The costs associated with employment practice-related claims can be staggering and are on the rise. Employers may face a number of claims and lawsuits over wrongful termination, discrimination, workplace harassment and retaliation. And a business owner doesn’t even have to be in the wrong to be sued. The right insurance to cover defense costs and damages related to various employment-related claims can be critically important to help protect business assets. The Hartford provides comprehensive and customizable Employment Practices Liability Insurance (EPLI) designed to help protect business owners and their businesses.
 
Employment Practices Liability can help protect your business if your customers, vendors, or business invitees accuse you of harassment or discrimination.  Some BOP’s may limit protection to just your employees’ claims against you. To help give you the protection you need – especially if you have a significant amount of customer contact – third-party EPL coverage1 is included for most businesses.2
 
 If You Have Employees, You Need Employment Practices Liability InsuranceEPLI coverage helps businesses not only endure, but prevail in the event they face an employment-related claim for acts including:

• Discrimination
• Harassment
• Retaliation
• Violation of the Family and Medical Leave Act
• Wrongful discipline
• Wrongful failure to promote
• Wrongful termination

A common employee complaint filed centers around wage and hour violations including wage calculation, overtime calculation and job classifications. Employees file wage and hour lawsuits accusing employers of misclassifying employment status or miscommunicating an employee’s eligibility to receive overtime. Prevention Is Your Best Protection

​How Does Personal Cyber Insurance Work?Broadly speaking, a personal cyber insurance policy will provide financial reimbursement for the costs associated with the theft of digital information and assets up to your policy's limits. But there are a variety of ways cyberattacks can result in a monetary loss, ranging from the theft of bank account funds to payments made after extortion through an anonymous online threat. No two personal cyber insurance policies are exactly alike, but most will generally cover expenses fitting under three categorizations: personal and home protection, extortion and financial loss from fraud.
Cyber Personal and Home Protection Coverage (also called Cyber Attack Coverage)This coverage protects the policyholder against the financial consequences of personal online attacks, also called cyberbullying, or attacks against the integrity of your home systems. For example, if cyberbullying results in the wrongful loss of their job, this feature would cover lost salary up to policy limits.
If a cyberattack results in people being unable to access their home or needing to replace an electronic device, the coverage will ensure they're reimbursed for the costs associated with resolving the event.
Cyber Extortion CoverageCyber extortion is when online criminals threaten the release of sensitive personal data or prevent individuals' access to their technology devices in return for a ransom. A personal cyber insurance policy reimburses individuals for payments they made under the duress of an extortion threat. Not only that, but it may also cover the costs of conducting an investigation to diagnose the cause of the event and help prevent such an occurrence in the future.
Cyber Financial Loss from Fraud CoverageCoverage for financial loss or fraud as a result of a cyber event can refer to a wide range of scenarios. These include identity theft, stolen bank funds or fraudulent use of credit cards or checks. Traditionally, this type of protection has been available as part of a standalone identity-theft coverage policy, an identity-theft endorsement for a homeowners insurance policy or identity-theft resolution assistance through a credit card company. But identity-theft coverage alone does not protect against the wider range of risks posed by cybersecurity threats.
Which Insurance Companies Sell Personal Cyber Insurance?Although cyber insurance is a growing market, standalone personal cyber insurance policies have yet to gain traction. The most prominent insurer to offer comprehensive cyber protection is State Farm, with its Cyber Event, Identity Restoration and Fraud Loss coverage. This coverage can be purchased as an add-on to State Farm home insurance.
Otherwise, personal cyber insurance is only available as add-on coverage from a select group of major insurers who sell high-value home insurance; in other words, insurance for those who have homes approaching $1 million in value or more.
State Farm Personal Cyber Insurance: An Accessible Home Insurance Add-onState Farm is the only major home insurance company to offer a personal cyber insurance add-on to its standard homeowners insurance policy, distinguishing itself from major competitors like Allstate and Liberty Mutual. The Cyber Event, Identity Restoration and Fraud Loss endorsement is not customizable, but it offers coverage up to limits of $15,000 or more—depending on the event—for only $25 per year. Although identity restoration coverage is common among home insurance policies, few other major insurers offer affordable cyber attack and cyber extortion coverage as State Farm does.
Coverage offered by State Farm's personal cyber insurance endorsement…

• Cyber attack: Pays for data recovery and system restoration costs that come as a result of a cyber attack. Consumers will be covered for combined cyber attack and cyber extortion damages for up to $15,000 per year.
• Cyber extortion: Pays for professional assistance from an expert to help mitigate a cyber extortion event, such as a perpetrator demanding money from someone before they can regain access to a device.
• Identity restoration: Covers policyholders for up to $50,000 in expenses incurred to recover control of your identity. This type of protection is a more common offering from major homeowners insurance companies, often called identity theft coverage.

High-Value Home Personal Cyber Insurance Comparison: Chubb, AIG and PUREThree notable insurers, AIG, Chubb and the Privilege Underwriters Reciprocal Exchange (PURE), offer varying degrees of personal cyber insurance coverage as add-ons to their high-value homeowners policies. The costs of these endorsements are wide ranging and can be priced from as little as $127 per year to over $1,500, depending on the amount and type of coverage selected.
InsurerCyber damage coverage types offeredAnnual premiumChubbExtortion, financial loss and personal protection$577
AIGExtortion, data restoration, crisis management and cyberbullying$1,626
PUREExtortion, fraud and attacks$625
Premiums are based on company state filings for the endorsements, including $250,000 in total personal cyber threat coverage.Insurers define their coverage in different ways, so these add-ons are not directly comparable. However, we've elaborated on the exact type of coverage offered by the insurers below.
Chubb Cyber Insurance: Broad Protection with Some Scope to CustomizeChubb cyber insurance, available as an add-on to the Chubb Masterpiece homeowners insurance policy, offers protection for three categorizations of cyber events at five different levels of limits, allowing its policyholders to adjust coverage as they see fit. The customizability gives homeowners the option to pay as little as $127 per year for coverage of up to $25,000 in damages. Conversely, more conservative homeowners concerned about the vulnerability of their personal data can get covered up to $250,000 in damages for $577 per year.
Cyber extortion coverage limitCyber financial loss coverage limitCyber personal protection coverage limitMax limit for all covered events per policy periodPremium$5,000$25,000$25,000$25,000$127
$10,000$50,000$50,000$50,000$200
$15,000$100,000$100,000$100,000$316
$25,000$150,000$150,000$150,000$421
$25,000$250,000$250,000$250,000$577Chubb defines the coverage provided by its three categorizations of cyber threats as follows:

• Cyber extortion: Covers the cost of cyberattacks involving threats to release personal information, cause failure to personal computer networks or restrict access to personal data.
• Cyber financial loss: Reimburses policyholders for stolen account funds, fraudulent charges or lost salary while resolving your claim and attorney fees.
• Cyber personal protection: Covers breaches of privacy, cyber bullying and cyber disruption, the latter referring to events that prevent you from accessing your home or interrupting a small business you run from your home.

As with other cyber insurance policies, Chubb will cover policyholders for the consequences of the event and not just the event itself. For example, if cyber bullying results in your wrongful termination from work or a false arrest, you'll be covered for related expenses, such as foregone salary or costs of being held in custody, up to policy limits.
AIG Cyber Insurance: Cyber Coverage Customized to Your NeedsAIG offers cyber insurance as an add-on to homeowners insurance through the AIG Private Client Group, the company arm focused on high-end properties. The add-on is called Family CyberEdge and offers four types of cyber protection, with coverage limits adjustable within each category to either $50,000, $100,000 or $250,000. AIG also includes identity monitoring services for a flat fee of $80 per person.
Coverage typePremium with $50,000 limitPremium with $100,000 limitPremium with $250,000 limitCyber extortion$27$50$97
Data restoration$149$277$532
Crisis management$230$426$820
Cyberbullying$27$50$97
Identity monitoring services$80$80$80
Total premium$513$883$1,626
All premiums are for coverage with a $1,000 deductible.Home insurance policyholders with the AIG Private Client Group can opt for the lowest coverage limits of $50,000 within each category and pay as low as $433 per year. But they can also select different limits for each category to balance coverage and price, and their final cyber insurance premium will be a sum of their coverage for each category. Selecting maximum limits of $250,000 in each category would result in an annual premium of $1,546.
The bulk of the cost of Family CyberEdge is made up by data restoration and crisis management coverages, which combine to make up almost 90% of customer premiums if limits are held consistent across coverage types.
AIG defines the coverage provided by its four categorizations of cyber threats as follows:

• Cyber extortion: Reimbursement for money paid to terminate or end an extortion threat and for investigation into its cause.
• Cyberbullying: Expenses incurred from cyberbullying, ranging from psychiatric services to lost salary from wrongful termination.
• Crisis management: Expenses incurred by a service provider to minimize the damage to the covered policyholder's reputation after a cyberattack or extortion.
• Data restoration: Expenses incurred by a service provider in recovering lost data after a cyberattack or extortion.

PURE Cyber Insurance: Extra High Limits for High Net-Worth Homeowners Concerned About Cyber ThreatsAll homeowners and renters insurance policyholders sold by PURE, an insurer catering to high-value clients, will be able to add a personal cyber insurance endorsement, called PURE Starling, to their policies. Coverage under this endorsement is split into three categorizations: cyberattack, cyber extortion and fraud.
But coverage levels for these individual categorizations can't be customized. With PURE, policyholders simply select between three overall limits: $100,000, $250,000 and $1 million. And cyberattack events will only ever be covered up to a $100,000 sub-limit.
Cyber coverage limitCyberattack sub-limitDeductiblePremium$100,000$100,000$500$250
$250,000$100,000$1,000$625
$1,000,000$100,000$1,000$2,500
Deductibles are fixed for each associated coverage limitThe maximum $1 million dollar limit, quadruple of the maximum for Chubb or AIG, makes PURE Starling unique among personal cyber insurance policies and a good fit for wealthy individuals who believe they are at risk of a major cybersecurity threat. But coverage at that level does require some actions to be taken by the policyholder. Those who select the highest limit will have to maintain an active cybersecurity monitoring service for their devices. This includes continuous monitoring of data exchange on the insured's smartphones, tablets and computers to enhance the individual's cybersecurity and preempt damaging cyber threats.
PURE defines the coverage provided by its three categorizations of cyber threats as follows:

• Cyber extortion: Professional assistance in handling an extortion threat and payments (with prior approval from PURE) in response to a threat.
• Cyberattack: Costs of restoring data and systems following unauthorized use, access or perpetration of malware attack on a qualifying electronic home device.
• Fraud: Costs of identity theft or unauthorized use of bank cards or checks perpetrated through a qualifying electronic home device.

What is cyber insurance?A cyber insurance policy, also referred to as cyber risk insurance or cyber liability insurance coverage (CLIC), is designed to help an organization mitigate risk exposure by offsetting costs involved with recovery after a cyber-related security breach or similar event. With its roots in errors and omissions (E&O) insurance, cyber insurance began catching on in 2005, with the total value of premiums forecasted to reach $7.5 billion by 2020. According to PwC, about one-third of U.S. companies currently purchase some type of cyber insurance.
The numbers indicate that organizations are seeing a need for cyber insurance, but what does it cover? Cyber insurance typically covers expenses related to first parties as well as claims by third parties. Although there is no standard for underwriting these policies, the following are common reimbursable expenses:

• Investigation: A forensics investigation is necessary to determine what occurred, how to repair damage and how to prevent the same type of breach from occurring in the future. Investigations may involve the services of a third-party security firm, as well as coordination with law enforcement and the FBI.
• Business losses: A cyber insurance policy may include similar items that are covered by an errors & omissions policy (errors due to negligence and other reasons), as well as monetary losses experienced by network downtime, business interruption, data loss recovery and costs involved in managing a crisis, which may involve repairing reputation damage.
• Privacy and notification: This includes required data breach notifications to customers and other affected parties, which are mandated by law in many jurisdictions, and credit monitoring for customers whose information was or may have been breached.
• Lawsuits and extortion: This includes legal expenses associated with the release of confidential information and intellectual property, legal settlements and regulatory fines. This may also include the costs of cyber extortion, such as from ransomware.

Keep in mind that cyber insurance is still evolving. Cyber risks change frequently, and organizations tend not to report the full impact of breaches in order to avoid negative publicity and damage the trust of customers. Thus, underwriters have limited data on which to determine the financial impact of attacks. Essentially, the true risk of cyberattacks is not completely understood.
What to look for as a cyber insurance buyerLots of well-known insurance companies offer cyber insurance policies, such as Allianz, Chubb Philadelphia and Travelers, to name a few. Insurance industry watchers believe that clients will soon expect cyber insurance to part of every business insurer's product line. However, like any business insurance, cyber insurance coverage varies by insurer and policy.
When comparing policies among insurers, find out if they cover all of the items listed in the previous section and inquire about the following special circumstances and limits:
Does the insurance company offer one or more types of cyber insurance policies or is the coverage simply an extension to an existing policy? In most cases, a stand-alone policy is best and more comprehensive. Also find out if the policy is customizable to an organization.

• What are the deductibles? Be sure to compare deductibles closely among insurers, just like you do with health, vehicle and facility policies.
• How does coverage and limits apply to both first and third parties? For example, does the policy cover third-party service providers? On that note, find out if your service providers have cyber insurance and how it affects your agreement.
• Does the policy cover any attack to which an organization falls victim or only targeted attacks against that organization in particular?
• Does the policy cover non-malicious actions taken by an employee? This is part of the E&O coverage that applies to cyber insurance as well.
• Does the policy cover social engineering as well as network attacks? Social engineering plays a role in all kinds of attacks, including phishing, spear phishing and advanced persistent threats (APTs).
• Because APTs take place over time, which can be months to years, does the policy include time frames within which coverage applies?

Tip: Many insurers also offer a checklist of coverage items to compare against their competitors. Use those checklists to add to your list before starting your research in earnest.
What do insurance companies look for when deciding coverage?An insurance company wants to see that an organization has assessed its vulnerability to cyberattacks (created a cyber risk profile) and follows best practices by enabling defenses and controls to protect against attacks as much as possible. Employee education in the form of security awareness, especially for phishing and social engineering, should be part of a protection plan. A boost to best practices may include organizations that have had threat assessments performed (even if not required by regulations). It’s wise to use threat intelligence services for the latest information on zero-day and targeted attacks, and to engage the services of ethical hackers to reveal security weaknesses.
Note: Threat intelligence and ethical hacking services are difficult at best or financially impossible for many small businesses. But investing in some type of vulnerability assessment tool or engaging the services of a penetration tester to probe external network defenses one time can go a long way toward improving security while negotiating cyber insurance.
As cyber insurance coverage becomes more standardized, an insurer might request an audit of an organization's processes and governance as a condition of coverage. And don't be surprised if an insurer agrees to provide coverage but at a level below (sometimes far below) what you feel you need. If so, keep interviewing insurers to find the best deal.
Making the business case for cyber insuranceAny organization that stores and maintains customer information or collects online payment information, or uses the cloud, should consider adding cyber insurance to its budget. Also consider the proliferation of devices that now connect to business networks -- there are simply more opportunities for malicious folks to access an organization's assets.
Attacks against all business are increasing. Small businesses tend to think they are safely tucked away from exposure, but Symantec found that over 30 percent of phishing attacks in 2015 were launched against organizations with less than 250 employees. Symantec's 2016 Internet Security Threat Report indicated that 43 percent of all attacks in 2015 were targeted at small businesses.
On a larger scale, the Centre for Strategic and International Studies in 2014 estimated annual costs to the global economy from cybercrime was between $375 billion and $575 billion. Although sources differ, the average cost of a data breach incident to large companies is over $3 million. Each organization has to decide if they can risk that amount of money, or if cyber insurance is necessary to defray the costs for what very well may occur.
Remember, cyber insurance covers first-party losses and third-party claims, but general liability insurance covers only property damage. Sony was caught in that situation after the 2011 PlayStation hacker breach, with hard costs reaching $171M that could have been offset by cyber insurance had the company made certain that it was covered ahead of time. During a court case, Zurich American Insurance Company said that Sony’s policy only covered physical property damage, not cyber damages.
Regarding costs, cyber insurance coverage and premiums are based on an organization's industry, type of services provided, data risks and exposures, security posture, policies and annual gross revenue. As examples only, premiums may range from $800 to $1,200 for consultants, tax preparers and small organizations with revenues of $100,000 to $500,000, to $10,000 to over $100,000 for those with revenues in the millions.
Getting startedA good first step is to create a cyber risk profile for your company, and to create a list of expenses you want to have covered in the event of an incident. Then, you can determine an estimate for third-party costs. Many insurers provide an insurance calculator on their websites to help organizations create a list of coverage and estimate costs. Then, you can begin researching cyber insurance providers. Trade associations in your industry might have some information to share as well as the U.S. Chamber of Commerce.

​The basic personal auto insurance mandated by most U.S. states provides some financial protection if you or another driver using your car causes an accident that damages someone else’s car or property, injures someone or both.
But to make the best decisions about purchasing other types of auto insurance coverage you might need, you’ll want to understand what’s covered, what’s not covered and what’s optional. In addition to understanding types of coverage, you’ll also want to consider coverage amounts.
Why? Because state-required minimums may not cover the costs of a serious accident, so it’s worth considering purchasing higher levels of coverage.
Here’s a rundown of the types of coverage available—some are required; others are optional; all are priced individually (a la carte) to let you customize coverage amounts to suit your exact needs and budget.
Mandatory coverageNearly every state requires car owners to carry the following auto liability coverage:

• Bodily Injury Liability — This covers costs associated with injuries and death that you or another driver causes while driving your car.
• Property Damage Liability — This coverage will reimburse others for damage that you or another driver operating your car causes to another vehicle or other property, such as a fence, building or utility pole.

Frequently required coverageMany states require that you carry the following coverage:

• Medical Payments or Personal Injury Protection (PIP) — Provides reimbursement for medical expenses for injuries to you or your passengers. It will also cover lost wages and other related expenses.
• Uninsured Motorist Coverage — Reimburses you when an accident is caused by an uninsured motorist—or in the case of a hit-and-run. You can also purchase under insured motorist coverage, which will cover costs when another driver lacks adequate coverage to pay the costs of a serious accident.

Even if these types of coverage are optional in your state, consider adding them to your policy for greater financial protection.
Optional coverageWhile basic, legally mandated auto insurance covers the cost of damages to other vehicles that you cause while driving, it does not cover damage to your own car. To cover this, you need to purchase the following optional auto insurance coverages:

• Collision — This optional coverage reimburses you for damage to your car that occurs as a result of a collision with another vehicle or other object—e.g., a tree or guardrail—when you’re at fault. While collision coverage will not reimburse you for mechanical failure or normal wear-and-tear on your car, it will cover damage from potholes or from rolling your car.
• Comprehensive — This provides coverage against theft and damage caused by an incident other than a collision, such as fire, flood, vandalism, hail, falling rocks or trees and other hazards—even getting hit by an asteroid!
• Glass Coverage — Windshield damage is common, and some auto policies include no-deductible glass coverage, which also includes side windows, rear windows and glass sunroofs. Or you can buy supplemental glass coverage.

Mind the gap… insuranceIf you lease or finance your vehicle, auto dealers or lenders will likely require you to purchase collision and comprehensive. But keep in mind that collision and comprehensive only cover the market value of your car, not what you paid for it—and new cars depreciate quickly. If your car is totaled or stolen, there may be a “gap” between what you owe on the vehicle and your insurance coverage. To cover this, you may want to look into purchasing gap insurance to pay the difference. (Note: For leased vehicles, gap coverage is usually rolled into your lease payments.)
Who is covered—and when?Your auto policy will cover you and other family members on your policy, whether driving your insured car or someone else’s car with permission. Your policy also provides coverage if someone not on your policy is driving your car with your consent.
Your personal auto policy only covers personal driving, whether you’re commuting to work, running errands or taking a trip. Your personal auto policy, however, will not provide coverage if you use your car for commercial purposes—for instance, if you deliver pizzas or operate a delivery service. Note, too, that personal auto insurance will generally not provide coverage if you use your car to provide transportation to others through a ride-sharing service such as Uber or Lyft. Some auto insurers, however, are now offering supplemental insurance products (at additional cost) that extend coverage for vehicle owners providing ride-sharing services.

​Water backup coverage is an optional add-on to a homeowners insurance policy. This coverage may help pay for water damage resulting from a backed up drain or sump pump. For instance, it may help cover the cost of replacing furniture or removing water after an unexpected backup.
The cost for this coverage is approximately $75 per year.

​Buying Auto Insurance in order to protect yourself without overpaying, explore the factors you should consider in putting together the right coverage for your vehicle, as well as how to select a good insurance company that will handle your claims if an accident happens. It can be confusing, but remember that taking it step-by-step makes it a much easier experience.
Personal Injury or Personal Liability: Always put you and your family's safety before anything else. Personal injury or personal liability coverage should be given great importance when putting together an insurance package. During accident situations, health insurance is the first thing requested by any medical facility treating you. If you don't have health insurance, load up this option with hefty coverage that will pay for any medical expenses incurred in a major accident.
Uninsured Drivers: According to an Insurance Research Council (IRC) study, if someone is injured in an auto accident, the chances are about one-in-seven that the at-fault driver is uninsured. Don't trust other drivers and don't take for granted that they will have as good coverage as you do. Though it can be hard to digest that you must pay a premium and the deductible for someone else's mistake, it's better than forgoing this coverage and risking losing your vehicle.
Major Accidents: You should never neglect the worst-case scenario when selecting insurance. What if your car is totaled and needs to be replaced? If the accident is not your fault, the other driver's insurance (or your uninsured motorist coverage) will pay for the vehicle. But there are other situations and natural calamities that can also destroy your vehicle, and in those cases, you'll only be able to rely on your own insurance. In case such a situation arises, it is better to have enough coverage to fully repair or replace your vehicle.
Getting Stranded: A vehicle is a combination of mechanical, electrical, and rubber parts. Things can go wrong at any time, and they are not always in your power to prevent. However, being prepared for those events is in your power if you add towing and rental coverage to your insurance. This might work out better than having a separate towing club membership, which could save you those annual fees.
Deductible Versus PremiumThe insurance deductible is inversely proportional to the premium amount. If the deductible goes up, the premium goes down and vice versa. This relationship reflects whether you prefer to pay more or less from your own pocket before stretching out your hand to the insurer. Whichever option you choose, make sure you can afford it. Some people are better off paying a higher monthly premium in exchange for a lower deductible to avoid any large payments after an accident.
Amount of Driving ExperienceMany insurance companies automatically recommend certain coverage for particular drivers. For example, if you have a teen driver at home, it is better to have good personal liability coverage with a lower deductible because new drivers are prone to making mistakes. On top of that, rates to cover teen drivers will automatically be higher because of their lack of driving experience. Try not to let the higher rates prevent you from getting ample coverage, though.
Experienced drivers with past mistakes, such as moving violations or accidents, can also have higher premiums. Defensive driving courses help to offset some of the cost, but not all of it, so drive carefully and consciously to avoid paying higher premiums later in life.
Choosing Your Auto InsurerChoosing the right coverage is just the first step. You must also choose a good insurance company if you want to maximize the chance that your claims will be paid. Look for the following qualities when choosing your auto insurer.
Reliable and Reasonable: Insurance companies should be reliable and offer reasonable coverage for the prices they charge. In some states, there isn't much difference in price among insurance companies because of state mandates. In most states, however, companies will quote different prices for similar coverage.
Covers the Vehicle at All Times: Many small insurance companies offer low rates compared to the big ones because of their lower overhead costs. But when there is an accident and an insurance claim is filed, these small companies can sometimes be a pain. They may try to wash their hands and say, "It's not covered under your policy." That's not what you want to hear when you really need them after paying your premiums for months. Also, don't go with a local insurance company that doesn't cover out-of-state accidents.
Don't Overdo ItWhen you talk to any insurance agent or service provider, they are going to try to sell you more coverage so they can make more money. In general, you don't a need a high amount of coverage unless you own an expensive vehicle, drive extensively or don't have adequate health insurance. Many insurance companies are able to make easy money off of uneducated buyers who don't know what they want. By using the tips from this article, you won't have to let a smooth-talking agent steal money from your pocket.
The Bottom LineHaving ample and reliable insurance coverage is a very important component of auto ownership: You don't want to experience money problems when you are already going through the trauma of an accident. Be a smart buyer, do the proper research, compare quotes and create a package that suits both your coverage needs and your budget.

The average cost for cyber insurance rose about five percent in 2019 despite the large increase in the number of attacks and claims files, a new report has found.
The five percent increase bumped up the average annual premium to $1,501 for a business facing moderate risks with liability limits of $1 million, a $10,000 deductible, and $1 million in company revenue. A recent IBM study found the average cost of responding to a data breach for U.S. firm is $8 million, although the total does depend greatly upon the size of the company.
Only about 20 percent of businesses have invested in cyber insurance.
Other factors also come in to play when determining premium levels, this includes the customer’s ability to protect itself from cyberattacks, the physical location of the facilities being covered along with more basic insurance factors such as total coverage selected and deductibles.
To make sure a potential customer is taking the proper precautions cyber insurance carriers are vetting customers based on their cybersecurity posture and charging those with poor cybersecurity practices higher premiums, said Mak. This assessment could include checking on the number of sensitive records stored by an organization, as well as the number of financial or credit card transactions processed by the company. Usually, the higher the number of sensitive records or financial transactions stored, the higher your company’s insurance premiums will be, said Mak.
Cyber insurance is also playing a role in the decision process on whether or not to pay a ransom. The last several months have seen several companies and municipalities opt to pay the ransom citing the fact that they were carrying cyber insurance and thus would only have to pay the deductible. Most recently the Rockville Center (NY) School District opted to pay an $88,000 ransom, joining Lake City, Fla. and Jackson County, Ga. among others that have caved in to their attacker’s demands.

​Understanding insurance can be tricky, so it's crucial to have a working understanding of your coverage and what you need. This can make a major difference in the price you will pay, as allow you to understand how your choice of insurance will protect your lifestyle, assets, and personal property.
Insurance Is About Financial Security and Protecting Your IndependenceIt may seem like you need to study volumes of books and information to understand insurance, but at its core, the principle of insurance is very basic:
When you have something to lose, and you know that you could not afford to pay for a loss yourself, insurance provides a way for you to protect your investment, lifestyle, and assets by paying a small amount of money every month in exchange for the assurance that if something goes wrong, the insurance company will have your back in the form of financial compensation.
What Is Personal Insurance?Personal insurance lines are types of insurance you buy to protect you from risks that could create financial losses that you would not be able to afford to cover on your own. Personal insurance relates to risks that you as an individual may face, due to accidents, illnesses, death, or damage to property you own.
How Does Insurance Work?When you buy insurance, you normally will pay an agreed-upon amount — the premium — to the insurance company in exchange for protection from listed risks. In exchange for the premium you pay, they agree to compensate you for losses, should one occur. Personal Insurance is based on the principle that spreading risk of an economic loss (such as a fire or theft, for example) among many people makes the risk manageable for all.
Many people pay into the protection from the loss via their insurance policy premium. The premium is collected by the insurance company and when it comes time to pay a claim, they take money from that “collection” to compensate the policy holder.
Does Everyone Have to Buy Insurance?Everyone does not have to buy insurance, but it is a good idea to buy insurance when you have a lot of financial risk or investment on the line.
Depending on the type of insurance, some insurance is optional while other insurance like car insurance, may have minimum requirements set out by law.
Why Does the Bank Require Insurance?Although some insurance may not be a legal requirement, it may be a requirement of a lender or bank or mortgage company.
Depending on the type of insurance, you may “have” to buy insurance in order to get a loan. Insurance is often a requirement of obtaining financing for large purchases like homes because the lenders want to make sure that you are covered against risks that may cause the value of the investment to disappear before you have paid it off.
Getting a Better Price on InsuranceThe premium is the amount of money you will be charged by an insurance company (usually on a monthly basis) in exchange for the financial protection provided to you by your insurance policy.
To lower your premium, the best thing you can do when choosing insurance is to shop around with different companies, or use an insurance broker who can do the shopping for you and see which insurance company can give you the best rate for your insurance. Based on the claims experience and underwriting of the insurance company, the rates will vary.
Some insurance companies may have discounts geared at attracting their profile of client. How well your profile fits the insurer's profile will determine how good your rate will be.
For example, if an insurer is interested in attracting younger clients, they may create programs that offer discounts for recent graduates, or young families. In comparison, other insurers may create programs that give bigger discounts to seniors, or members of a professional order or the military. There is no way to know without shopping around and comparing options.
When Should You Buy Insurance?You should buy insurance for circumstances where a financial loss is beyond what you could afford to pay or recover from easily.

For businesses who implement security measures, Ohio becomes the first state in the nation to implement a law that affords a data breach safe harbor - the Ohio Data Protection Act.Not a week goes by without hearing about a new data breach. It’s becoming common knowledge that companies, both small and large, are facing the tough reality that it is no longer a matter of if, but really when a company will be affected by a data breach.
Over the years, lawmakers have struggled with constructing effective methods to strengthen the cybersecurity of organizations without mandating one-size-fits-all requirements, which makes it challenging. At the beginning of November, Senate Bill 220, also known as the Ohio Data Protection Act, was enacted into law in the state of Ohio—which represents the first law that accomplishes that goal.
Today’s RiskBusiness entities are prime targets…and victims, of computer-network penetration and data theft. In addition to hackers, businesses also face significant threats originating from inside the organization as well.
Data breach incidents have increased in recent years both in frequency and severity. Attacks are becoming more sophisticated – from ransomware to phishing attacks, identify and data theft and more. Often, the financial consequences of a data breach are catastrophic especially considering the cost of potential downtime for the business. In addition to the loss of time and money caused by a breach, reputation is also another factor that is affected. Businesses may choose to steer clear of utilizing a vendor or partner who has had a significant breach.
The easiest way to get in front of a breach and work to prevent one from happening is to have a strategy in place to protect your business. Now, with the help of Ohio’s new Data Protection Act, there are even legal incentives for putting those safeguard policies in place.  
What is the Ohio Data Protection Act?To incentivize companies to adopt appropriate cybersecurity protections, Ohio enacted the Data Protection Act (DPA). Specifically, the law gives companies a safe harbor against data breach claims for companies who implement, maintain, and comply with one of several industry-recognized cybersecurity programs.
The major benefit of being a compliant business is the new affirmative defense to legal claims that frequently result from cybersecurity breaches. In the event of an attack, a DPA compliant business can assert DPA compliance as a defense to any claim resulting from the breach, which could save businesses from the costs of court judgments and prolonged litigation. This way, companies can use compliance with an established, credible, written policy as a shield against cybersecurity claims in the state of Ohio.
Included in the text of the DPA, it states the act does not “create a minimum cybersecurity standard that must be achieved” or “impose liability upon businesses that do not obtain or maintain practices in compliance with the act.” Instead, the DPA endeavors “to be an incentive and to encourage businesses to achieve a higher level of cybersecurity through voluntary action.”
How to QualifyIn order to qualify for the safe harbor (Senate Bill 220), a business must implement a written cybersecurity program that:

• Protects the security and confidentiality of personal information
• Protects against anticipated threats or hazards to the security or integrity of personal information
• Protect against unauthorized access to and acquisition of data

The scale and scope of the company’s cybersecurity program should be based on these factors:

1. The company’s size and complexity
2. The nature and scope of its activities
3. The sensitivity of the personal information maintained by the company
4. The cost and availability of tools to improve information security
5. The resources available to the company

The Act also requires each cybersecurity program to “reasonably conform” to one of the following frameworks:

• National Institute of Standards and Technology’s (NIST) Cybersecurity Framework
  • NIST Special Publication 800-171 or Special Publications 800-53 and 800-53a
• Federal Risk and Authorization Management Program’s (FedRAMP) Security Assessment Framework
• Center for Internet Security’s Critical Security Controls for Effective Cyber Defense
• International Organization for Standardization (ISO)/International Electrotechnical Commission’s (IEC) 27000 Family – Information Security Management Systems Standards
• For businesses that accept payment cards – must also comply with the Payment Card Industry’s Data Security Standards (PCI-DSS) in addition to one of the frameworks listed above

The DPA is the first law in the country to provide incentives to businesses to implement certain cybersecurity controls through the utilization of an affirmative defense to liability in the wake of a data breach. With that said, these laws will be a work in progress. The act does not provide any additional information yet, regarding how a company can successfully establish that its cybersecurity plan “reasonably conforms” with one of the listed frameworks. However, this cybersecurity law is a new opening for organizations of all sizes who want to limit their liability in case of a data breach, and this work is still providing great value to companies – you can’t go wrong with making the effort to be more secure in your business and establish better policies.

​The Evolving Threat of Ransomware
The meteoric rise of ransomware has garnered substantial attention over the past decade and for good reason: the malicious software attacks can cripple their intended targets.
 
Now, recent data is shedding light on an evolving threat – while overall ransomware infections have decreased, enterprise infections have grown by nearly 12 percent in 2018 and account for 81 percent of total attacks.1
 
With danger on the doorstep for millions of businesses both large and small, precautions and counter measures must be put into place to protect critical infrastructure and data.
 What Is Ransomware?Ransomware is a malicious software created to deny access to a computer system until a ransom is paid. Ransomware can be spread in a variety of ways: a phishing email that appears as a legitimate invoice, image or link, a visit to an infected website or an ad containing malware than has been injected into a legitimate webpage. When an unsuspecting victim opens an email or inadvertently falls into an online trap containing ransomware, the virus is silently installed on the victim’s computer.
 
Ransomware manifests in different ways. Lock screen ransomware displays a window that prevents access to any part of the computer until a ransom is paid, while file-encrypting ransomware keeps the computer available but scrambles certain files and databases, then displays a pop-up screen with instructions on how to buy a private decryption key that will unlock the scrambled files.
 Business ImpactBusinesses remain a growing target due to the susceptibility of employees – in fact, some studies suggest phishing emails are clicked eight to 20 percent of the time, depending on content.2 To make matters worse, phishing grew nearly 41 percent in 2018.3
 
In a recent survey, 66 percent of business decision makers have indicated they are ‘very to extremely concerned’ about the risk cyber threats pose to their business.
 
45 percent of businesses effected by ransomware ultimately paid the hackers, but only 26 percent had their files unlocked. The average cost of an attack – including the ransom fee and associated business losses – totaled more than $900,000.4
 Protection From an AttackThe U.S. Cybersecurity and Infrastructure Security Agency (CISA) recommends the following steps to protect yourself or business from a ransomware attack:
 

• Update software and operating systems with the latest patches. Outdated applications and operating systems are the target of most attacks.
• Never click on links or open attachments in unsolicited emails.
• Backup data on a regular basis. Keep it on a separate device and store it offline.
• Restrict users’ permissions to install and run software applications, and apply the principle of “least privilege” to all systems and services. Restricting these privileges may prevent malware from running or limit its capability to spread through a network.
• Enable strong spam filters to prevent phishing emails from reaching the end users and authenticate inbound email to prevent email spoofing.
• Scan all incoming and outgoing emails to detect threats and filter executable files from reaching end users.
• Configure firewalls to block access to known malicious IP addresses.5
• Audit your network for systems using Remote Desktop Protocol (RDP) for remote communication and disable the service if unneeded.6
• Be sure to enable strong passwords along with multi-factor authentication for any RDP-enabled systems.6

​One of the more common causes of homeowner insurance claims is damage to a house and contents due to sump pump failure resulting to water backing up through the sump pump on to the floor of the policyholder's basement.  If the basement is finished, the water can cause significant damage to carpet, drywall and the personal property of the homeowner (furniture, ect.).  In addition, a musty odor can linger for an indefinite period of time following clean-up.
Every homeowner should consider purchasing water back up coverage!  Water back up coverage can be added by endorsement to the home policy available in increments of $10,000, and subject to the policy deductible, for an annual cost of approximately $80.  Considering the extensive damage that water back up can cause, this coverage is a great value to the homeowner.  Without it, the homeowner would incur the out-of-pocket expense of a professional cleaning company to set-up an industrial dehumidifier, fans and extract water from carpet.  Almost always the carpet pad will need to be replaced.  Often, the wet carpet can be salvaged by cleaning and reinstalling.

One of the more common causes of homeowner insurance claims is damage to a house and contents due to sump pump failure resulting to water backing up through the sump pump on to the floor of the policyholder's basement.  If the basement is finished, the water can cause significant damage to carpet, drywall and the personal property of the homeowner (furniture, ect.).  In addition, a musty odor can linger for an indefinite period of time following clean-up.
Every homeowner should consider purchasing water back up coverage!  Water back up coverage can be added by endorsement to the home policy available in increments of $10,000, and subject to the policy deductible, for an annual cost of approximately $80.  Considering the extensive damage that water back up can cause, this coverage is a great value to the homeowner.  Without it, the homeowner would incur the out-of-pocket expense of a professional cleaning company to set-up an industrial dehumidifier, fans and extract water from carpet.  Almost always the carpet pad will need to be replaced.  Often, the wet carpet can be salvaged by cleaning and reinstalling.

Most consumers are not aware of the difference between a captive insurance agent and an independent insurance agent.

A captive insurance agent represents one insurance company and is usually an employee of that insurance company.  An advantage, to the insurance agent, is that he/she only has to focus on the products and services of one insurance carrier.  Operating the business can be more streamlined and efficient as the captive agent does not have to deviate from their singular business processes.  State Farm and American Family Insurance are two examples of insurance companies that distribute their policies only through captive insurance agents.

An independent insurance agent is free to represent any insurance carrier he/she chooses.  While representing multiple insurance companies can make operations more complicated than that of a captive agent, the independent agent can provide the client more options.  If, for any reason, the client chooses to switch insurance companies for better rates, coverage or service, the independent agent can search multiple insurance companies to find the best fit for the client.

We are inundated with commercials from insurance companies represented by captive agents.  If you watch sports, State Farm and American Family run commercials seemingly every 5 minutes.  Ugh!  Because of their huge marketing budget, captive carriers tend to have better brand recognition.  However, when it comes to meeting the needs of individuals, families and businesses, the independent agent is able to better customize an insurance plan offering better rates and coverage options.  When purchasing insurance, I highly recommend you consult with an independent agent.

1. Obtain a quote from an independent insurance agent.  Independent agents represent multiple insurance companies so finding a great fit for you and/or your family, as it grows will be an advantage.
2.  Consider increasing home & auto insurance deductibles to keep rates lower and deters you from reporting small claims.
3.  Ask your agent if the she/he provides a coverage "check list".  Often times, the check list will reveal needed coverage.
4.  Lowest rate isn't always the best option.  You get what you pay for.
5.  If you own a home, inquire about roof coverage.  Some carriers are stingy when it comes to paying roof damage claims.
6.  Double-check  water back-up coverage limits.  It's costly to clean-up/repair a basement due to water damage from sump pump failure.
7.  Auto liability limits of $250,000/$500,000/$100,000 (and matching uninsured motorists coverage limits) is the recommended minimum.  
8.  Did you finance your cars?  If so, inquire about GAP coverage.  Some lenders include GAP in your loan/lease but it's expensive compared to the GAP coverage offered by an insurance company.

As an independent insurance agent, I offer home and auto insurance to clients through 14 different insurance companies to obtain the best value for each client.  Each of the 14 different insurance companies offers various types of discounts for a homeowner and/or an automobile insurance policy.  It takes time for me, the insurance agent, to evaluate each client's situation then match that client with the carrier that offers the best coverage and price.  Often it includes evaluating discounts available in hopes it translates to a lower cost to the client.  Below are some of the discounts available for home and auto...

Homeowner:
-newer home credit
-newer roof credit
-home alarm credit
-home & auto discount
-no loss discount 
-home alarm system discount
-life insurance discount
-advance quote discount

Automobile:
-no prior claim discount
-good student discount
-home & auto package discount
-life insurance discount
-auto safety feature discount
-no moving violation discount
-advance quote discount

It's important that your agent ask many questions to maximize insurance discounts.

A deductible is an important component of most types of insurance.  Most often, a policyholder has deductible options from $0 to $5,000 or more.  Keep in mind, the lower the deductible, the higher the premium charged by the insurance company.  After all, the insurance company has more risk if the deductible is lower.  The more risk the policyholder assumes (a higher deductible) the lower the premium charged by the insurance company.

As a general rule, it's best for policyholders to take-on higher deductibles.  For a homeowner policy, a minimum deductible of $1,000 is a good idea.  Better yet, take the next highest level or $2,500.  For personal auto insurance, consider a minimum of a $500 comprehensive deductible and $500 collision deductible (or better yet $1,000 collision deductible).  The same concept applies...  The lower the deductible the higher the premium.  

Finally, if we purchase a higher deductible, we are less likely to report a claim to the insurance company.  Avoiding reporting claims translates to lower premiums to the policyholder.

The purpose of insurance is to pay for large losses/claims.  The type of loss the policyholder simply could not afford to pay out-of-pocket.  

Whether your vehicle is owned personally or through your business, every time the vehicle is driven you take a risk.  Accidents happen.  If your driver is at-fault in the accident, you could potentially be liable for the bodily injury and/or property damage caused.  How best to purchase automobile liability insurance coverage?

States vary in how much minimum liability coverage is permitted to insure your car.  In Ohio, for example, the minimum amount of liability insurance to be carried is $25,000 per person / $50,000 per accident / $25,000 property damage.  I do not recommend purchasing the state minimum coverage.  It simply is not enough coverage to pay for damages and legal fees.  For a personally owned vehicle, I recommend no less than $250,000 per person / $500,000 per accident / $250,000 property damage coverage.  Yes, the cost may be higher but in the event of an at-fault auto accident, you'll have more coverage to pay the claimant.  For vehicles titled to a business, I recommend no less than $1,000,000 combined single limits auto liability coverage.  

Without adequate automobile liability insurance protection, coverage limits can be quickly used-up, leading to potential seizure of your personal assets to pay for damages.  This could be financially devastating.  Make sure you have adequate automobile liability insurance limits when reviewing your insurance policy.

When it comes to purchasing home and auto insurance, you have lots of options.  Insurance companies spend millions of dollars on advertising on television, social media, radio and on-line in an attempt get your attention and sell you insurance.  Of the many options available, which direction should you go?  I can tell you with certainty, the best way to purchase home and auto insurance is through an independent insurance agent.

Insurance companies sell insurance products through either their own "captive agents" OR through "independent agents" but generally not both.  A captive insurance agent (State Farm, All State, Nationwide, American Family) can ONLY provide products and services from one insurance company.  For example, a State Farm insurance agent sells insurance only from State Farm.  An independent insurance agent, on the other hand, can sell insurance insurance on behalf of any insurance company they choose.  It's not uncommon for an independent insurance agent to offer insurance from fifteen different insurance companies.  Clearly, the independent agent can provide more options for the policyholder.

As life evolves, insurance needs will change.  Purchasing home and auto insurance through an independent insurance agent, like Thompson Insurance Associates, allows the policyholder to establish a relationship with one insurance agent who can provide many different options to suit the client's insurance need.

What you should know about your property and liability business insurance rates…

When it comes to insurance the cheapest price isn’t necessarily the best option for your business.  However, the annualized cost of property and liability business insurance is a consideration when deciding the best provider for your organization.
Consider this, when the insurance carrier presents annual premiums to your agent, more-often-than-not there is some “wiggle room” on pricing.  Insurance companies can lower (or raise) rates based on “subjective risk characteristics” of your business.  What type characteristics can earn discounts of up to 30%?  If your office is clean and orderly or if you’ve been-in-business for over 5 years, discounts can be applied and your cost of insurance lowered.  If your business owns company vehicles, business auto insurance can be reduced up to 20% just by annually running motor vehicle reports on employee drivers.  In summary, risk characteristics of your business that lower the frequency or severity of potential claims can translate to lower insurance rates for your organization.

It’s important for business owners to collaborate with their insurance agent to examine ways to make business insurance more cost-effective. GET A QUOTE

You might also be interested in our recent blog post about "Tips on Selecting Your Business Insurance Coverage"

When setting up a business, it goes without saying that you are going to invest a considerable amount of money in it. Thus, you need to make sure that you are protecting your assets so that if something happens, you will be able to prevent losses. This is what commercial insurance is all about, and its importance can never be emphasized strongly enough as risks and dangers are numerous and some could be very serious.

As a car wash owner you will need to consider certain possibilities. An employee might end up getting injured on your property, or there may be an event whereby a client got injured, or the vehicle got damaged, or there may be fire that could destroy your premises or machines. These are just a few instances which show how important commercial insurance is. There are different types of commercial insurance policies one may opt for, but regardless of which to choose the most important thing is to have a suitable level of coverage.

As a car wash owner you have a legal responsibility towards your employees as well as your clients. Anything that could result in a legal liability needs to be covered if you want to make sure that you are properly safeguarded with your contractor insurance. There are insurance companies who will be better able to cater for your needs as a car wash business, so ideally look for such insurance companies, and compare their levels of coverage and premiums.
A car wash insurance policy should typically include a workers’ compensation coverage, as well as employment practices liability which will protect you as an employer from lawsuits ranging from discrimination, harassment, wrongful termination and similar issues. There will also be property insurance to protect you from damages to the premises, and if you want to be safer, there are what are called umbrella liability policies which cover even catastrophic losses. There should also be a liability insurance so as to handle any losses arising from legal liabilities to other parties.