant tremors since the 1994 Northridge earthquake so it’s easy to get complacent about being prepared with an  earthquake survival kit. Like us, start thinking about putting one together in your house or car! Better late than never!

-JK

March 24, 2014  

Forklift Operator Knocks Over $100,000 Worth of Liquor

As seen in this Youtube video, “in a Russian liquor warehouse, a forklift driver hits the gas in reverse and plows into a warehouse rack filled with liquor, causing a domino effect that brings down half the warehouse. There was over a hundred thousand dollars in damage. The driver survived. No report if he is still employed.”

All joking aside, an accident like this can have a vast impact on your business operations such as Property Damage with the destroyed product. Think about the extensive clean up and reorganization; the suspense of business operations/ business income/interruption exposure. Also, from a Workers Compensation and Employee Disability standpoint, there are injured employees which means lost time, recovery, employee shortage, and training costs for other employees to fill the void. This can have a devastating impact on your bottom line.

Here are some Safety Tips For Forklift Drivers:

Maintenance

  • Each day, check that the forklift is ready for the day’s work and perform any necessary maintenance before operating.
  • Report any malfunction or poor performance to your supervisor immediately.

Loading

  • Use reverse when going down inclines and go forward up inclines.
  • Do not travel with the load elevated, and keep the load stable and as close to the floor as possible.
  • Avoid raising or lowering a load while the forklift is moving.
  • Always keep the load tilted back towards the carriage while raising and lowering.
  • Make sure the load is balanced and is within the capacity of the truck.
  • Never use the forks as a personnel elevator unless properly equipped.

Driving

  • Always make sure your driving path is clear.
  • Slow down for corners, blind spots and doorways.
  • Drive defensively by always being aware of your surroundings and watching for the unexpected.
  • Be aware of ground conditions and always take the smoothest possible path.
  • Never try to turn on an incline.
  • Cross tracks diagonally and slow down for uneven surfaces.
  • Keeps legs, arms, feet, hands and head inside the forklift.
  • Be aware of others around the job site, in case they do not see you.
  • Always give those on foot the right of way.
  • Stay out from under forks and loads.
  • Never show off or use the machine for anything other than your specified job tasks.
  • Never give anyone a ride or allow anyone who is untrained to operate the forklift.

Finally, here’s a Sample Performance Test for Forklift Operators for reference to monitor your employee forklift drivers.

Minimize, monitor, and control the probability and/or impact of unfortunate events before they happen. That’s what Risk Management is all about.

-JK

January 20, 2014  

Governor Brown Declares Drought State of Emergency in California

From the Office of Governor Edmund G. Brown Jr. 

SAN FRANCISCO – With California facing water shortfalls in the driest year in recorded state history, Governor Edmund G. Brown Jr. today proclaimed a State of Emergency and directed state officials to take all necessary actions to prepare for these drought conditions.

CA Drought“We can’t make it rain, but we can be much better prepared for the terrible consequences that California’s drought now threatens, including dramatically less water for our farms and communities and increased fires in both urban and rural areas,” said Governor Brown. “I’ve declared this emergency and I’m calling all Californians to conserve water in every way possible.”

In the State of Emergency declaration, Governor Brown directed state officials to assist farmers and communities that are economically impacted by dry conditions and to ensure the state can respond if Californians face drinking water shortages. The Governor also directed state agencies to use less water and hire more firefighters and initiated a greatly expanded water conservation public awareness campaign (details at saveourh2o.org).

In addition, the proclamation gives state water officials more flexibility to manage supply throughout California under drought conditions.

State water officials say that California’s river and reservoirs are below their record lows. Manual and electronic readings record the snowpack’s statewide water content at about 20 percent of normal average for this time of year.

The Governor’s drought State of Emergency follows a series of actions the administration has taken to ensure that California is prepared for record dry conditions. In May 2013, Governor Brown issued an Executive Order to direct state water officials to expedite the review and processing of voluntary transfers of water and water rights. In December, the Governor formed a Drought Task Force to review expected water allocations, California’s preparedness for water scarcity and whether conditions merit a drought declaration. Earlier this week, the Governor toured the Central Valley and spoke with growers and others impacted by California’s record dry conditions.

-JK

 

January 17, 2014  

Top 10 U.S. Business Risks for 2014

According to the “Allianz Risk Barometer,” a survey from Allianz Global Corporate & Specialty SE, the top 10 U.S. Business Risks are:

  1. Business interruption, supply chain (61 percent)
  2. Natural catastrophes (58 percent)
  3. Fire/explosion (24 percent)
  4. Loss of reputation, brand value (17 percent)
  5. Cyber crime, IT failure, espionage (15 percent)
  6. Intensified competition (12 percent)
  7. Quality deficiencies, serial defects (10 percent)
  8. Environmental changes (10 percent)
  9. Changes in legislation and regulation (10 percent)
  10. Market stagnation or decline (10 percent)

Loss of reputation or brand value joined the top 10 list, and was the fourth ranked business risk as cited by U.S. companies.  Cybercrime, including IT failures and espionage, were No. 5. Those rankings were lower for non-U.S. companies, which ranked cyber at No. 8 and loss of reputation at No. 6.

Source: Insurance Networking News

-JK

January 16, 2014  

Disaster Preparedness For Businesses

Did you know that:

  • Only 26% of small to medium-sized businesses have disaster recovery plans in place.
  • At least 40% of businesses affected by natural or man-made disasters NEVER re-open.
  • 53% of business owners never recoup losses incurred by disasters.

If you don’t have a disaster recovery plan in place for your business, call your current insurance broker for help, or contact me anytime for resources. Not only is your property insurance important, but you must be proactive with your risk management plans to mitigate loss.

Disaster Preparedness-JK

 

January 7, 2014  

Powerful Driving-Safety Ad

This powerful and simple driving safety advertisement from the New Zealand Transport Agency will really make you think about speeding and will probably give you some serious goosebumps when you watch it.

From Mashable: the public-service announcement dissects an accident by freezing the moment before impact. A man who pulled out of an intersection too fast pleads for his life and that of his son. The request falls on deaf ears, though. “I’m going too fast,” replies the driver of the oncoming car. The point: Other drivers make mistakes, too, so be careful.

Take a look for yourself:

Be careful out there and make sure you think of others first before yourself when you’re running late for that party, for work, or wherever else you’re trying get to. Give yourself plenty of time so that you’re not putting yourself in the situation where you feel the need to speed.

-JK

December 19, 2013  

Minimum Wage Increases for 2014

As of December 1, 2013, 14 states, including California, have announced an increase in their minimum wage rate. In addition to California, these states are: New York, Arizona, Colorado, Connecticut, Florida, Missouri, Montana, New Jersey, Ohio, Oregon, Rhode Island, Vermont, and Washington.

Employers in these states should review their employees’ wage payment rates and update their minimum wage poster requirements as necessary to ensure their compliance with state regulations.

Here are the 2014 minimum wage rates for all of these states:

2014 Minimum Wage Rates-JK

December 18, 2013  

2014 Marketing Ideas

As 2013 comes winding down to a close, I’ve been thinking long and hard of new ways and ideas to market myself as a reputable business insurance agent/broker. How about a sign waving mannequin in front of the agency?

This commands respect! I’m sure the neighbors in Torrance and Palos Verdes would love seeing this on their sidewalks.  And business owners will be lining up to talk about their insurance needs.

Back to the drawing board…

-JK

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