Identify theft and your business

Identity theft is one of the fastest-growing forms of fraud. According to government estimates, nearly 500,000 people are the victims of identity theft each year. But identity theft affects more than just the victims.

Since safeguards have been established to protect consumers from identity theft, much of the financial burdens of the crime fall on the shoulders of businesses. States across the country have been working on regulations to ensure that businesses protect their consumers’ private information, thus increasing the liabilities businesses must face. Because of this, some insurance companies have established cyberrisk policies for businesses, should they become victims of a breach in security via the Internet. Additionally, some insurance carriers offer individuals limited coverage for expenses incurred to cure debt and injury to credit caused by identity theft; for example, notary expense, certified mail expense, lost income, loan reapplication fees, attorney fees and long-distance phone calls.

To protect your business from a security breach that could result in the theft of your clients’ personal information, consider creating an information security program. To do this, begin with an objective statement, which demonstrates your understanding of what is expected of your company. The statement should indicate that the program is designed to:

• Ensure the security and confidentiality of customer information
   
• Protect against anticipated threats or hazards to the security or integrity of the information
   
• Protect against unauthorized access to or use of the information that could result in substantial harm or inconvenience to any customer

Then layout the information safeguard process from start to finish.

1. Identify the ways your customers’ information could be mishandled or compromised.
    
2. Describe what you’re doing to prevent those problems and how you’re minimizing the chance for other problems to occur in the future
    
3. Describe how you intend to monitor the program and keep it up to date.

Once you have established an informationsecurity program there still are risks of a security breach. Remember, there are a number of insurance policies available to your business for added protection, contact us and we can help you decide which policy is best for you.

Planning an office party?

If you are planning an office party, you might want to give some thought to loss control and liability insurance. If you serve alcohol at a function, a professional bartender may be the way to go. Most are trained to recognize an individual who has had too much to drink. Arranging transportation in advance for those who may need help in getting home also is a wise idea.

Appropriate liability insurance is a must. If you are in doubt about what type and how much coverage is needed, it is best to have the circumstances analyzed. In some cases, “special event” coverage may advisable, for example, when a permit is required. Give our agency a call before you finalize your party plans. We will help you determine what exposures you may have and the insurance you’ll need to protect your company.
 

Utility interruption coverage

After the recent storms in the south, business owners found that some of the biggest losses can occur even if none of your property is damaged. The storms left many businesses without power for several days. Losses from a power outage may exceed any direct property damage from the storm.

Most businesses cannot operate without electricity. Some require electricity to preserve their assets, such as grocers or restaurants and any other dependent on refrigeration.

Damage to a utility’s property that results in loss to your business is not automatically covered. In fact, standard property policies specifically exclude losses resulting from interruption of utilities away from the insured premises.

There are three commonly used standard insurance endorsements for this type of situation.

1. One covers damage to the insured’s property resulting from damage to the property of the utility service. This loss must be from a covered cause of loss, such as a windstorm. The utility must be scheduled on the policy.
    
2. The second endorsement provides spoilage coverage for businesses whose biggest risk is damage to perishable items. This endorsement, designed for businesses such as restaurants, would be more suitable than the utility services endorsement because it covers a broader spectrum of causes, including the breakdown of refrigeration equipment.
    
3. For businesses where loss of power means loss of income, there is a third endorsement. This covers loss of income or extra expenses. The extra expenses may be necessary to stay in business after damage to the utility from a covered cause of loss. The utility must be scheduled.

Remember that natural disasters are not the only source of loss due to interruption of utilities. To ensure your company is protected from utility interruption, give our agency a call. We will make sure you have the right endorsements for your particular business.

Date Posted to Site:   Jan. 2006