by Grant Davis | Business Insurance, Cyber Liability, Insurance
What is Cyber Liability Insurance?
The cost of a data breach and the reputation damage to your business after a breach occurs can be devastating. You need a well-designed cyber insurance policy to provide the protection you need, and breach management expertise to ensure the breach is managed properly and in accordance with regulatory requirements. Federal and State laws require forensic, legal and credit monitoring services are in place after a breach to protect customers from the misuse of their personal information.
Free 37 page cyber security planning book.. just call 888-991-2929 or email us for your free copy
Why Have Cyber Liability Insurance?
Data breaches occur every day. Hacking incidents are the most recognizable and expensive cause of data loss, and over the last few years have become the most common.
- 49% of the data breach causes are malicious and criminal attacks.
- 32% are system glitches, such as software updates, which inadvertently expose sensitive private files.
- 9% are from people making mistakes, such as losing laptops and flash drives No matter the sophistication of the security system, there is little that can be done to eliminate the risk of human error.
A common, accidental breach is a real business risk worth considering today. Coverage May Include:
- Third party liability for financial loss, mental anguish, mental distress and any breach related claims
- First party coverage for breach related expenses
- Full limit coverage for notification, credit monitoring and computer forensic expense
- Coverage for breach costs available outside of the policy limit
- Coverage available for business interruption, lost income and restoration of data post breach
- PCI fines, penalties and remediation expenses
- Primary limits available up to 20 million (higher limits available through excess)
- Retentions starting at $1,000
- In-house quoting system for risks up to $100 million |
- Notification costs are covered when required by law and on a voluntary basis
- Free risk management services provided to policyholders
Sample Claim: Restaurant Data Breach A local restaurant chain discovers that their payment systems have been breached over the course of three months. Tens of thousands of customers had their credit card information stolen, resulting in fraudulent charges on the victims’ accounts. Victims band together and sue the restaurant chain for costs incurred, including paying for credit monitoring, recovering lost funds and expenses incurred in clearing their identities.
As technology becomes increasingly important for successful business operations, the value of a strong cyber liability insurance policy will only continue to grow. The continued rise in the amount of information stored and transferred electronically has resulted in a remarkable increase in the potential exposures facing businesses. In an age where a stolen laptop or hacked account can instantly compromise the personal data of thousands of customers, or an ill-advised post on a social media site can be read by hundreds in a matter of minutes, protecting yourself from cyber liability is just as important as some of the more traditional exposures businesses account for in their general commercial liability policies.
As reliance on technology continues to increase, new exposures continue to emerge. As your business grows, make sure your cyber liability insurance coverage grows with it. GDI Insurance Agency, Inc. is here to help you analyze your needs and make the right coverage decisions to protect your operations from unnecessary risk.
by Grant Davis | Insurance
GDI Insurance Agency has Redefined Human Resources and Employee Benefits
GDI Insurance Agency, Inc. includes state of the art Human Resources systems, wellness, traditional employee benefits, from health, dental, life, 401k etc, but has also added employee safety with its OSHA compliance programs.
Additionally GDI Insurance Agency, Inc. has teamed up with the leading provider of enterprise technology for the employee benefits industry, today announced that it will partner with an all-in-one software platform to manage Human Resources and benefits. Together they provide a seamless solution for HR managers and health insurance professionals, streamlining the HR and benefits decision making processes. Combined with a GDI Insurance Agency, Inc. dedicated Group Health Insurance Broker for each client who knows you and your account makes GDI Insurance Agency unbeatable in the Health and HR arena.
Enjoy the Benefits of a Human Resources Portal
Using a cloud-based human resources management software tool, allowing employers to solve transactional HR and benefits challenges with software, and strategic healthcare benefits challenges with the expertise of a dedicated broker advisor just for their company. GDI is featuring an automated paperless system, which simplifies employee onboarding, tracking time off, employee engagement, and off boarding. GDI also included a benefits administration platform, which will run technology to provide live rate and benefit data, real-time modeling to find the right plan and defined contribution strategy, and a census upload feature to help generate quotes in seconds.
GDI has also contracted with CA based HR attorneys their clients can call at no cost to discuss their benefits and HR needs to assure absolute compliance.
“Employers currently are challenged with the complexity of managing their HR and benefits administration, both strategically and tactically. GDI provides the all-in-one solution: A dedicated broker expert for your company, combined with innovative technology,” GDI is very excited to partner with leading industry solution experts to offer smart, dynamic and time-saving technology integrated with the Health platform, HR and payroll processing will be simpler and streamlined for small, midsize and the largest employers who currently struggle to manage these fragmented and manual processes, such as ACA compliance to name just one item that is just handled by GDI’s new program!
GDI Insurance Agency, Inc. has created the perfect match of cutting edge technology so HR departments can have a single sign-on and seamless process for hiring, onboarding, enrolling in benefits and meeting the complex compliance demands of the Affordable Care Act, as well as added the benefit of having both access to attorneys and a dedicated GDI benefits broker to work with. No call centers, no waiting for the next available rep. You call your dedicated broker that knows you, knows your account and handles any issues you need help with.
No broker of new program can come close to GDI’s offer. In addition GDI also offers a portal to help with all your OSHA Safety Compliance and even keep you OSHA 300 log online. GDI offers 3 HR programs as HR isn’t one size fits all. Here is a glimpse:
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.
Just call GDI Insurance today 888-991-2929 we will take it from there!
by Grant Davis | Construction, Insurance
Construction Contract Liability is a real thing!
When you sign a construction contract you are agreeing to all the terms and conditions of that agreement. Not just what you are going to build, the material and when you are going to build it but also the indemnity and hold harmless agreements along with the type of contractors insurance you promise to carry and the additional insured forms you will provide. All of this is negotiable, but you need to make sure you have a clear agreement about what you will be providing and if it is agreed that it can be changed, then that agreement is also in writing and well documented. Here is a page we have up that will help you understand your contractual obligations to provide the proper additional insured forms and why.
Again I will stress that these obligations can be changed, or you can agree to change them with the contractor or owner requiring them, but those changes must be in writing and well documented as they modify the agreement / contract that you are responsible for!
Even quality workmanship is not immune to potential claims of property damage or bodily injury. All operations carry the risk that injury or damage may occur as a result of the work, leading to costly lawsuits. Considering the complicated mix of contractors and subcontractors that contributes to each project, who is liable for this risk?
In insurance terms, “your work” as used in an insurance policy is a broadly defined term that includes operations performed by the policyholder or on the policyholder’s behalf, including material, parts or equipment in connection with the operations. Operations or work performed on behalf of the policyholder means work done by a subcontractor is considered the contractor’s work. Therefore, faulty electrical work performed by an electrician that causes a fire or other damage could be considered the contractor’s liability, but would be covered under a standard commercial general liability (CGL) policy.
Because a contractor or other involved party could be held liable for defects in a subcontractor’s work years after it has been completed, and filing the claim under the contractor’s CGL policy could cause the premium to rise, many construction contracts require subcontractors to provide insurance coverage for claims resulting from their completed work for a finite period of time, typically the one- to five-year range. Typical contracts also require that the subcontractor name the owner, the architect, the general contractor and other third parties as “additional insured” parties, entitled to coverage under the insured subcontractor’s CGL policy. Naming additional insured parties requires a separate endorsement to that policy.
This means that as a subcontractor, you can be held liable for claims of property damage or bodily injury resulting from a defect in your work. It is also critical to maintain this coverage into the future; failure to do so could lead to a breach-of-contract lawsuit brought by the contractor or other party.
It is important to understand this commitment when signing the contract–the insurance commitment doesn’t end with the project. Furthermore, in the event of a large claim, the subcontractor could be faced with a substantial increase in premiums on the policy.
To avoid litigation, it is crucial to know local regulations and adequately document proper performance. Know your company’s documentation practices relative to each subcontract, and carefully keep records of all processes.
It is crucial for subcontractors to respect this requirement if included in the contract. Failure to do so could result in breach-of-contract lawsuits. Naming additional insured parties can be complicated, and it is very important to work closely with GDI Insurance Agency, Inc. to ensure that your contractual obligations are satisfied.
by Grant Davis | Construction, GDI Insurance, Insurance, Solar Installers
Insurance for the Solar Panel Industry
Solar Panels are all over. How do you insure a solar panel, or a contractor that installs solar panels? What about a solar panel farm? Solar panel insurance offers this specific protection.
Solar Panel Insurance GDI 888-991-2929
With the focus on developing clean energy sources, new alternative energy facilities are popping up all across North America and are predicted to increase exponentially in the next decade. One of the least intrusive and most cost effective is solar energy. Solar cell manufacturing costs continue to fall and output efficiency continues to improve.
GDI Insurance Agency works has developed a competitive clean & green Solar Energy Insurance Coverage program to meet the needs of photovoltaic solar panel “farms,” with new features for more complete recovery.
What’s New with Solar?
- We have addressed the need for specialized valuation of solar array components;
- Additional insurance is provided for a greener approach to debris recycling;
- The opportunity to upgrade to a greener replacement when it is desirable;
- We even cover the incurred cost of an extended warranty or maintenance contract, if it becomes void due to a covered loss.
What about Tax credits?
- The tax credits/ financial incentives can be critical to your client’s profit. And, now there is a simple Solar Business Income Worksheet to help the client capture and quantify these items for Business Income Coverage.
Any other Business Income Coverage special features?
- When the client also purchases optional Ordinance or Law coverage, there is an extension of time if it is required to comply with an ordinance or law;
- And, our business income coverage includes loss arising out of a covered loss to property in transit, an important coverage when insuring the installation phase.
Are other optional coverages available?
- Equipment Breakdown Coverage, Ordinance or Law, Inflation Protection, Contingent Coverage on Leased Solar Arrays, as well as Flood and Earthquake at eligible locations.
- Coverage is available from day one of the installation project well into the future, when the solar array is providing clean power to the end user.
There is a lot that needs to be done differently than “normal insurance” to properly cover a solar farm, or contractor installing solar systems.
Matthew Davis, MBA, CPCU, AAI
by Grant Davis | GDI Insurance, OSHA, Safety Tips
Are you Prepared for an OSHA Inspection?
Most clients are a little apprehensive / worried about having an OSHA inspection. I try to explain that these are very welcome visits. If something is wrong, or not up to code the time to fix it is well before anyone is injured. These inspections give business owners the chance to fix safety issued before someone is injured. On a positive note, insurance companies respond very well offering premium credits as you implement safety programs that reduce the risk of injury or the severity of your employee’s potential injuries. Following this simple program helps your company cut the cost of their workers comp, helps reduce premiums modification factors and generally lowers the cost of your business insurance as it reduces your companies risk! https://gdiinsurance.com/why-gdi
The Occupational Safety and Health Act (OSH Act) requires employers to provide a safe work environment for their workers. The Occupational Safety and Health Administration (OSHA) is responsible for creating workplace safety standards and enforcing compliance with the OSH Act.
OSHA enforces compliance with the OSH Act by conducting inspections, gathering evidence and imposing penalties on noncompliant employers. OSHA penalties are civil penalties that may result in fines. However, OSHA may refer certain violations to the U.S. Department of Justice for criminal prosecution. Actual penalties imposed on an employer take into consideration the gravity of the violation, the size of the employer’s business, good faith efforts the employer makes to comply with the law and the employer’s compliance history.
This Compliance Overview provides a summary of the OSHA inspection process as well as some tips and reminders that employers should be aware of during an actual inspection. It has been my experience that the most drastic actions OSHA may take is usually in response to a bad attitude toward safety and or after someone has been seriously hurt because of non compliance. If you have even 1 employee you have to have and Illness and Injury Prevention Plan and all required OSHA safety programs for your company. GDI Insurance Agency Inc, can help! We provide this material so you can read it, modify it to fit your operation, implement and document your trainings!
Employers Subject to OSHA
Most private sector employers in the United States, the District of Columbia and other U.S. jurisdictions are subject to the OSH Act, either directly or through an OSHA-approved state program. State plans are OSHA-approved job safety and health programs operated by individual states instead of federal OSHA. The OSH Act encourages states to develop and operate their own job safety and health programs. State-run safety and health programs must be at least as effective as the Federal OSHA program.
In general, state and local government employees (public employees) are not subject to the OSH Act. However, public employees may be covered through an approved state program.
What To Expect During OSHA Inspections
OSHA inspections are conducted by OSHA’s compliance safety and health officers.
Compliance officers have authority to:
- Conduct inspections;
- Assign specialists to accompany and assist them during an inspection (as appropriate or required);
- Issue citations for noncompliance;
- Obtain court-issued inspection warrants; and
- Issue administrative subpoenas to acquire evidence related to an OSHA inspection or investigation.
Whenever possible, OSHA will assign compliance officers with appropriate security clearances to inspect facilities where materials or processes are classified by the federal government.
Compliance officers are required to obey all employer safety and health rules and practices for the establishment that is being inspected. This includes wearing all required protective equipment and necessary respirators. Compliance officers must also follow restricted access rules until all required precautions have been taken.
Employers can request compliance officers to obtain visitor passes and sign visitor registers. However, compliance officers cannot sign any form or release, nor can they agree to any waiver. This prohibition extends to forms intended to protect trade secret information.
OSHA inspections can last for a few hours or take several days, weeks or even months. All inspections can be divided into three stages, an opening conference, a walk-around and a closing conference.
Inspection Scheduling
OSHA inspections can be either programmed or unprogrammed. Unprogrammed inspections generally take precedence over programmed ones.
Unprogrammed inspections are usually triggered by reports. OSHA gives priority to unprogrammed inspections in the following order: imminent dangers, fatalities or catastrophes, and employee complaints and referrals. OSHA may also conduct an unprogrammed follow-up investigation to determine whether previously cited violations have been corrected.
Programmed inspections are scheduled based on neutral and objective criteria. Programmed inspections typically target high-hazard industries, occupations or health substances. OSHA considers various factors when scheduling programmed inspections, including employer incident rates, citation history and employee exposure to toxic substances.
OSHA Inspection Notice
The OSH Act prohibits providing employers advance notice of an OSHA inspection. Individuals that provide advance notice of an OSHA inspection face criminal charges that may result in a fine of up to $1,000, imprisonment for up to 6 months or both. In short OSHA wants to see how things really are!
However, the OSHA Act also allows OSHA to authorize exceptions to the no-notice requirement in situations where advance notice would:
- Allow an employer to correct an apparent imminent danger as quickly as possible;
- Facilitate an inspection outside of a site’s regular hours of operation;
- Ensure the presence of employer and employee representatives or other appropriate personnel during the inspection; or
- Enhance the probability of an effective and thorough inspection (such as in investigations for complex fatalities).
When an exception is approved, OSHA will not provide more than a 24-hour notice to affected employers.
Inspection Scope
The scope of an OSHA inspection can be comprehensive or partial. A comprehensive inspection is a complete and thorough inspection of the worksite. During a comprehensive inspection, the compliance officer will evaluate all potentially hazardous areas in the establishment. However, an inspection may be considered comprehensive even though, at the compliance officer’s discretion, not all potentially hazardous conditions or practices are actually inspected.
A partial inspection is usually limited to certain potential hazardous areas, operations, conditions or practices at the employer’s establishment. However, at his or her discretion, a compliance officer may expand the scope of a limited inspection. The compliance officer will generally make this decision based on the information he or she gathers during the inspection.
OSHA Compliance Officer Arrival
OSHA inspections begin with the compliance officer’s arrival. In general, a compliance officer will arrive for a worksite inspection during the site’s hours of operation. However, OSHA may authorize additional times for an inspection as necessary.
Upon arrival, a compliance officer should present his or her credentials. If necessary, employers can contact their local OSHA office to confirm a compliance officer’s authority to conduct the inspection.
A compliance officer has the right to enter an employer’s premises if he or she has obtained consent from the employer or a warrant ordering the employer to admit the inspector. In either case, employers cannot unreasonably delay an inspection to await for the arrival of the employer representative (inspectors may wait up to one hour to allow an employer representative to arrive from an off-site location).
Consent
Employers can consent to admit a compliance officer and perform a worksite inspection. Employers may also provide partial consent, and allow a compliance officer access only to certain areas of their facilities. Compliance officers will make note of any refusals or partial consent and will report it to OSHA. OSHA may take further action against any refusals, including any legal process it may see fit to obtain access to restricted areas.
In sites where multiple employers are present, the compliance officer does not need to obtain consent from all employers present. Consent from just one employer is sufficient to allow the inspector to access the entire worksite.
Warrant
Compliance officers are not required to ask for an employer’s consent when they have a court-issued warrant. The warrant allows the compliance officer access to the employer’s facilities to conduct an inspection.
Employers that do not provide consent have the right to require compliance officers to obtain a warrant before allowing them access to the premises. As a general practice, few employers actually require warrants, though some employers have done so to delay the start of an inspection.
There are, however, some exceptions to the employer’s right to require a warrant. A compliance officer does not need to obtain employer consent or a warrant to access the premises if he or she can establish:
- The existence of a plain view hazard;
- That the worksite is an open field or construction site; or
- The existence of exigent circumstances.
Opening Conference
In general, compliance officers will try to make the opening conference brief in order to proceed to the walk-around portion of the inspection as soon as possible. In general, the opening conference is a joint conference, where both employer and employee representatives participate. However, the compliance officer may hold separate opening conferences if either employer or employee representatives object to a joint conference.
During the opening conference, compliance officers will discuss with employers:
- The purpose of the inspection;
- Any complaints filed against the employer, if applicable;
- The officers’ right to document evidence (handwritten notes, photos, video and audio recordings);
- The advantages of immediate abatement and quick fixes;
- The intended scope of the inspection;
- A plan for the physical inspection of the worksite;
- The audit of employee injury and illness records;
- Referring violations not enforced by OSHA to appropriate agencies;
- Employer and employee rights during the inspection; and
- Any plans for conducting a closing conference.
As applicable, during the opening conference, employers will also need to present their written certification of hazard assessment and produce a list of on-site chemicals (with their respective maximum intended inventory). Compliance officers will use these documents to determine the hazards that may be present at the worksite and set initial benchmarks and expectations for the physical inspection of the establishment.
Finally, at their discretion, compliance officers can conduct abbreviated conferences in order to begin the walk-around portion of the inspection as soon as possible. During an abbreviated conference, a compliance officer will present his or her credentials, state the purpose for the visit, explain employee and employer rights, and request the participation of employee and employer representatives. All other elements of the opening conference will then be discussed during the closing conference.
Walk-around
The walk-around is the most important stage of the inspection. Employer and employee representatives have the right to accompany compliance officers during the walk-around stage of the inspection.
During the walk-around, compliance officers will take notes and document all facts pertinent to violations of the OSH Act. In general, compliance officers will also offer limited assistance (as appropriate) on how to reduce or eliminate workplace hazards.
The OSH Act requires compliance officers to maintain the confidentiality of employer trade secrets. Compliance officers should only document evidence involving trade secrets if necessary. Compliance officers must mark trade secret evidence as, “Confidential – Trade Secret,” and keep it separate from other evidence. Compliance officers that violate these requirements are subject to criminal sanctions and removal from office.
Closing Conference
As with the opening conference, unless an objection exists, the closing conference is generally a joint conference. However, the closing conference may be conducted in person or over the phone. The inspection and citation process will move forward regardless of whether employers decide to participate in the closing conference.
The compliance officer will document all materials he or she provides to the employer during the closing conference as well as any discussions that took place. Discussion topics for the closing conference may include:
- Employer rights and responsibilities
- The strengths and weaknesses of the employer’s safety and health system
- The existence of any apparent violations and other issues found during the inspection
- Any plans for subsequent conferences, meetings and discussions
The closing conference is not the time for employers to debate or argue possible citations with the compliance officer. Employers should take sufficient time during the closing conference to understand the inspector’s findings and any possible consequences. Employers should also discuss any abatements completed during the inspection or any plans to correct issues in the near future.
During this conference, employers should also request copies of recorded materials and sample analysis summaries. Finally, employers should take time to discuss their right (and the process they must follow) to appeal any possible citations. Please keep in mind your GDI Insurance Broker can and will help! GDI Insurance Agency provides at no cost for our clients a complete OSHA compliant Illness and Injury Prevention Plan as well as all the required OSHA material for your company. All you have to do is revise the material to fit your companies work flows, print and distribute it to your employees and make sure they understand how to follow the process to be safe! Being able to work safely is a big employee benefit! Call GDI Insurance today for help 1-888-991-2929.
