Posted on March 03, 2016
The past 12 months have seen a rise in the incidence of crippling data breaches. Yet relatively few get any notable media coverage. Strong examples of cyber vulnerability include:
- Records of 80 million customers from Anthem, the U.S. health insurance broker
- Background checks of 22 million federal employees from the Office of Personnel Management
- Tax returns of 100,000 Americans from the Internal Revenue Service, including sensitive financial information and Social Security data
In the face of this increasing threat posed by cyber attacks, the National Association of Insurance Commissioners (NAIC) Cyber Security Task Force adopted a “Cyber Security Bill of Rights”. The NAIC declares that insurance consumers have the right to know the types of personal information collected by insurance companies and to expect that insurance companies will have privacy policies posted on their websites. Further, consumers have a right to be promptly notified in the event of a breach, and provided with steps they can take to protect themselves from identity theft or fraud.
As increasing amounts of sensitive customer data are stored in computers (especially the cloud), cyber security and liability grow ever more relevant to the ongoing success of your organization. Contact us to learn more.
Posted on February 04, 2016
Liability insurance plays a crucial role in protecting businesses from financial loss due to claims against you or your employees. Commercial liability insurance can also be called business liability or general liability insurance, and covers a wide variety of potential claims. These generally cover:
- Damage to property
- Personal injury
- Employee injury
- Legal defense and judgments
- And can also include liquor liability, contract law, and more
Even though commercial liability insurance is not required by law in many states, it’s a prudent investment for most business owners. Lawsuit abuse is on the rise in many areas around the country, making liability an increasingly pressing matter. To provide some context, small businesses (on average) can pay close to 10% of their annual income to settle a legal dispute – crushing their bottom line.
Many small business owners are not sure how much liability insurance they should buy. Each situation is unique and should be assessed for its risk and exposure to the public. As a general rule, the amount of liability insurance should be proportionate to the type of business you operate or amount of goods produced. A good rule of thumb for most small businesses is between $500,000 and $1 million. If you own a restaurant or retail business you may need additional coverage.