by Grant Davis | Business Insurance, Cyber Liability, GDI Insurance, Insurance, Risk Management
Ransomware Insurance and Cyber Insurance
With ransomware attacks on the rise, the role of insurance is becoming more robust. And, although ransomware coverage has been traditionally sublimited within cyber policies, stand-alone cyber policies that cover ransomware are becoming more necessary.
In an attempt to find additional coverage for ransomware, many businesses and carriers have been turning to kidnap and ransom (K&R) policies. K&R policies have traditionally been used by organizations to protect their executives, not to protect against ransomware. Because K&R policies were not designed for ransomware, they may only provide a quick fix. K&R policies tend to be less suitable for ransomware than cyber policies and payouts tend to be lower.
Policy Definitions, Terms and Conditions
Since cyber insurance isn’t standardized, organizations should review all policy language with a broker before choosing a plan that effectively covers ransomware. Policies can vary significantly in their language and coverage options, so insurance experts recommend policies that—at the very least—provide coverage for extortion demands and payments as well as lost income resulting from an attack.
Organizations should also take a close look at the following definitions, terms and conditions when choosing a policy:
- Sublimits and deductibles—Most policies set a sublimit for covering ransomware. It is important to review this limit carefully, considering that demands may start on the low side, but can increase quickly. Also, since making a ransom payment may make organizations a target for subsequent ransom demands within the policy year, the deductible amount should reflect that risk.
- Payment terms—Most policies require prior written consent before the insured can pay any ransom. This can result in payment delays and increased demands by the hackers. If an organization pays a ransom in order to resume business, without prior written consent by the insurer, there’s a chance that it may not be reimbursed. Therefore, organizations need to be comfortable with a policy’s terms in order to avoid compromising coverage.
- Definition of extortion—It is important for organizations to fully understand and agree with their insurance company’s definition of extortion, since the definition dictates the trigger for coverage. For example, although hackers may intend to sell or misuse information, the ransom demand may only involve a countdown timer and demand for money. While the combination of the two may seem like an obvious threat to the insured, a carrier could possibly deny coverage on the basis that there was no explicit threat to sell or misuse information—all because of its unique definition of extortion.
What to Look for in a Ransomware Insurance Policy
Companies should look for ransomware coverage that uses broad terminology and protects against a wide range of threats, including threats to do the following:
- Access, sell, disclose or misuse data stored on your network, including digital assets.
- Alter, damage, or destroy software or programs.
- Introduce malicious software, including viruses and self-propagating code.
- Impair or restrict access. Look for policies with broad terms like, “threats to disrupt business operations.”
- Impersonate the insured in order to gather protected information from its clients, also known as pharming or phishing.
- Use your network to transmit malware.
- Deface or interfere with your company’s website.
The Importance of Risk Management
Ransomware insurance is most effective when coupled with an effective risk management program, as there are many components in the fight against cyber crime. Risk managers should work with an insurance broker to review all applicable options before choosing cyber coverage.
California’s Leader in Insurance and Risk Management
As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. With locations across the heart of California’s Central Valley and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business. Contact us today 1-209-634-2929 for your comprehensive business insurance quote!
Contact GDI Insurance Agency, Inc. today 888-991-2929 to learn more about available cyber policies and effective risk management techniques to protect your organization from ransomware attacks.
by Grant Davis | Business Insurance, GDI Insurance, Insurance, Risk Management
Planning for the Worse – Business Interruption or Loss of Income
The reality is 80% of business’s that sustain a major loss at their primary location and are rebuilt and restored by insurance are out of business within 5 years of less! GDI Insurance Agency, Inc. wants to make sure your business is protected with Business Interruption Insurance or Loss of Income insurance.
Statistics show that approximately 25 percent of businesses affected by disasters never reopen their doors. Small business owners and individuals who are self-employed are especially vulnerable to the loss of income that business interruptions can cause. To protect yourself from losses in the event of a forced shutdown, you must purchase adequate business interruption insurance and create a thorough business continuity plan.
Implementation of your business continuity plan means more than simply exercising the plan during an emergency. It means integrating the plan into your company operations, training employees and evaluating the plan.
Amazing?
Not really. In all my years (nearly 38 now) as an insurance broker I have yet to find a company with a real disaster recovery plan that included proper limits for loss of income and extra expense which is business interruption insurance.
Think about your customers. If you can’t fulfill their orders they still need your product or service so they must buy from your competitor. The longer they buy from your competitor the harder it becomes to regain the client. A very vicious circle!
Why Do You Need Business Interruption Insurance
Originally established for the manufacturing industry, Business Interruption Insurance has evolved into an essential risk transfer tool for all industries. Coverage provides resources that aid in recovery and can help get a company back on its feet quickly.
Business Interruption Insurance doesn’t just assist small businesses in meeting payroll and bills during a crisis; according to data from the Institute for Business Home and Safety, 25 percent of businesses never reopen following a disaster or interruption.
For larger businesses, Business Interruption Insurance can provide employees and shareholders peace of mind. Shareholders especially like to know a business’ profits are protected in case of fire, tornado, hurricane or other disaster.
Don’t wait until your business experiences a significant loss to consider this vital business insurance protection. Contact GDI Insurance Agency, Inc. at 209-634-2929 to review how this type of coverage can fit into your overall business insurance portfolio.
Take a look at the video on this page, then:
Drop me an email or call my office 888-991-2929 for a copy of these two reports:
1. The white paper I am showing you “The Benefits Of Business Interruption Insurance”
2. A copy of the “Disaster Recovery Planning Guide” in word so you can make it yours!
All free with no obligation or anyone bugging you.
GDI Insurance Agency, Inc. is the right insurance broker for your company if your are serious about insurance cost reduction and staying in business no matter what!
Take a look here to see some of what we offer. It is just the best and right way to protect your company.
We offer this level of protection to all our clients that simple ask us for it!
We have free programs for everything you need for your business to assure you stay in business. We are happy to give it all to you for free. We only ask that you consider us for your insurance needs. Seems like a good deal considering what it would cost to buy all this material. Of course for our clients you also get our help with all this too.
The key to insurance cost reduction is to reduce the risk of having a loss, as well as reducing the size of losses when they happen. This is a key step to assuring your company survives a large loss.
California’s Leader in Insurance and Risk Management
As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. With locations across the heart of California’s Central Valley and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business. Contact us today 1-209-634-2929 for your comprehensive business insurance quote!
by Grant Davis | Business Insurance, Insurance, Workers Compensation
How Does Your Business Handle Claims Management for Workers Compensation Claims?
Having a workers compensation claims management process or “best practices” saves you time, energy, money and stress. Having a plan in place can positively influence on your bottom line.
A Broker at GDI Insurance Agency, Inc. can help you with a Workers Compensation Program. Contact us at 1-888-991-2929.
Workers Compensation Claims Management
- Contact your injured workers early and often. This will let them know that you care about them, which can help keep morale up and encourage their return to full, regular duty.
- Consider unconventional or outside-the-box treatment if it will help an employee recover and return faster.
- If your state allows you to direct or encourage employees to use certain doctors, use doctors who understand your business whenever possible. This will help ensure the best treatment for your employees and hopefully aid in return to work scenarios, keeping claims costs down.
- Integrate strategic wellness programs into your company to help reduce injuries. Understand how chronic conditions, like obesity and diabetes, can affect or cause other injuries. Managing such diseases properly can reduce workers’ compensation claims costs.
- Explain workers’ compensation benefits, programs and expectations during new employee orientation to keep future claims costs down. Make sure employees understand that they will not be punished in any way for making a claim or reporting an injury, and explain the importance of promptly reporting any injury or incident.
- Make return to work a priority across your entire organization – every job should have a return to work provision, and every employee should know about it. Return to work program awareness should not just be the job of human resources or your claims adjuster.
- Keep up to date on laws that impact your workers’ compensation claims. Be sure to know your requirements and responsibilities as an employer and how to address any possible or suspected fraud.
- Keep tabs on what your claims administrator is doing; you should always know what is happening with a claim.
Claims Investigation
- Exercise due diligence when investigating a claim. Beyond speaking to the direct supervisor and the injured employee, interview other witnesses or co-workers that could shed light on the situation.
- After an incident or claim, be sure to investigate early and keep all the information organized. Make sure you gather all appropriate evidence and information so it can be verified later.
- Determine whether the employee was actually working on the date that they claim to have been injured. Discrepancies or falsities happen often, particularly with late claims.
California’s Leader in Workers Compensation Insurance and Risk Management
As one of the fastest growing agencies in California, GDI Insurance Agency, Inc is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. With locations across the heart of California’s Central Valley and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business.
Contact us today 1-209-634-2929 for your California Workers Compensation insurance quote!
by Grant Davis | Business Insurance, Commercial Auto Insurance, GDI Insurance, Insurance
Protect Your Employee Drivers with Commercial Auto Insurance
Commercial auto insurance is imperative if employees are driving on behalf of your business, regardless of who owns the vehicle. Here’s what you need to know about insuring business vehicles and how to save on your commercial auto insurance.
If your company name is on the vehicle title, you’ll need to buy commercial auto insurance.
Commercial auto insurance is typically much more expensive than personal auto insurance. Even though commercial auto insurance premiums are more expensive, commercial insurance offers more coverage. Even during the current driver shortage, onboarding a single inexperienced or incompetent employee can expose you to costly fines, crashes and a tarnished reputation.
These factors will influence the price of your commercial auto insurance:
– The number of auto insurance claims your company has had in the past.
– The motor vehicle report—or driving record—for all drivers within the company.
– The age of the drivers, this is especially important!
– The safety of the location where you keep the vehicle, such as a garage vs. on the street.
– The amount of security you have in place, which could include anti-theft devices.
Customize Your Commercial Auto Insurance
GDI Insurance Agency, Inc. provides exactly the expertise you need. We have the right commercial auto insurance plan for your commercial automobiles AND we can deliver the strategies, tools and resources that will help you manage your transportation and fleet industry risks, control workers’ compensation claim costs, advance safety and boost employee morale.
How To Create Driver Standards for Employees
When it comes to your business, keeping your employees safe is a top priority. It’s why you have workplace safety regulations, and if the unexpected happen, you have business insurance.
What About Business Vehicles?
If your business requires your employees to operate a motor vehicle at all, it’s important to create a plan for ensuring their safety. Read these tips for developing driver standards to keep both your employees — and the other drivers on the road — as safe as possible.
The best way to make sure you’re employing the most qualified drivers is to perform comprehensive pre-employment screenings in accordance with DOT and FMCSA regulations.
This toolkit includes forms, checklists and other materials that you can use to onboard a new driver and ensure that all applicable records are in order. Your business should make efforts to check for any state and local pre-employment requirements, criminal histories and other relevant information to see if candidates are the right fit.
Here are Tips On Hiring Employee Drivers
Check records. Your prospective employee’s driving history can be a strong indicator of their future driving record, which is why it’s so important to check into it. Department of Motor Vehicle Records are kept on file in every state where your employee holds a driver’s license. These records will show:
- If their license has been revoked
- If their license has been suspended
- If the driver has received any traffic violations
- If the driver has been involved in any traffic-related accidents
To obtain a DMV Record, contacting your state agency or your insurance agent is your best bet. Commercial Driver Hiring and Onboarding Toolkit In order to access a record you will need to know the individual’s name, date of birth, address and driver’s license number.
Mandate Safety Plans
After you check out your prospective employee’s MVR, it’s important to establish guidelines to help determine if they should be considered for a job that will require them to operate a vehicle. For example, guidelines that might disqualify an employee from a driving position might include:
- A driving while intoxicated conviction in the past three years
- Three serious violations, such as reckless driving or following too closely, during the past three years
- Two accidents within the past three years
- License suspension due to traffic violations in the last three years
Keep Tabs On Your Employees
After you go through the necessary background checks and the employee is cleared to start driving, its important to continue evaluating their current driving records on a regular basis. That way, you can verify they still meet your safe driving requirements after they’ve been hired.
Require Experience
If your business requires the use of large passenger vans, it’s important to understand the safety precautions you and your employees can take to keep everyone in the vehicle safe. Remember, only experienced drivers should operate fully loaded vans, and should understand and be familiar with the handling characteristics of these types of vehicles. Youthful drivers are one of the factors that will greatly increase your commercial auto insurance costs.
Risk Management Techniques
One of the best things you can do to control your commercial automobile insurance premiums is implement risk management techniques for controlling the frequency of accidents. Improving your drivers’ performance can make a big difference: A study by the U.S. Department of Transportation revealed that 90 percent of all collisions were due to driver action, attitude and behavior. Making your drivers safer and purchasing dependable vehicles can affect both frequency and severity of accidents, ultimately lowering your premiums. Some steps to take include the following:
- Select good drivers. Conduct background checks and request regular motor vehicle driving records.
- Provide driver safety training on a regular basis, both at hire and as a refresh, ensuring that both new and seasoned employees are properly prepared.
- Train employees on reporting a loss immediately after a crash.
- Monitor drivers to ensure their best performance.
California’s Leader in Insurance and Risk Management
As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. With locations across the heart of California’s Central Valley and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business. Contact us today 1-209-634-2929 for your comprehensive commercial auto insurance quote!
by Grant Davis | Cost Reduction, Insurance, Risk Management
Risk Reduction is Your Key To Lower Insurance Rates
I can’t tell you how many times I am asked how we do it? How do we get our clients discounts even with the same carrier they are already with? It is actually very hard, but simple. Risk Reduction is the key.
Different Rates For Different Risks
An easy example would be considered what you would pay to insure a $145,000 Mercedes AMG? Then consider what you would likely pay for a $20,000 Toyota Prius? You would naturally expect to pay less for the less expensive non-sports car!
What if we helped reduce the chance of having a claim in the first place and helped reduce the size of the claims you might have? Wouldn’t you expect to then pay less for insurance if you were working to have fewer and smaller claims and could show the systems you were using to reduce your Total Cost Of Risk?
Sure you would. Guess what? Insurance companies love clients that work on reducing risk too!
How Does Your Insurance Broker Help Reduce Your Risks?
Just a quick question. Does your current insurance broker just give you quotes at renewal time? Or does your broker work all year to help reduce your Total Cost of Risk?
Give me a call and lets discuss how we can help with you Insurance Cost Reduction by reducing your risk! 1-888-991-2929 Ask for Grant Davis!
The GDI Insurance Agency, Inc. Client Philosophy
GDI Insurance Agency, Inc. has extensive background rooted in Specialty Risk Management and Financing Programs for clients working in virtually every industry. Nearly 20 years ago, GDI Insurance Agency, Inc. uncovered a disparity between the needs of clients and the services being provided to meet those needs in the marketplace. In response, the GDI Insurance Agency, Inc. Client Philosophy was created and continues to evolve to include an ever-expanding list of services to meet specific client needs.
