From our One Man/Woman Artisan and Contractor Policyholder to our Large Multi-Million Dollar Company Clients, the world of business insurance never ceases to amaze us and never ceases to surprise our clients. We are very excited to help every business in the area find out exactly how their policies work to their benefit.
These are some of the items that first come to mind and they are only a small portion of items to look for when shopping for Business insurance.
One of the primary items business owners need to know is that for the most part business policies are paid in full. There are companies that will set up payment plans, and if not the agency will generally have agreements with finance companies to help facilitate the insurance transaction.
MINIMUM EARNED PREMIUMS: A very important thing to know is “Minimum Earned Premium”. This is generally the smallest amount of money a company is walling to accept for writing a business insurance policy. Minimum Earned Premiums are generally speaking, set to make sure and cover any expenses for writing the policy and to make sure they are solvent to pay immediate claims. This also helps by discouraging people from simply taking policies out to acquire certificates of insurance needed, then cancelling policies shortly after. If a policy is cancelled the company who has a Minimum Earned Premium would return only the portion not used. This is generally called. The Unearned Premium.
Minimize Your Business Risks
- Premises and Operations
- A customer at the store you own trips over a fixture and sustains a significant injury from the fall. Bills for the hospital visits are submitted to you for payment Business Liability Insurance can cover these charges, as well as the business owner, should he be sued by the customer for negligence.
Products and Completed Operations
The deck you built a year ago was flawed, causing a new building owner fiscal disaster. A legal notice appears in the mail informing you of a lawsuit. The case goes to court and your former client wins. Business Liability insurance can handle the defense costs and, if it comes to it, the legal damages for which the policyholder is responsible.
Cyber Liability and Data Breach
You don’t know why or how, but your computer system has been hacked. And now all your confidential business and customer data could be online, free to trade and impersonate. The least of your worries is finding the source of the data breach and repairing exposed computers. Your focus is now on damage control and possibly recovering stolen data. Fortunately, your Cyber Liability insurance coverage can help provide you with legal and forensic assistance, as well as free data security risk management services for your customers.
Employment Practices Liability
If you’ve been in business for a few years or operate in an industry with high turnover rates, you’ve likely hired many employees, whether temporary or full-time. The truth of the matter is that any of these employees can bring legal action against your business at any time. Employment Practices Liability insurance can help cover your business entity, directors, officers and employees if you are accused of wrongful termination, harassment, discrimination, and other employment-related offenses.
Where You Do Business
- Building Coverage
You find success in your store, office, factory, and/or other locations. Then a major fire renders your place of business unsafe for you and your employees. Business Property insurance will make certain your damaged building is repaired or rebuilt quickly so you avoid losing income and preserve both the equity and your future.
Business Personal Property Insurance
The loss of any property you own or create for sale affects your bottom line. If a windstorm damages any of these items, Business Property insurance can help you replace everything from computers and inventory to equipment and tools.
Insurance provides coverage to keep your business operating until goods and services are being produced again. This insurance not only replaces lost business income while the office and its contents are being rebuilt and replaced, but it can also cover the operating and payroll expenses necessary to keep you and your business on your feet after a loss. You can even elect Extended Business Income Coverage, which helps replace lost business income for an extended period of time after your business operations resume.
Theft isn’t your only concern
- Employee Dishonesty
- Money and Securities – Inside/Outside
- Money Orders and Counterfeit Paper Currency
- Forgery and Alteration
Companies as well as individuals are realizing the need for Cyber Insurance. Insurance companies specially in the commercial market due to items such as better than usual claim experience, better definition of coverages, trending higher demand and too many insurers and reinsurers chasing the same business, have seen a decline in some target rates.
One area where there seems to be some consistency in premium increases is the area of commercial lines cyber insurance, and actuaries are taking a closer look.
What is cyber insurance?
Cyber insurance is that area of the insurance market that covers an insured in the event of data breach. Intentional of accidentally. It can cover the actual financial losses, business interruption and anything else an underwriter may deem necessary to put in the policy, such as defense or investigations.
How much is Cyber Insurance? Right now, cyber risk analysis is a difficult task for it is impossible to address all challenges in the short term. Actuaries that are trying to price the product suggest a kind of variable science. cyber insurance is not necessarily a “New Thing”. One of the biggest misconceptions about cyber insurance is that it’s a new specialty area in the industry. The truth is that cyber planning remedies date back to the late 1990’s.
It first began from network liability to privacy and data breaches in the 2000s. Due to the fact that data breaches in the past few years have increased rapidly; the insurance industry has had the opportunity to fill a need and cover more clients.
According to numbers given by Verizon in April of 2015, cyber incidents can be broken down into the following categories:
Miscellaneous errors 29.4%
Insider misuse 20.6%
Physical theft/loss 15.3%
Web application attacks 4.1%
Denial of service 3.9%
Cyber espionage 0.8%
Point-of-sale intrusions 0.7%
Payment card skimmers 0.1%
What industries are affected?
Health care 21%
Financial services 14%
Cyber insurance is surely expected to be an even bigger topic as time goes on. While the industry is anticipating high premium growth, underwriters are still working on improving, to sustain the claims that will come.
Although of Insurance carriers such as AIG, ACE Chubb, Zurich and Beazley are writing it, some insureds are looking to buy more cyber insurance than current insurers of the business are willing to write. Leaving an opportunity for additional insurers to try to get into the market. Insurance companies must consider other correlations of potential cyber-related events that may not be visible in the limited historical data. This effect could be disastrous to and insurance company.
It is important that first-time cyber insurance buyers understand what they’re purchasing, and what to look for and avoid when they purchase a cyber insurance policy. These policies can be very complex and no tow policies are the same.
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