Tag Archive for: benchmark commercial insurance

homeowners policy

what’s included in a standard homeowners policy?

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Owning a home is likely the largest investment you will make. The benefits are many, including stabilizing your housing costs with a fixed mortgage, gaining equity and taking advantage of tax benefits. How can you best protect your investment? Homeowners insurance is designed to do just that.

Unlike car insurance, home insurance isn’t required by law. You can own a home without a homeowners insurance policy, but only if you bought your home outright and are willing to gamble with such a large asset. If you have a mortgage, your lender will most likely require you to have a homeowners policy.

When considering what is covered under a standard homeowners policy, you may have asked yourself questions like, “Do I actually need more coverage than what is included?” or “Do I need extra earthquake or flood coverage?”

We’ll help you understand what is covered, what is not and whether your current policy is comprehensive enough for your situation.

coverage basics

A homeowners insurance policy exists to protect your home against accidental losses. Standard coverage falls under four areas:

  • Structural coverage pays to rebuild or repair your home due to damage or destruction. It covers damage or destruction due to fire, water and acts of nature, like tornadoes, hurricanes, lightning and hail.
  • Personal property coverage protects your personal belongings in case your clothes, furniture and other personal items are stolen or destroyed. Expensive items like jewelry, art and collectibles are covered as well, but may have dollar limits.
  • Liability protection protects you against lawsuits from injury or damage that you or your family cause to other people. If, for example, your child accidentally breaks a neighbor’s antique dishes, your homeowners policy will cover it.
  • Additional living expenses covers living expenses incurred while you’re living away from home because of damage from a disaster.

Damage resulting from earthquakes, landslides, mudslides and floods is not covered. You’ll need to purchase additional insurance if you live in a flood zone or in an area with frequent earthquakes. If you’re wondering how much structural coverage to purchase, here’s a good general rule: Purchase enough to rebuild your home.

To make sure valuables are covered for their appraised value, consider adding a personal property floater to your policy. Personal belongings coverage extends to items that are stored away from your home too, such as in a storage facility.

Insurance doesn’t include normal wear and tear to your home or to items in your home. For example, if your refrigerator suddenly stops working, water seeps in through a crack in the foundation or your sink begins to leak, you’re responsible for the repairs.

Your liability protection also provides no-fault medical coverage in case a visitor is injured in your home, such as if they twist an ankle on your stairs. If you’re brought to court, liability coverage pays for the cost of defending you in court and any damages you must pay (up to the limit stated in your policy).

what’s not covered

There is a handful of situations other than wear and tear that a standard homeowners policy doesn’t cover, despite the fact that they are somewhat common. These situations include:

  • Dog bites. Some dog breeds known to be aggressive are completely excluded from coverage. Chances are, your dog won’t be covered by your policy if he or she has bitten someone before, even if not considered an aggressive breed.
  • Mold. Some insurance companies will add an endorsement for mold coverage, but you must pay for it. The best way to avoid mold issues is to be aware of moisture buildup in the first place.
  • Pool accidents. A high number of fatalities occur in residential pools, increasing your liability. A policy may include coverage for the pool, but you’ll have to declare it and will likely have to buy additional liability coverage.
  • Sewer backup. Sewer backups can cause major damage to your home’s floors, walls and electrical systems. If you think this could happen to your home, consider buying extra coverage.

While homeowners insurance is designed to protect your home, it’s important to be prepared for any situation that may arise. Talk with your insurance broker about your current coverage and whether your policy meets all your needs.

employer explaining how to promote a safe work environment

how to promote a safe work environment

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As an employer, workplace safety should be one of your top priorities. Not only is it legally required, but it’s the right thing to do. In this blog post, we will discuss some of the basics of workplace safety and how you can promote a safe work environment for your employees. 

We’ll also take a look at OSHA’s requirements for workplace safety and how you can ensure that your business is in compliance. By taking the necessary steps to reduce workplace injuries and hazards, employers can help ensure that their business runs smoothly and safely. Additionally, this will also result in immense cost savings for businesses in the long run.

workplace safety policies 

First and foremost, workplace safety should start with your policies. Make sure that you have a clear workplace safety policy in place that outlines the standards and expectations of workplace safety and how they will be enforced. This policy should include topics such as:

  • Workplace hazards
  • Safe work practices
  • Health and safety training 
  • And more

employee awareness

Ensure that your employees understand and follow the workplace safety policies, and that they are regularly reminded about their responsibility to work safely and report any workplace hazards or accidents. You can also provide regular workplace safety training sessions or seminars to ensure that your employees are up-to-date on workplace safety practices.

OSHA

OSHA, or the Occupational Safety and Health Administration, is a federal agency that sets workplace safety standards. These standards help ensure employers provide safe working conditions for their employees. OSHA also oversees workplace inspections, provides workplace safety training and education, and offers safety incentive programs to encourage employers to prioritize workplace safety.

In order to create a safe workplace for your employees, employers must understand and comply with OSHA requirements. This includes having workplace safety policies in place to:

  • Address common workplace hazards
  • Provide safety training to all new and existing employees
  • Conduct periodic workplace inspections to identify any potential hazards or unsafe conditions

Additionally, employers should look into establishing safety incentive programs. These programs can incentivize employees to practice workplace safety and help create a workplace culture of safety. Employers should also provide frequent workplace safety training so that all employees are well versed in workplace safety policies and procedures.

steps to promote workplace safety

Having workplace safety policies in place and following OSHA requirements are the most basic responsibilities of an employer. Beyond that, there are several ways to promote a safe work environment:

  1. Provide training – Make sure employees have received proper instruction on workplace safety procedures, as well as any other industry-specific hazards they may encounter.
  2. Offer safety gear – Ensure employees have the necessary protective equipment, such as hard hats, goggles, and earplugs.
  3. Perform regular workplace inspections – These can help uncover any potential safety hazards or compliance issues that need to be addressed.
  4. Have a reporting system in place – Employees should feel comfortable reporting workplace accidents or other safety issues.
  5. Develop a workplace safety culture – Encourage employees to share any workplace safety ideas and suggestions.
  6. Offer rewards for exemplary workplace safety performance – This can help motivate employees to take workplace safety seriously and follow safety protocols.
  7. Provide ongoing education – Give employees access to resources that allow them to stay up-to-date on workplace safety and OSHA regulations.
  8. Establish a workplace safety committee – A workplace safety committee can keep everyone informed about workplace safety issues, as well as suggest new initiatives for keeping the workplace safe.
  9. Invest in the latest technology – Investing in the latest workplace safety technology can help prevent workplace accidents and ensure compliance with regulations.
  10. Have an emergency plan in place – Make sure everyone knows what to do in the event of an emergency, such as a fire or earthquake.

By following these steps and promoting workplace safety, you can ensure that your workplace is safe and in compliance with OSHA’s workplace safety requirements. Doing so will not only protect your employees, but also help to minimize workplace accidents and injuries. 

in summary

By taking proactive steps to promote workplace safety, employers can not only keep their employees safe but also protect their business from potential lawsuits or other legal consequences. Workplace safety is not an option; it’s a requirement. Taking the necessary steps to ensure workplace safety can help employers stay compliant with regulations and create a safe workplace for everyone. 

Learn more by reading our blog about how increasing workplace safety can help reduce insurance costs for your business.

insurance for e-bikes

e-bikes: responsibility and danger

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As e-bikes become more popular, the danger to both the rider and those around them also increases. While these bikes can be a great way to get around town, it is important that riders take responsibility for their actions and are aware of the dangers they present.

In this blog post, we will discuss some of the dangers associated with e-bikes and what riders can do to stay safe while enjoying this new form of transportation!

what is an e-bike?

An e-bike, or electric bike, is a bicycle equipped with battery power motors to aid with pedaling (either partially or completely depending on the bike).

In the state of California, electric bicycles can be classified according to their top speeds and type of assistance they provide. 

  • Class 1 e-bikes are powered solely through pedal-assistance, with no throttle option and a maximum speed of 20 mph.
  • Class 2 electric bikes feature both pedal-assistance and a throttle, also reaching a top speed of 20 mph.
  • Class 3 e-bikes offer pedal-assistance only, no throttle, but can reach a maximum speed of 28 mph.

e-bike dangers

E-bikes provide an exciting new way to get around town, but they also come with certain increased risks of injury that include: 

Speed 

E-bikes often have powerful electric motors that can propel them at higher speeds, making it easy to lose control if the rider is not careful. Because e-bikes can go faster than traditional bikes, riders may be more likely to suffer from road rash or other injuries if they crash. 

Weight

E-bikes tend to be heavier than traditional bikes, meaning they have more momentum and require a longer stopping distance. This can be dangerous if the rider is not prepared for sudden stops or has poor visibility of their surroundings. So riders may be more likely to suffer from musculoskeletal injuries if they fall off or are involved in an accident. 

Technology 

Since e-bikes have lithium ion batteries, riders may be at risk of electrical shocks if the batteries are damaged. Like any vehicle, electric bikes can malfunction or be subject to defects. It’s important for all riders of electric bicycles to make sure their bike is regularly serviced and maintained according to manufacturer guidelines in order to ensure their safety. 

To reduce the risk of an accident, riders should pay attention to their speed and make sure to obey the local laws. Additionally riders should always wear a helmet and exercise caution when navigating busy streets or other areas with traffic.

e-bike rules and regulations

Riders also need to be familiar with the laws and regulations regarding e-bikes in their area in order to stay safe on the road. Many states and cities have different laws regarding electric bikes, so it is important that riders know the rules before taking their e-bike out for a ride. Additionally, riders: 

  • should never ride an e-bike if they are under the influence of drugs or alcohol
  • must be mindful of the potential dangers posed by other riders on the road 
  • need to be aware that pedestrians, vehicles, and other e-bike riders can all present hazards to the rider 
  • should always be aware of their surroundings and take extra care when overtaking or being overtaken by another rider

It is important to remember that when operating an e-bike, rider responsibility and caution are key. With the right knowledge, riders can enjoy this newer form of transportation while staying safe and responsible!

e-bike laws and regulations in california

In California, e-bike riders must be at least 16 years old, and must wear a helmet when riding an e-bike.

The California Vehicle Code states that e-bikes are not allowed on public roads with speed limits over 25 mph, sidewalks, or bicycle paths—unless the e-bike is classified as low-speed. Additionally, e-bikes must have functioning brakes and lighting systems when used at night.

It is important for e-bike riders to remember their responsibility and the potential danger of riding an e-bike. E-bikes are powerful machines that can accelerate quickly and reach high speeds—which means they require extra caution when traveling in traffic. Riders must obey laws, signs, and signals to ensure the safety of all nearby riders, pedestrians and drivers.

Riders should plan their route ahead of time by following bike routes where possible, and they should always ride defensively. By following safety precautions and e-bike laws and regulations in California, riders can have an enjoyable yet responsible experience on the roads!

safety guidelines for riding an e-bike

Riding an e-bike comes with risks and responsibilities. To ensure that you are safe and responsible on the road, keep these guidelines in mind:

  1. Wear a Helmet – A helmet is essential to protect your head if you were to accidentally fall off your e-bike. Additionally, it is important to make sure your helmet fits properly as an ill-fitting helmet will not provide adequate protection.
  2. Follow Traffic Rules – As with any vehicle, it is important to stay aware of your surroundings and follow traffic rules such as speed limits, stop signs, and red lights.
  3. Don’t Ride Too Fast – Riding too quickly can make it difficult to react quickly in case of an emergency. Make sure you are aware of potential obstacles on the road and ride at a reasonable speed.
  4. Follow Rules for Paths and Trails – If you are riding your e-bike on a path or trail, be sure to follow all posted rules and regulations. Additionally, when passing other riders, make sure to give them plenty of space.
  5. Have the Right Equipment – Make sure that your e-bike is fitted with the proper equipment for riding such as lights and reflectors for visibility. Also, it’s a good idea to inspect all components of your e-bike before each ride to ensure everything is in working condition.
  6. Be Aware of Your Surroundings – When riding, it is important to be aware of potential obstacles such as potholes, rocks, and other objects that may not be visible. Be mindful of traffic around you and the direction in which it is moving.
  7. Dress Appropriately – To ensure your safety while riding an e-bike, it is important to dress appropriately. Consider wearing clothing with reflective strips, brightly colored clothes, gloves, long pants, and closed-toe shoes that provide adequate protection.
  8. Don’t Ride Under the Influence – Riding an e-bike while under the influence of drugs or alcohol is dangerous and illegal in most places. Avoid riding when impaired for your own safety and for those around you.
  9. Be Aware of the Battery Life – Make sure that your e-bike battery is fully charged before you start riding. Furthermore, be aware of how far you can travel with the current charge and plan accordingly.
  10. Be Aware of Electric Components – Be sure to stay away from any wires or electric components on your e-bike when charging it or making repairs. Never ride with any exposed wires or faulty parts that could create a hazard.

These safety guidelines can help ensure that you are riding your e-bike responsibly and safely. Enjoy your ride!

final thoughts

By following the safety guidelines outlined in this blog post, riders can enjoy all that e-bikes have to offer while staying safe and taking responsibility. E-bikes can be a wonderful way to get around, but riders must take the time to familiarize themselves with the potential dangers they present in order to keep themselves and those around them safe.

In short, it is important for all e-bike riders to always obey traffic laws, plan ahead, and remain aware of their surroundings while on the road. By doing so, they can minimize the risks of accidents and ensure a safe ride for all.

At benchmark, we recommend insuring your e-bike for an extra layer of protection. Reach out to us or read about e-bike insurance coverage on our blog to learn more. 

insured learning how to reduce insurance cost

how to reduce your insurance cost

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If you’re like most people, your insurance has recently gone up with seemingly no explanation. However, your insurance premiums could be increasing for a number of reasons (but more on this later!). 

This leaves many insureds asking, “how can I reduce my insurance cost?” Check out the video below for tips from benchmark’s own Rob Cohen on what you can do to reduce your insurance cost.

Now, let’s take a quick look at why insurance rates are rising.

why are insurance premiums increasing?

D&O, EPLI, Property, General Liability, and Umbrella policies are all going up 15% to 30% year over year.

Below are some factors causing increased insurance costs:

  1. Increased Risk Factors. The rezoning of certain open areas as high-risk fire zones has increased carriers’ perception of risk and therefore, is driving up prices.
  2. Re-insurance. Insurance carriers purchase insurance similar to a policyholder. However, due to consistent years of catastrophic losses, the availability has been restricted and costs to insurers has increased.
  3. Labor Shortages. Changes in immigration law, in combination with stricter criteria for classifying 1099 vs. W-2 workers, have added to the labor shortage post-pandemic markets are experiencing.
  4. Supply Chain Disruption. Shipping routes are overrun, ports are backlogged, shipping containers are in short supply, and trains are delayed causing domino-like effects to businesses. With increases in cost and time to deliver goods comes an increased risk of in-transit losses and loss of business market share.
  5. The Pandemic. With all of the increased insurance claims from COVID-related closures, insurance companies have paid out millions in unanticipated claims.
  6. Inflation. Property values are soaring and insurance premiums are along for the ride. Insurers have become picky about whom they will insure, causing an increase in policy movement from broker to broker and carrier to carrier. 
  7. Increase Cyber Threats. Office-level security firewalls are not present with people working from home. This, in combination with the widespread usage of online payment options in more businesses, has raised the cost of cyber liability coverage.

These seven cost increases are complicated, global, and not going anywhere. Want to know what you can do to get your costs down? 

how to lower your insurance cost: according to rob 

One of the questions Rob gets asked most is, “-what can I do to reduce my insurance cost?” 

We first have to look at what line of coverage you want to reduce the most. “Property and general liability premiums and rates are fairly static in that they are dependent upon location.”  

If your business resides in a wildfire zone, there’s really nothing you can do to reduce the cost of that insurance. 

remapping of “fire zones”

To a carrier, all insurance companies have become keenly aware of what they now consider fire zones, as well as the concentration of insured value that resides within these zones.

Both commercial and residential insures have undergone varying degrees of re-evaluating what they now consider to be locations residing in, or adjacent to, a newly established fire zone. You may have had friends, or even neighbors, complain of non-renewal notices they received from their current insurer.

Again, to a carrier, underwriters refuse to discuss any type of exception we may want to make regarding their “fire-zone” evaluation. Each carrier has determined, through their re-insurance treaty with their re-insurance carrier, what they are allowed or not allowed to write.

They will not make exceptions for any policyholder, which means remapping for fire zones has forced many policyholders back into the market due to the non-renewal of many policies. This is a market with a limited supply.

insurance you can reduce

Rob explains that “-if we’re talking about employment practices liability, directors and officers liability, cyber liability, many of the underwriters will dig into the underwriting and look for things like current employee handbooks, proper employee policy and procedure disclosures. 

On the directors and officers liability side, they look a lot now. On directors and officers liability, underwriters dig into the financials of the insured. They want to make sure that the business is running well and economically sound. 

On cyber liability, the underwriters want to understand more about how you are protecting your electronic systems. So these things should be discussed and reviewed with your broker.”

If you have any questions, feel free to reach out to Benchmark or Rob. 

Two blue toy cars crashing headfirst with stacks of coins behind them.

auto insurance – the EPIC payouts are costing YOU

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As the world starts to return to normal following the pandemic, auto insurers are facing a tough road ahead. With people staying home and working remotely, there were far fewer miles driven during the pandemic. This led to a drop in auto losses and insurance payouts.

 

Now that things are beginning to open back up, people are starting to drive more again. However, due to Proposition 103, which bases auto premiums on mileage-driven, insurers will be struggling to keep up with demand. So while the post-pandemic landscape may look promising for some industries, auto insurers unfortunately have a long road ahead.

 

In this blog post, we will discuss what’s happening in the auto insurance industry and how it may financially impact both the insurer and the insured. 

the current state of auto insurance

Carriers are now struggling to catch up with insureds and get adequate rates in light of increased exposure. Other factors such as supply chain issues, labor shortages, and increased wages have caused claim costs to rise, while vehicle repair times have more than doubled. As a result, both new and used vehicle prices are at all-time highs, resulting in increased costs when vehicles are totaled in an accident.

what does this all mean?

This means that auto insurance carriers will have to find ways to cut costs and increase efficiency in order to stay afloat. One way they may do this is by increasing the use of technology, such as telematics, to help them better assess risk. They may also move towards a more pay-as-you-go model, where customers are only charged for the amount of coverage they actually use. Whatever changes auto insurers make in the post-pandemic landscape, one thing is for sure: they will need to be adaptable and agile in order to survive.

how are auto insurers coping?

Auto insurance companies have requested 15-20% rate increases in order to maintain profitability, but the Department of Insurance has refused to grant these requests. As a result, many carriers are struggling to keep up with rising costs. Some carriers have been told by the DOI not to bother filing for any rate increases, as they are unlikely to be approved. This lack of approval has been going on for two years now. Consequently, auto insurance rates have remained stagnant during this time period.

what does this mean for consumers? 

These changes mean that auto insurance rates are likely to remain unchanged in the near future. And right now, premiums are at an all-time high. This is good news for those who are already struggling to pay their premiums. However, it also means that insurers will continue to struggle to pay claims, which could lead to longer wait times for repairs and other services.

 

Auto insurance companies are struggling right now because they are having to pay out more money in claims than they are bringing in through premiums. This is especially true for policies that were written recently since insurers didn’t collect the full premium upfront. To try to fix this, some auto insurers have stopped writing new policies altogether, at least through independent agents.

the issues at hand 

This is a problem because people who need auto insurance still need to be able to get it. Hopefully, this will all be sorted out soon so that everyone who needs auto insurance can get it again without any trouble.

 

One carrier shared that the loss ratios on first-year written policies, starting with policies written in the month of January through the month of June, were 121% 128% 120% 128% 115% 118%. This means that for every dollar that was collected in premiums, the insurance company had to pay out $121-$128 in claims. So they are losing money on these policies. 

 

The auto insurers are facing higher payouts, and they will need to recoup those losses somehow. And that means that these huge payouts are costing consumers in the long run. Premiums are likely to stay high to compensate for the increased payouts. At the same time, insurers are taking much longer to issue these payouts while they adjust to post-pandemic challenges. 

the future of auto insurance

First-year auto insurance policies always run a higher loss ratio because the premium is not collected upfront. That is why we’ve seen so many carriers require payment in full on new policies.

 

Some insurers have tried to fix this problem by requiring that people pay the full premium upfront when they get a new policy. But this was rejected last week by the DOI (Department of Insurance).

 

Some auto insurance carriers are trying to make it harder to write new business by only allowing quotes and new policies to be written on their own websites. This is because they want people to buy less auto insurance, or stop buying it altogether. 

final thoughts

During the pandemic, people drove less because they were staying home. This meant that there were fewer accidents and insurance companies had to pay out less money. Now that the pandemic is mostly over, people are driving more and insurance companies are having to pay out more money again. Insurance companies are also having to pay more for repairs because it’s taking longer to get parts and labor is more expensive. So all of this together means that auto insurance rates will likely stay high.

 

Despite these challenges, auto insurers are still committed to providing coverage for their customers. They are working hard to ensure that claims are processed quickly and efficiently and that rates do not increase too much. The pandemic has been a difficult time for everyone, but auto insurers are doing their best to keep the roads safe for all of us.

 

Reach out to our team if you have any questions or concerns regarding auto insurance. 


water leak, flooding a room with a wood floor, a couch and windows.

ensuring your business has appropriate water damage coverage

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You might be looking at the title of this article thinking… “Why does my business need water damage coverage?”

Well, contrary to popular belief, water damage is one of the leading insurance losses, and can greatly impact your business. In fact, water damage is the second most common insurance claim for businesses. 

This considered, it’s important to take the proper steps to mitigate the high risk of water damage by having the proper insurance coverage.

does my insurance include water damage coverage? 

It’s important to have the right kind of business insurance for your commercial property. You want a policy that includes commercial water damage coverage.

The types of water damage claims covered by some commercial property insurance plans include:

  • Pipe breakage
  • Groundwater, and
  • Backed-up sewer lines

However, many policies exclude coverage for external flooding and mold-related damage.

For some insurance plans, you can purchase additional protection to your property policy to gain more coverage. There are also other types of insurance policies—for example, commercial flood protection or business interruption insurance—that can help safeguard your business from loss of income if your business has to close due to flooding or water damage.

what qualifies as water damage?

Commercial water damage is the destruction that a water-related issue can cause to your commercial property.

Damage can range from a corroded pipe bursting, a defective or improperly installed fitting can leak, and failed heating systems. All of these damages can result in major non-weather-related water disasters.

Common kinds of commercial water damage can come from many sources on the property. Always monitor your building to be aware of the areas where water damage can occur so you can be prepared if it does.

monitor your building

Pay careful attention to these parts of your property:

  • Roofs require maintenance to prevent damage from the elements
  • Pipes can easily leak or get damaged from extremely cold temperatures or old age
  • HVAC system can also leak or break due to a lack of maintenance or overuse

why is water damage not included in my property insurance?

Commercial property insurance commonly covers the loss of or damage to a property owned by a business. The damage that is covered includes:

  • Fire
  • Wind
  • Lightning
  • Explosions
  • Theft, and
  • Vandalism

However, most commercial property insurance does not include water damage. That’s why it’s important to know what your policies cover. Flood insurance is actually covered under a separate policy and can be purchased separately.

reach out to benchmark commercial insurance

Water damage is typically affected by the weather or a natural disaster that can create damage to your property—even with preventative measures, you can’t always control what happens.

Having a proper disaster plan, a building with adequate drainage systems, and regular maintenance and inspection schedules will help prevent damage and accidents.

Having a water damage insurance policy provides you coverage to help with the financial liability costs due to water damage. To find out more about water damage insurance and property insurance reach out to us or read on about why water damage is a top insurance loss.

choosing your cyber insurance plan: why it matters

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reviewing Forbes’ “The Importance Of Cyber Insurance And How To Choose A Plan”

We know… If there’s one thing we’ve covered time and time again on our blog, it’s cyber insurance. But for good reason!

Contrary to popular belief, it’s not just large corporations that face cyber attacks. Small businesses are targeted daily and often face more severe financial consequences, as they typically lack the cybersecurity safeguards of larger organizations.

In fact, 60% of small businesses close within six months of falling victim to a cyber attack and according to Hiscox, the average financial cost for a small business to recover was more than $25,000 in 2021. Yikes!

To illustrate the severity of cyber attacks, we’ve pulled a few statistics on some of the biggest data breaches in history:

the biggest data breaches in history

Did you know…

  • In 2013, an attack against Yahoo resulted in the loss of data from more than three billion accounts (Yes, billion!)
  • Approximately 143 million consumers were affected by an attack on Equifax in 2017, which ended up costing them more than $4 billion. (Equifax was found liable for the breach and fined $425 million by the Federal Trade Commission… Ouch!)
  • The data breach of hotel firm Marriott-Starwood resulted in the loss or compromise of information belonging to more than 500 million consumers
  • The 2017 WannaCry ransomware attack contained a virus that infected more than 230,000 machines spanning 150 countries (this caused damage of at least $4 billion…)

The statistics considered, businesses of all sizes should prepare for the growing cybersecurity threat.

How? Cyber insurance is a great first step.

infographic for "choosing your cyber insurance plan why it matters"

In the Forbes article below, you’ll learn more about the importance of cyber insurance, costs, risk assessments, and more.

Read on for the full Forbes article by Mark Roberts.

The Importance Of Cyber Insurance And How To Choose A Plan

In my recent pieces, I have talked about how and why businesses should prepare for the growing cybersecurity threat and ensure their security protocols are adequate for today’s dangers and position to evolve for future risks.

It’s one of those topics that feels like it’s over-discussed. However, considering the increasingly dangerous landscape for businesses, it’s a topic whose importance that can’t be overstated.

The experts have made it clear: Bad actors are increasingly launching cyberattacks in the United States and globally. One doesn’t need a crystal ball to recognize that these cyberthreats could continue to grow.

Cyberattacks are a big business today; just look at ransomware as a service (RaaS), the bad-actor version of software as a service (Saas). As long as bad actors can continue to find companies and organizations to victimize, they won’t cease their efforts.

The Identity Theft Resource Center’s (ITRC) 2021 Annual Data Breach Report revealed there were more “cyberattack-related data compromises” (1,603) in 2021 than “all data compromises” in 2020 (1,108). These attacks increased in nearly every primary business sector.

According to 2021 research from Hiscox, an international specialist insurer, roughly one-quarter (23%) of small businesses suffered a cyberattack in the span of 12 months, and the average financial cost to a small business was more than $25,000.

Now is the time to prepare for potential risks that could impede operations. Too often, businesses delay simply because they don’t know where to start the process.

The most logical starting point is to explore the benefits of cyber insurance, a topic my company consults on for clients and the importance of which I’ve come to understand firsthand as a CMO.

Why does a company need cyber insurance?

Most companies carry at least one form of insurance, such as commercial or business insurance. While this type of insurance protects against property damage or employee-related risks, many companies believe their insurance will cover them should they fall victim to a cyberattack.

However, not all insurance companies cover damages resulting from cyberattacks under these general policies. Instead, they have launched specialized products designed exclusively for cyberattacks.

Unfortunately, there are a few hurdles to attaining these policies; they often require companies to secure a vulnerability or cybersecurity gap assessment. While this review will ensure companies have the basics covered and enable them to secure insurance, it could also result in lower premiums.

If nothing else, these vulnerability assessments can help establish baseline business best practices, such as ransomware training and protocols for phishing scams. These protocols can help identify vulnerabilities before a bad actor exploits them.

Sadly, the biggest threat is also a company’s biggest asset: its employees. Unprepared employees are often an organization’s most significant vulnerability. However, prepared employees can help play a solid defense.

Yes, cyber insurance is an added cost. While companies may be tempted to cut expenses wherever possible amid rising costs in all aspects of operations, cyber insurance shouldn’t be one of them. The cost of a policy pales compared to the cost of an attack.

The cost outweighs the risk.

Nearly three-quarters of companies suffering an attack (71% of businesses in the United States, according to Hiscox) have paid a ransom when targeted. The cost of a ransom could force many businesses to close their doors for good.

No one should automatically bake that cost into their annual budgets, especially when there is an opportunity to turn the tide and bolster their defensive posture.

The Hiscox Cyber Readiness Report 2021 revealed that less than one-third of companies have a stand-alone cyber insurance policy. Given the size and severity of the threat, it is hard to believe the number isn’t significantly higher.

Many companies still mistakenly believe they can fly under the radar, perhaps thinking they aren’t high profile enough for an attack. While massive cyberattacks make headlines, many smaller ones do not. The harsh reality is that some companies won’t realize they have fallen victim to an attack until it is too late.

When securing a cyber insurance policy, businesses must first understand what they need to protect—such as customer data, medical records or financial information. Buying the right policy requires companies to understand their potential shortcomings before evaluating whether the policy protects them.

A risk assessment is crucial to understanding.

Once they have this baseline information, they should examine the policy to understand what it covers—and, more importantly, what it doesn’t cover. For example, are there select risks that aren’t covered, how does the policy define a security event, and does human error or identity theft negate coverage?

On top of choosing an insurance policy, companies should keep their eyes open for risks on the horizon, and leaders should be prepared to communicate with their teams about their roles. Today, everyone plays a role in a company’s defense.

All employees should understand present cyber risks and why it’s vital that they take safety measures seriously. When it comes to the specific safety measures a company puts in place, leaders should ensure employees understand the procedures and buy into the process.

Since the best offense is a good defense, companies should start their preparations today. If you’re not, what are you waiting for?

employee claim being discussed between two women

how EPLI can protect your business

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For many business owners, the prospect of a lawsuit by a disgruntled former employee looms like a shadow in the background. If there’s one thing you can use to prevent that, it’s this:

Employment Practices Liability Insurance (EPLI).

Well, of course, there are others but if you’re only going to do one thing– get EPLI coverage. Let’s chat about how EPLI can protect your business in the event of an employee lawsuit.

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what is EPLI?

Employment Practices Liability Insurance, or EPLI, is insurance that “provides coverage to employers against claims made by employees.”

Policies typically extend coverage to the following:

  • Wrongful Termination
  • Sexual Harassment
  • Wage-Related Claims
  • Claims of Unequal or Unfair Pay
  • Discrimination Claims (i.e. age, race, gender, sexual orientation)
  • Third-Party Claims

Read on for three tips to avoid employment practice issues.

who needs EPLI?

Although some industries are more prone to these types of claims than others, the most common industries to have EPLI claims filed against them include:

  • Construction
  • Healthcare
  • Professional services
  • Restaurant and food services
  • Retail, and
  • Manufacturing

how can EPLI protect your business?

EPLI helps protect your business from financial devastation.

Employee claims—whether the employee is currently or had been previously employed—can be very expensive; and even detrimental to small businesses.

EPLI helps cover the financial costs associated with legal action. Attorney fees and settlement costs are reimbursed by the policy, which means your business does not have the unexpected financial burden of paying off employee claim-related legal fees.

turn to benchmark commercial insurance

Don’t know whether you have EPLI coverage or the quality of it? Our team at benchmark commercial insurance can help.   

We’ll review your coverage and give you recommendations free of charge. No hard sell, just insights. 

For those who want to learn more, including if their business needs EPLI coverage, read our article “employment practices liability insurance — do you need it?”

man handing someone a pair of housekeys

homeowners are underinsured: what can you do?

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Did you know millions of homeowners across the United States are underinsured? However, they often don’t know this until it’s too late.

As a homeowner, the consequences of your home being underinsured can be detrimental. Even so, according to Nationwide, about two out of every three homes in America are underinsured; meaning, millions of American homeowners are at risk of significant financial loss should a disaster ever affect their home.

As a homeowner, how can you make sure your property is adequately insured?

Let’s discuss.

underinsurance today

Underinsurance is a nationally recognized problem today—and is only getting worse due to rising inflation and increased building costs.

To illustrate, a study showed that over two-thirds of houses in the 2021 Marshall Fire near Boulder, Colorado, were underinsured from between $98,967 and $242,670 and therefore, deemed total losses.

So, what can you do to avoid being underinsured as a homeowner?

how to avoid underinsurance

Luckily, underinsurance can be prevented. Here are a few tips that homeowners can take to avoid underinsurance.

ensure your policy is updated

Have you completed any home renovation or remodel projects recently? If so, be sure to notify your insurance company. Usually, your coverage will need to be adjusted to adequately protect your home.

In fact, according to the Independent Insurance Agents and Brokers of America, one in four projects increases the value of a home by more than 25%. (Yes, we said 25%!)

PS: And don’t limit these updates to only big projects! You should notify your insurance company if you decide to add a deck, pool, trampoline, woodstove, or even a dog to your family! Doing so can help ensure you won’t pay for damages or injuries from these new features.

avoid home insurance coverage minimums

Lenders require homeowners with mortgages to carry a certain minimum amount of homeowners insurance coverage.

This minimum level of coverage typically sits at about $100,000; however, experts recommend three times this amount. Wow! 

evaluate your exclusions and endorsements

Exclusions and endorsements illustrate the parts of your policy that either give or take away coverage.

keep track of your personal property

Homeowners’ policies typically cover a percentage of one’s personal property.

Take inventory of your personal property periodically. If the value of your personal items exceeds your coverage limit, we’d recommend purchasing additional coverage (called an endorsement or rider).

Today, it is so simple to use your cell phone to take an interior home video. Don’t be shy. Open the drawers, cupboards, and closets. Get it all on video.

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get in touch with our team at benchmark commercial insurance

These steps are just the tip of the iceberg in terms of ensuring your home is properly insured. It can be difficult and even overwhelming to do this all yourself, which is why our team at benchmark commercial insurance is here to help.

Reach out to our team today to see if your home is underinsured. Then, for business owners, continue reading to find out how to insure your business.

california wildfire flames sunset

california’s fire zones: what they mean for commercial insurance

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Fire, especially in California, is a natural disaster that commercial property owners must factor into their insurance costs. In fact, research shows that “California is the most wildfire-prone state in the United States… account[ing] for roughly 31% of all acres burned due to wildland fires in the U.S.”

This considered, it’s important to discuss California’s fire zones and what they mean for commercial insurance. Let’s dive in.

what are fire zones?

First off, what is a fire zone? According to the Office of the State Fire Marshal (OSFM), “California law requires CAL FIRE to identify areas [fire zones] based on the severity of fire hazard that is expected to prevail there.”

These fire zones are ranked based on increasing fire hazard as either:

  • Medium
  • High
  • Or, very high

The way in which each area is ranked is based on a number of factors, including fire history, vegetation, flame length, blowing embers, terrain, and weather.

california fire zones

California is known for being prone to fire, which is not good if you’re a commercial property owner.

Luckily, you can assess your risk by using the California Fire Hazard Zones map, courtesy of OSFM.

when is fire season?

Peak fire season in California differs based on your location, for example, if you’re in NorCal or SoCal.

Northern California: Peak fire season begins in the early summer (June to July) and ends in late fall.

Southern California: Peak fire season begins in late spring (May to June) and ends in fall.

fire season is getting longer

Fire season is typically deemed “over” after the first rainfall of fall or winter. Interestingly, however, the season is longer than it used to be due to rising global temperatures. In fact, the United States Forest Service (USFS) estimated in 2015 that fire season had already gotten about two-and-a-half months longer than in the 1970s due to climate change.

what do I need to look at to stay protected?

There are two things you need to take a look at to ensure your commercial property is protected during fire season.

your fire insurance policy!

Fire insurance is very important for any commercial property owner or investor—especially considering the consequences of not having adequate coverage.

Fire insurance is “a form of property insurance that covers damage and losses caused by fire.” While most homeowners’ policies come with some form of fire protection, additional coverage is often required. You must be sure these investments are fully insured without umbrellas so that the total limits of liability exceed your property assets.

Fire insurance is especially important for individuals who own investment properties. The number of investment properties you own could determine whether or not you’re able to use personal lines of insurance to cover fire-related issues.

your risk mitigation strategy

Today, insurers are sticklers about whom they will cover (and rightfully so considering the damage fire can have on commercial property).

Underwriters often now require businesses in high-risk areas to ​​take certain measures to protect their property against fire. These measures might include:

  • Creating defensible space by carefully selecting your landscaping vegetation
  • Building with only non-combustible building materials
  • Routine cleaning and maintenance of dried vegetation
  • Ensuring you have clear access to a reliable water supply

For business owners who are interested, read on to find out how much you should pay to insure your business.

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