Commercial Insurance – Page 11 – Setnor Byer Insurance & Risk

Did You Remember to Insure the Business Part of Your Home-Based Business?

They say home is where the heart is or where you hang your hat. According to the U.S. Census Bureau, it’s also where many of us work and run our businesses. People work very hard to make their home-based business a success, but for some reason (the comforts of home?), many overlook the fact that their home-based business is actually a business. This is particularly true when it comes to insurance.

A survey conducted by the Independent Insurance Agents & Brokers of America found that nearly 60 percent of home-based businesses did not have business insurance coverage. Nearly 40 percent thought their business was covered by their non-business insurance. Nearly 30 percent believed their business was too small to insure. As a result, these home-based businesses were vulnerable to potentially substantial uninsured losses.

Owners of home-based businesses often assume that the insurance covering their home will also cover their business. This isn’t true. Standard homeowners’ insurance policies are not designed to cover the risks of operating a business. They typically have business-related exclusions and limitations that leave home-based businesses with little, if any, protection.

For example, standard homeowners’ policy often cover property used primarily for business purposes, but the amount of coverage is very low, typically $2,500. Take a minute to calculate how much your business property costs. Is $2,500 enough to cover everything? Probably not.

An even bigger risk is the liability exposure created by home-based businesses. What happens if a client falls in your home or if someone is injured by the product or service you provide? Standard homeowners’ policies have exclusions for business-related activities, so there would be no coverage for what could potentially be substantial liability.

Owners of home-based businesses cannot rely on non-business insurance, like their homeowners’ or personal automobile insurance, for protection. Business risks require business insurance. Though insurance needs usually depend on business operations, there a few types of coverage that most home-based businesses need, including:

Property: Protects the value of business property from loss due to various perils, like theft and fire. Limits must be sufficient to cover all business property.

General Liability: Protects against third-party claims for personal injury and property damage arising out of business operations. Products liability coverage is necessary if goods are manufactured or sold.

Commercial Auto : Protects against claims arising out of the use of a vehicle for business purposes. Depending on the operations, hired and non-owned coverage may also be necessary.

Professional Liability (Errors &Omissions): Protects professionals (attorneys, accountants, etc.) and quasi-professionals (real estate brokers, consultants, etc.) against claims that they erroneously performed or failed to perform their services .

Workers’ Compensation: Provides medical and lost wage benefits to employees injured on the job. State law typically dictates whether a business is required to carry workers’ compensation insurance.

Home-based businesses may need more specific types of insurance, like employment practices liability or cyber liability insurance. Insurance needs vary with business operations, so there isn’t a one-size-fits-all approach for insuring a home-based business. And, depending on the circumstances, coverage may be obtained by adding business-specific endorsements to a homeowners’ policy, by purchasing a Business Owners Policy (BOP) or by purchasing multiple stand-alone commercial policies.

The lack of uniformity and numerous options can make it difficult to identify and obtain the right insurance for a home-based business. An experienced insurance agent is usually needed to identify specific business risks and develop an effective yet cost efficient insurance program.

Please contact us if you have questions or would like more information about insuring your home-based business.

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Did You Get the Text About Distracted Driving Awareness Month?

Did you know that April is National Distracted Driving Awareness Month? If not, it’s time to take notice. According to the National Highway Traffic Safety Administration, approximately 10% of crash fatalities and 18% of crash injuries involve distracted drivers. The consequences of distracted driving can be severe, and the problem only seems to be getting worse.

Distracted driving is any activity that could divert a person’s attention away from the primary task of driving. There are three general categories of driver distraction, all of which can endanger the safety of drivers, passengers and pedestrians:

Visual: Taking your eyes off the road.
Manual: Taking your hands off the steering wheel.
Cognitive: Thinking about anything other than driving.

Common driving distractions include:

Texting;
Using a smartphone;
Eating or drinking;
Talking to passengers;
Grooming;
Reading (maps, emails, etc.);
Using a navigation system;
Watching a video; and
Adjusting radios and CD/MP3 players.

Though all distractions can be dangerous, texting is by far the most alarming because it requires a driver’s visual, manual and cognitive attention. Unfortunately, the number of drivers engaging in this behavior has been steadily increasing, even though nearly every state has made it illegal.

14 states have primary enforcement laws prohibiting the use of hand-held cell phones while driving, which allow an officer to cite a driver for using a hand-held phone without any other traffic offense taking place.
46 states ban text messaging for all drivers, most through primary enforcement laws. A few states, like Florida, have secondary enforcement laws, so drivers cannot be stopped for texting unless another infraction, such as weaving or speeding, is also observed.
38 states ban cell phone use by novice drivers.
We’re past the point of denying the consequences of distracted driving, particularly texting while driving. We know too much. Then why are we seeing more and more drivers focusing on their phones instead of the road?
Maybe it’s not enough to simply know the consequences of distracted driving. We must also truly understand them. If you don’t think there is a difference between the two, talk to someone who survived a crash caused by a distracted driver or the survivors of someone who didn’t.
It’s time for us to change our distracted driving ways. National Distracted Driving Awareness Month makes it the perfect time to start a new habit of avoiding (or at least reducing) driving distractions. It’s particularly important for parents to be vigilant with their driving-aged children. Young drivers and their young passengers need to hear about the dangers of distracted driving early and often.

Please contact us if you would like more information about protecting against the damage caused by distracted drivers.

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Using the Benefits of Representations and Warranties Insurance When Buying or Selling a Business

Deals to buy or sell a business typically include statements of fact by the seller about the business. These representations and warranties are then combined with indemnification provisions to allocate risks and liabilities between the parties. Negotiating representations and warranties can be challenging, and deals often fall apart because the parties cannot reach an agreement. Representations and Warranties Insurance (RWI) can simplify negotiations and possibly save the deal.

RWI protects against unintentional and unknown breaches of a seller’s contractual representations and warranties. Though RWI is not a new insurance product, it’s increasingly being used by both buyers and sellers to shift liability to insurers for a fixed cost.

These policies cover many of a seller’s standard representations and warranties, such as statements about:

Capitalization and debt;

Accuracy of financial statements;

Title to real, personal and intellectual property;

Tax matters;

Accounts receivable/payable and inventory;

Employee benefits and compensation; and

Compliance with laws and regulations.

In the past, RWI was typically reserved for buyers, but today RWI is used by both buyers and sellers. A ‘buy-side’ policy covers a buyer’s losses, including defense costs, due to the seller’s breach of a representation or warranty. A ‘sell-side’ policy covers the seller for defense costs and losses resulting from claims made by the buyer that the seller breached a representation or warranty.

Sellers can use RWI to:

Reduce potential liability for future representation and warranty claims;

Lock in their return on investment;

Cleanly exit a business or industry;

Eliminate the need for purchase price escrows or holdbacks;

Retain, use or distribute all or most of the sale proceeds;

Protect passive sellers; or

Expedite a sale.

Buyers can use RWI to:

Ensure a source of recovery for the seller’s breach of representations and warranties;

Ease concerns created by a sellers’ poor financial condition or other practical considerations that can make it difficult to collect from the seller in the event of a breach, such as sellers that are numerous, geographically dispersed or difficult to locate;

Distinguish its bid and appear more attractive to a seller;

Provide additional time to detect and report problems by extending the duration of a seller’s representations and warranties; or

Protect relationships with sellers who may continue working with buyer after the sale as a key employee or business partner.

Unlike standard general liability and property insurance policies, RWI coverages and exclusions can be relatively complex and can also vary depending on the specific policy form and insurance company. You should consult a reputable insurance agent with experience handling RWI applications and policies.

Please contact us if you would like more information about obtaining Representations and Warranties Insurance coverage.

Additional information is also available in our weekly Risk Management Newsletters.

Business Insurance 101

Insurance is an essential part of running a successful business. Though you don’t have to be an insurance expert, a general understanding of the following business policies and coverages can help identify and fill potential coverage gaps. It can also make you a more informed and better equipped consumer when the time comes to renew your insurance.

Property Insurance

Standard commercial property insurance covers loss or damage to buildings and structures caused by covered perils, such as theft, vandalism and fire. It also covers business property (contents), such as office furnishings, inventory, materials and computers. This coverage can help pay the costs of repairing or replacing property that is damaged or lost due to a covered event.

Since a property loss is likely to force a temporary suspension of operations, businesses should consider adding business interruption (business income) coverage. In the event of a covered loss, business interruption insurance will cover lost revenue and fixed expenses, like rent and utilities, during the suspension of operations. Extra expense coverage is also available to reimburse costs over and above normal operating expenses, like temporary relocation costs.

General Liability Insurance

Every business is vulnerable to claims of harm or damage brought by third parties. Standard commercial general liability insurance protects against liability claims for bodily injury and property damage occurring on the premises or arising out of business operations. Standard policies also cover personal and advertising injury, such as libel, slander and false arrest, and provide limited medical payments coverage for injuries sustained by non-employees.

Professional Liability Insurance

Businesses providing professional services requiring extensive technical knowledge or training must meet minimum standards of professional conduct. However, professional services, like those performed by doctors, lawyers, accountants, architects and engineers, are generally not covered under a standard general liability policy. Professional liability (errors and omissions) insurance is needed to protect against claims that a professional erroneously performed or failed to perform its professional services.

Commercial Automobile Insurance

Many assume that commercial automobile insurance is only necessary if a business owns one or more vehicles. However, if cars, trucks, vans or other vehicles are used or rented for business purposes, or if employees run business errands in their personal cars, commercial automobile insurance, including coverage for hired and non-owned vehicles, is needed to cover bodily injury or property damage resulting from an accident.

Workers Compensation Insurance

Whether a business is required to carry workers’ compensation insurance is typically determined by state law. In Florida, for example, a business in the non-construction industry that employs four or more part-time or full-time employees must obtain workers’ compensation coverage to provide medical and lost wage benefits to employees injured on the job. Even though some states, like Florida, set the premium for workers’ compensation insurance, a business can reduce its rates by maintaining a safe workplace or implementing a qualifying drug-free workplace program.

Flood Insurance

The average commercial flood claim is nearly $90,000, which may explain why approximately 25% of businesses never reopen after a flood. Damage caused by rising flood waters isn’t covered under standard property policies. A separate flood insurance policy is needed to cover direct physical loss to buildings and contents caused by an excess of water on land that normally is dry.

Employment Practices Liability Insurance

In 2014, the Equal Employment Opportunity Commission received 88,778 charges of unlawful discrimination. Unfortunately, employment-related lawsuits are becoming significantly more expensive to defend and resolve. Employment practices liability insurance is needed to protect against claims of discrimination, wrongful termination, harassment and other employment-related issues, like breach of contract.

Umbrella Insurance

An umbrella policy is designed to protect against an unusually high loss by providing coverage over and above other liability insurance policies. In addition to providing excess coverage limits, an umbrella policy can step in after the aggregate limit of an underlying policy is exhausted by the payment of claims. Umbrellas may also cover claims that are not covered by underlying policies.

If you have any questions or would like to learn more about insuring a business, please contact us.

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Should You Be Concerned About Products Liability?

Products liability cases typically make the headlines when a manufacturer is hit with a massive jury award for injuries caused by its defective product. As a result, many believe only large manufacturers need to worry about products liability. However, products liability extends well beyond manufacturers.

If someone is injured by a defective product, everyone involved with that product may have a liability exposure. Products liability generally applies to those engaged in the business of selling or otherwise distributing a product, so those in the distribution chain who sell or distribute a defective product may be held liable. Links in this chain may include a product’s designer, manufacturer, distributor, wholesaler or retailer.

A product is generally considered defective when, at the time of sale or distribution, it contains a manufacturing defect, a design defective, or because of inadequate instructions or warnings.

Manufacturing Defect. The product contains a manufacturing defect that departs from its intended design, despite exercising all possible care when preparing and marketing the product.

Design Defect. A product is defective in design when foreseeable risks of harm could have been reduced or avoided by the adoption of a reasonable alternative design and the omission of the alternative design renders the product not reasonably safe.

Inadequate Instructions or Warnings. A product is defective because of inadequate instructions or warnings when foreseeable risks of harm posed by the product could have been reduced or avoided with reasonable instructions or warnings and the lack of instructions or warnings renders the product not reasonably safe.

One justification for the broad scope of potential liability is the belief that those who profit from the sale or distribution of a product should bear the financial burden of damage caused by a defective product. Needless to say, this financial burden can be immense.

According to the Insurance Information Institute, the average products liability jury award in 2013 was nearly $6.4 million. Moreover, the costs of defending products liability cases are often higher than other types of litigation. For example, in addition to $1.6 billion in products liability losses, insurers spent another $1.2 billion in settlement expenses in 2013, or 75 percent of the losses.

Most businesses would not survive the financial burden created by a defective product without insurance. Products liability insurance protects against financial loss arising out of liability that is incurred when a defective product causes injury or damage. This coverage may be available under a standard commercial general liability insurance policy (often referred to as products-completed operations coverage) or a under a separate policy.

Though sufficient coverage can often be obtained under a standard general liability policy, the amount and availability of products liability coverage depends on various factors, such as the nature of the product. An experienced insurance agent can help you find coverage that best suits your needs.

If you would like more information about obtaining products liability insurance coverage, please contact us.

Is Title Inflation Putting Your Business At Risk?

Title Inflation occurs when superior-sounding job titles are given to non-superior employees. Despite recent trends, title inflation is not new. It was even a topic of conversation in a 1998 episode of Seinfeld.

ELAINE: Do you know how embarrassing this is to someone in my position?

JERRY: (Confused) What’s your position?

ELAINE: I am an associate.

GEORGE: Hey, me too.

WAITRESS (passing their table): Yeah, me too.

While having too many “Vice Presidents of This”, “Chiefs of That” and “Directors of Those” can be comical, it can also be risky. Let’s see what happened in Aleynikov v. Goldman Sachs, a case out of United States Third Circuit Court of Appeals.

This case involves a Goldman Sachs employee who was indicted for stealing computer source code before quitting his job. The employee spent over $2.3 million defending state and federal criminal charges relating to the theft, and, according to the employee, Goldman Sachs was required to cover the costs of his criminal defense. Why would Goldman Sachs possibly have to pay to defend the person who allegedly stole its own source code? Title inflation.

This employee worked as a computer programmer. He did not supervise other employees, did not transact business on behalf of Goldman Sachs and did not have any management or leadership responsibilities. Nevertheless, he was given the title of Vice President in Goldman Sachs equities division, and under its By-Laws, Goldman Sachs is required to indemnify officers for their legal expenses. (Indemnification provisions like this are commonly found in corporate By-Laws.)

The court considered a number of factors to determine whether the employee, as a Vice President, is entitled to indemnification under Goldman Sachs’ By-Laws. For example, the court noted that Goldman Sachs employs tens of thousands of employees and that approximately one-third of them hold the title of Vice President. Despite the apparent absurdity of the employee’s position, the court ruled that additional facts are needed before a final decision can be made. In other words, Goldman Sachs, the victim, still faces the possibility of having to pay the defense costs for its former employee, the perpetrator.

Though this case is extreme, it highlights a significant risk associated with title inflation. Employees must be given titles that are consistent with their functions and responsibilities because employees with artificially inflated titles, even those without criminal intentions, can create significant risks and expose businesses to substantial liability.

Additional protection can be obtained with a Directors and Officers Liability insurance policy. These policies generally protect directors and officers against monetary damages resulting from lawsuits or claims resulting from actions taken in their official capacity. While these policies do not cover all potential liabilities, such as those resulting from fraudulent or intentional acts, or those that caused by someone who is not entitled to coverage under the policy (perhaps due to title inflation?), they can provide a much needed security blanket.

Since variations among these policies can be significant, it is important to select a policy form which addresses any particular risks with appropriate coverage terms. When shopping for a Directors and Officers insurance policy, it is important to use the services of an insurance agent with substantial expertise in this field.

If you would like more information about obtaining the right insurance coverage for your business, please contact us.

Office Holiday Parties: Revel without Regret

Many employers consider a company-wide holiday celebration an excellent opportunity for employees to mingle socially and get to know one another better. It’s also a chance for senior management to interact with employees they rarely see throughout the year. Though holiday parties can create a positive work environment, increase employee morale and promote teamwork, they can also expose employers to a number of potentially significant risks.

Perhaps the most significant risks involve alcohol. What happens if an employee becomes intoxicated and causes damage to something or someone? Though liability is determined on a case-by-case basis, employers may face a greater chance of being held responsible if:

Attendance is, or is perceived to be, mandatory (e.g., everybody knows that being seen by the Vice President will enhance one’s chances of a promotion);
The employer pays for or provides the alcohol; or
The employer conducts business during the holiday party.

Employers can take steps to reduce their potential liability, such as:

Collect car keys from all who drink. Toward the close of the party, assign designated drivers or call taxis for anyone who is too impaired to drive. If the party is in a hotel, reserve a block of rooms for the inebriated to spend the night.
Appoint someone in a position of authority to monitor alcohol consumption; including making certain that no alcohol is served to minors.
Serve a limited amount of alcohol, controlled through “drink coupons.” (i.e., two drinks per person). Close the bar once dinner begins.
Send a memo to all employees prior to the party stating clearly that a) employees who arrive inebriated will not be allowed in; b) employees cannot bring their own alcohol; c) excessive drinking will not be tolerated; and d) intoxication and inappropriate behavior at the party will be grounds for discipline.
Do not permit supervisors or managers to buy alcoholic beverages for employees.
Hold the party at an off-site location and use professional bartenders to serve and monitor alcohol consumption.

There are other risks employers should consider when planning and holding the annual office holiday party, such as:

Discrimination and Harassment: Lines are often blurred during an office party, so they are often crossed. Conduct that is inappropriate at work may be considered appropriate at a party, such as engaging in intimate conversations or acts, giving a racy gift or telling an off-color joke. Employers may be held liable for unlawful harassment or discrimination that takes place during a holiday party, even if it’s off-premises and off-the-clock. Consider redistribution of the sexual harassment policy, and remind employees that a holiday party is no excuse for inappropriate behavior, which will not be tolerated.

Premises Liability: Employees are often allowed to bring spouses and significant others to the office holiday party. Every ‘plus one’ accompanied by an employee is a potential slip-and-fall victim. Employers must make sure the workplace is safe before the party and keep it safe during the party.

Workers’ Compensation: Employees are typically covered by workers’ compensation if they are injured in the course and scope of their employment. Though getting hurt at a holiday party wouldn’t seem to be work-related, an employee may be covered by workers’ compensation if attendance at the party is explicitly or implicitly required (or ‘encouraged’). Tell employees the holiday party is purely a voluntary social event, and mean it.

Employers should review their insurance policies before the party to make sure they are covered in the event something happens during the holiday party. General liability, employment practices liability and workers’ compensation insurance may cover some of the risks created by the office holiday party. However, other risks may require additional insurance coverage, such as a policy that covers one-time events, including alcohol-related liability, which may be available for a small additional premium.

If you would like more information about how Setnor Byer Insurance & Risk can help protect your business during the holidays and year round, please contact us.

How Can Safety Reduce Workers’ Compensation Insurance Premiums?

Workers’ compensation insurance provides indemnity and medical benefits to employees injured on the job. Many states, including Florida, set the premiums for workers’ compensation insurance, so shopping around isn’t the way to save money. However, employers can reduce their workers’ compensation insurance premiums by maintaining a safe workplace

Insurance companies prefer safe workplaces because there are presumably fewer claims to pay. They encourage employers to maintain a safe workplace by using experience modification ratings to adjust premiums. Employers with fewer claims are rewarded with premium credits, and employers with more claims may face increased premiums.

The experience modification rating, or experience mod, is designed to tailor the final premium to an employer’s actual claims experience. An employer’s actual workers’ compensation claims experience, typically over a three year period, is compared to other employers operating in the same type of business with a similar number of employees.

If an employer’s claims experience is consistent with the industry average, the experience mod is 1.0, which when multiplied by the base premium, will not increase or decrease the premium. If the claims experience is 25% better than the industry average, the experience mod will be .75, which when multiplied by the base premium, will decrease the premium by 25%. Alternatively, if the claims experience is 25% worse, the experience mod will be 1.25, which will increase the premium by 25%.

The experience mod gives more weight to accident frequency than to accident severity. In other words, an employer with one loss totaling $100,000 will have a better experience mod than an employer with 10 losses totaling $100,000. Since any single injury could have astronomical costs, an employer with a higher frequency of small claims is considered a greater risk than an employer with a single, expensive claim.

Medical-only claims do impact the experience modification as much as indemnity claims, so employers are not necessarily penalized when they occur. However, the existence of open or unresolved claims can negatively impact the experience mod, so employers benefit from getting claims resolved and closed.

Insurers may offer dividend payments to employers with few or no claims. Dividends, which are generally reserved for the most attractive risks, are usually based on a sliding scale wherein the amount of the dividend decreases as the number of claims increases. Rather than focus on the most generous dividend percentage, employers should compare dividend percentages that comport with their specific claims history.

Employers can reduce their workers’ compensation insurance premiums by taking advantage of the experience modification rating system. Though it requires a commitment to workplace safety and loss control, the savings could be significant. Given the complexity, employers should work with an insurance agent who knows about the experience modification rating system and available dividend plans, and who can ensure claims are treated appropriately and resolved quickly.

If you would like more information about workers’ compensation insurance or how Setnor Byer Insurance & Risk can help control your workers’ compensation insurance costs, please contact us.

Understanding Business Insurance: What is BOP?

Many businesses take a piecemeal approach to buying insurance. One policy for property insurance, another for liability insurance, and so on. Unfortunately, this approach can be difficult and time consuming, particularly for small- and medium-sized businesses. For these businesses, a Business Owners Policy, a BOP, may be an attractive alternative.

A BOP is a pre-packaged bundle of coverages that insurance companies offer to eligible small- and medium-sized businesses. BOPs are designed to provide a number of essential insurance coverages in a convenient and cost effective manner. BOPs typically provide:

Property insurance to cover damage to buildings and contents;
Business income (business interruption) insurance to cover the loss of income resulting from a covered loss that Disrupts business operations; and
Liability insurance to protect against liability claims for bodily injury and property damage occurring on a business’s premises or arising out of its operations.

Depending on the insurance company, additional coverages may be included in a BOP, or added for an additional premium, such as:

Cyber Liability
Employment Practices Liability
Valuable Papers and Records
Personal and Advertising Liability
Liquor Liability
Equipment Breakdown
Sale and Disposal Liability coverage for self storage facilities

Though BOP eligibility requirements can vary significantly among insurance companies, BOPs are typically limited to small- and medium-sized businesses, which are generally those with fewer than 100 employees and annual revenues of less than $5 million. BOPs may also not be available to businesses operating in specific industries or those with highly specialized or high-risk operations.

Alternatively, BOPs may not be the solution for some businesses, even those that are eligible for them. For example, some businesses may require higher limits or broader coverage forms that are not available in a BOP. There are also a number of coverages that BOPs do not provide, such as workers compensation, commercial automobile and professional liability insurance. Even with a BOP, additional insurance policies may still be necessary.

Since BOPs are customized insurance products, it is important to note that coverage options and features (limits, exclusions, etc.) can vary significantly among insurers. Unfortunately, the lack of uniform eligibility requirements, coverage options and policy features makes it difficult to understand and compare the various BOP options that may be available. An experienced insurance agent should be consulted throughout the process.

If you would like to learn more about BOPs or the various options that may be available to insure your business, contact us.

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Every Business Should be Worried about Cyber Liability

Regardless of industry, cyber attacks and data breaches expose businesses to potentially enormous losses and liabilities. According to a report by the Insurance Information Institute (III), the potential economic fallout from the cyber threat cannot be underestimated, particularly because the number of publicly disclosed data breaches soared from 449 in 2012 to 614 in 2013. This is likely why cyber risk cracked the top 10 list of global business risks in 2014.

According to the III report:

The majority of data breaches affected the medical/healthcare industry (43.8%) and business organizations (34.4%).
Business organizations accounted for the majority of records exposed by data breaches in 2013 (84%).
A report by PWC found that cyber crimes are considered a high-level threat.
Cyber attacks have become more frequent and increasingly costly for companies to resolve.
The average annualized cost of cyber crime is estimated to be $11.6 million per year.
Denial of service is the costliest cyber crime, followed by malicious insiders and web-based attacks.
The average time to resolve a cyber attack is 32 days, with an average cost of just over $1 million during this 32-day period.
Malicious or criminal attacks, such as malware infections, criminal insiders, phishing/social engineering and SQL injections, cause 42% of data breaches, followed by human error (30%) and system glitches (29%).
U.S. organizations have the highest lost business costs at an average of $3.3 million.
Businesses may be exposed to even greater risks from new technologies, such as cloud computing, which uses a network of remote servers over the Internet to store, manage and process data, rather than a local server.

The III report notes that upon experiencing a data breach, many businesses turn to their insurance policies to cover their loss. Unfortunately, many of these losses are not covered by traditional insurance policies. To protect against cyber threats, businesses need specific cyber insurance policies that provide a number of specialized coverages, such as:

Loss/corruption of data
Business income/interruption
Liability coverage (first- and third-party coverage)
Data breach coverage (including costs of complying with statutory notice requirements)
Cyber extortion
Crisis management
Identity theft

Given the complexity of the risk, an experienced insurance agent should be consulted to ensure that adequate coverage is obtained. If you would like to learn more about insuring against data security breaches, contact us.

If you would like to learn more about preventing data security breaches, take our online course Information Risk Management: Strategies for Preventing and Mitigating Information Security Breaches.

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