If there is one thing we can be certain of, it is that cyber theft and cyber breaches won’t be going away anytime soon – in fact, the risks are becoming greater. Thieves who operate in this manner are difficult to catch, create new ways to infiltrate company systems every day, and realize the potential for huge profits from this illegal activity. Companies need to be aware of their cyber liability issues and the ensuing exposures, and also be able to identify the different types of cyber attacks and how they affect their business structure.
Transactional breaches are intended to manipulate a network to gain access to valuable information, such as credit card numbers, or to steal vital personal information that can later be sold to third parties (who in turn use that information for various fraudulent schemes). This causes both, the direct loss to the customer, and the resulting liability, which is an indirect loss to the company. For example, a major credit card breach could possibly result in a loss of hundreds of millions of dollars in replacement card fees, each at 3-5 dollars per card per person.
In many cases breach victims don’t often realize they have been hit or, while suspecting a breach has occurred, cannot determine the full extent of it. Even for those companies with high-end security systems in place, detecting a breach is no small task, which is why prevention, often in the form of cyber liability insurance, is such an important priority.
Competitive cyber attacks
Competitors looking to get “a leg up” on those operating in the same field of business may decide to instigate a cyber attack for the opportunity to seize valuable information about what types of products or services a competing organization may be launching. Also, news of a cyber attack can be a way that a competitor can take advantage of the fact that a company is receiving bad press because of a breach, which allows them to solicit the business of those affected by the breach.
Financial damages aside, many companies may find it difficult to overcome the reputational damage associated with a cyber breach. Once news of a cyber theft becomes a sensational headline, those companies must implement damage control, which can be extremely costly and often cannot undo the damage that has been done.
Cyber liability is a plague that is still in the infancy stages. Even the Pentagon has plans to beef up their cyber security measures, clearly demonstrating that this is a serious problem with the potential to do serious harm to our infrastructure. Speak to an agent about cyber liability protection today.
If you hold a position at a university, college, private school or other educational institution, as a director or officer of a council or as a board member, you should realize that you run certain risks and are subject to a variety of exposures. These institutions need to carry directors and officers for educators insurance D&O) to protect these vital individuals from the potential of loss of school funds, as well as personal assets, from actions they may take during the course of their duties.
Ways in which a D&O policy can be of value
You may make certain decisions, such as hiring and firing, or be in charge of school parking, or other services and be accused of favoritism, or improper use of your power or position in handing down a particular decision, or taking a stand that, for example, adversely affects someone who then claims they were unfairly or improperly treated.
In addition, the policies also function as “management errors and omissions liability insurance,” covering claims resulting from managerial decisions that have adverse financial consequences.
D&O liability insurance can be written to cover the directors and officers of for-profit businesses, privately held firms, not-for-profit organizations, and other educational institutions. Those in need of D&O protection includes many of the following:
- Governing boards
- School committees
- Parent/Teacher Associations and similar governing bodies
- Past or present directors, officers, trustees and similar board members
- Lawful spouses of the directors, officers, trustees and similar board members, and
- Past or present employees, volunteers, student teachers, and independent contractors
D&O and Educators Legal Liability (ELL) coverage protects you, as a teacher, volunteer, administrator, board member or other staff member from the type of liability claims that can arise during the educational process. Directors and officers for educators is an important coverage that no higher learning institute should be without.
photo credit: Werner Kunz cc
The operators of commercial laundry facilities face a number of exposures that require adequate amounts of insurance for commercial launderers to deal with the risks of this type of business enterprise. After all, the company is responsible for the care of delicate belongings of hundreds of people. With the risk of damaging articles of clothing, or losing or misplacing garments, as well as employees who could be injured on the job, or, as is unfortunately sometimes the case, be found guilty of stealing or misappropriating funds are all valid concerns.
Employee theft is a problem many business owners face
Storeowners must take reasonable precautions to guard against internal theft, which can happen in a number of different ways. The first step in safeguarding a business is having a carefully structured hiring practice in place, which includes reference checks, background checks, and a careful examination of the resumes of potential laundromat employees.
Owners of a laundry business who disregard the possibility of internal theft can be making a costly mistake, as well as providing lucrative opportunities for would-be thieves. Treating employees with respect, and having good relationships with staff, will often garner respect for owners, and they will find that their employees will be less likely to steal from them.
One way to reduce or eliminate employee theft
One way to reduce employee theft is by making it a mandatory business practice for employees to sign cash count slips. This will make it more difficult to hide any cash shortages in the till. If this is an issue, managers should track those times when shortages occur (most shortages generally appear at the end of a shift). Inform employees that the company has zero-tolerance when it comes to skimming cash from the business, and that those found guilty will be prosecuted to the fullest extent of the law if caught.
If cash shortages are occurring during a particular shift, rearrange schedules and see if the shortages follow the schedule change. Several storeowners suggested that re-arranging the work schedule might make it more inconvenient for a suspected thieving employee to continue siphoning funds. This approach frequently leads to the elimination of the persistent shortage, or exposes the guilty party.
The fact is that, fortunately, most employees are honest and loyal to their jobs and employers. But storeowners must be alert to the fact that this sort of thing can happen to anyone in any line of business. Having commercial launderers insurance can help when losses do occur.
Allied healthcare workers represent a large percentage of people in the healthcare industry, and like their counterparts, they face a number of risks and concerns, not the least of which is cyber breaches and cyber threats.
Cyber-related security breaches are a huge risk for healthcare organizations, due to the fact that they store important and confidential information on patients and employees, including medical records, credit card information, social security numbers, and other confidential information. The liability issues can be damaging and certain steps should be taken to lessen these types of exposures.
Performing regular risk assessments
Perhaps one of the best ways any organization can prevent an attack is by knowing where they are most vulnerable. It can be monumentally helpful to conduct risk assessments on a regular basis. Doing so will enable clinics and surgical centers to identify areas with the most potential for exposure, and protect themselves by putting a response plan in place and protect against a potential attack.
Creation of a risk management team
It would be wise for those companies that deal in keeping or storing confidential records to create a team designed to take on these issues. Hackers are becoming more and more sophisticated and new methods of prevention are required. Give team members well-defined roles and allow them to put 100 percent of their focus toward identifying and preventing cyber risks.
Regularly update all software and systems
Out-of-date software and business systems represent one of the biggest areas of vulnerability for most businesses; therefore it is recommended that everything be updated regularly. For example, knowing how often updates are released for certain programs are vital, as the longer the software remains out-of-date, the greater risk of a cyber attack.
Always work with reputable vendors
While many businesses work with outside vendors, these vendors may or may not have strong security practices and that puts these businesses at risk. Cloud storage has become increasingly popular due to the fact that it can host anything from email to applications and software. However, before selecting any outside company to work with, medical practitioners should do extensive research to ensure that security procedures are up to standards.
Perhaps the most important risk management step for all allied healthcare professionals is to secure proper amounts of cyber insurance. No matter what businesses do to prevent attacks, there is always a chance that one will occur. Should a customer ever file a lawsuit as a result of a data breach or attack, insurance can provide these organizations with some much-needed protection.
photo credit: West Point – The U.S. Military Academy cc
A large percentage of businesses depend on equipment and machinery to produce products, create a viable and sustained work environment, and for practically every aspect of their particular business model and day-to-day operations. For some, if one or two pieces of equipment were to breakdown it might not be too serious of an issue. For others, the loss of one piece of equipment, even for a few short hours, could cause serious stress, not to mention the costs associated with business interruption.
Each company has their own concerns when it comes to the breakdown of their equipment – from machinery to computers, electrical systems, and telephones – which could seriously hamper production or services at a company each and every minute the doors remain closed.
Windham CT business insurance, in the form of equipment breakdown coverage, is designed to protect against breakdowns caused by power surges, mechanical breakdown, motor burnout, boiler damage, and even operator error. Having a policy in place will help to pay for many expenses associated with damaged, broken or faulty equipment, including:
- The cost to repair or replace the damaged equipment
- Expenses for any time and labor required repairing or replacing the equipment
- Loss of income when a covered breakdown causes a partial or total business interruption
- Any other expenses incurred to limit the loss, or speed up the restoration, and
- The costs to replace any spoiled stock or materials
Whether it is the company server, or a product manufacturing device, the cost of repair without the proper coverage could be in the thousands of dollars. Add to that the additional expense of labor and parts required repairing this important cog in the daily operations and any loss of income associated with the work stoppage, and the price becomes very steep compared with the manageable cost of carrying a policy that deals with many of these issues.
Depending on the type of equipment, it is generally known that at some point in time there will be a need to replace certain parts, or even the entire unit. A loss control program designed to monitor the hours a machine has been in use, and the likelihood of a failure in the near future will go great lengths in being prepared, and perhaps getting that valuable piece of equipment serviced before it becomes an issue. A business should never skimp when it come to having Windham CT insurance for that business equipment that represents the bread and butter of the company.
photo credit: PhotoAtelier cc
Insurance is a necessity for nursing homes and assisted living facilities. The lives of residents are the responsibility of the facility, and relatives are both concerned about their care and willing to sue if they feel it’s inadequate. Unfortunately, premiums for nursing home insurance have risen dramatically—but there are ways to lower the cost of insurance for nursing homes through risk management.
Nursing homes face a number of different challenges, all of which contribute to high costs. Often there are many frivolous lawsuits that insurance companies must pay for, forcing them to charge extra to cover costs. In addition, the necessity of providing medical care to residents can also increase the price of insurance.
Risk Management and Other Solutions
Some of the policy suggestions for reducing costs include legal reform and strengthened regulation. However, risk management is a good way for individual nursing homes to lower their own costs. Insurance providers are often willing to work with nursing homes that actively take steps to reduce risk, such as implementing quality care standards or taking safety precautions. And risk management doesn’t just reduce premiums; it also helps to prevent problems from happening in the first place. This keeps residents safe and the nursing home stable.
Although the assisted living industry faces a number of different challenges, there are ways to mitigate them. Risk management is a great way to lower the cost of insurance for nursing homes.