Michelle Babbino, REALTOR®

Category: Home Business

  • Hurricane Insurance for Business

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    Before the Hurricane: Safeguard the Future of Your Business

    Are you a business owner? Here are two alarming statistics about natural disasters for you: As many as 4 of 10 businesses that experience a natural disaster never recover. Worse, at least 1 in 4 businesses that are forced to close in the wake of a disaster never reopen. And if your business is small, or if all of your operations are in one location, the outlook worsens.

    If your business is located in a hurricane zone, you need to have a disaster plan in place.

    Luckily, you have an abundance of resources. You can find step-by-step help for disaster planning, response and recovery in FEMA’s Emergency Management Guide for Business and Industry. Other sources include ready.gov and the Insurance Institute for Business and Home Safety (IBHS).

    Insurance Considerations

     Once the hurricane has passed, you may need quick access to funds to:

    1. Repair damage to your business
    2. Mitigate lost

    Does your business have insurance to provide the funds necessary to survive a disruption in your income? What should you consider when reviewing your business’s insurance plan?

    Direct Hurricane Damage

    Review your property insurance for common threats. Be sure your policy includes coverage for the threats commonly associated with hurricanes, such as wind damage and falling trees. Note that many standard property insurance policies do not include coverage for common threats such as damage caused by flooding, power outages, or the cost for repairs specifically associated with building code compliance. (For example, if the electrical wiring in your building is not up to code, any additional cost incurred during storm repair to update the electrical system to meet code would not be covered).

    Don’t assume coverage is perfect. Even if you see that a threat is covered by your policy, note that the coverage for some items may be limited. For example, many policies will cover damage caused to your property by a fallen tree, but the cost of removing the fallen tree may be limited or not covered at all.

    Your policy may also may include coverage limitations for outdoor property such as fences and signs as well as personal property (like tools, equipment or stock) that is left outdoors. To help identify coverage and limitations, consider scheduling a policy review with your GSI Insurance Group Agent.

    Review your deductible. Some policies include a separate deductible for claims caused by a hurricane or named storm. Such a deductible is typically higher than the policy’s deductible for other types of claims like fire or theft.

    A hurricane deductible may be calculated based on a percentage of the value of property at the time of the damage. For example, say your building is valued at $100,000. Your policy includes a standard deductible of $1,000 and a separate “hurricane deductible” of 4%. If your building is partially damaged by a fire, you are responsible for the first $1,000 before the insurance company will kick in any funds. However, if your building is partially damaged by a hurricane, you are responsible for the first $4,000.

    Note that some states have laws regarding the application of such deductibles. To see if your state has special rules regarding deductibles, contact your Trusted Choice® Independent Insurance Agent.

    Floods, a Consequence of Hurricanes

    Floods are the most common and costly natural disaster in the U.S., according to FEMA. The definition of “flood” encompasses many sources of rising or flowing water and includes torrential rain and tidal surge. It’s no surprise that flooding usually accompanies a hurricane, and the damage it causes can be costlier and more widespread than that caused by a hurricane’s winds.

    It’s essential for you as a property owner to know that most property insurance policies do not cover flood damage. Flood insurance is typically available through the National Flood Insurance Program (NFIP).  Your Trusted Choice® Independent Insurance Agent at GSI Insurance Group is the best source to assist you in putting together a flood insurance plan for your business.

    Lost Income

    It’s easy to see how significant property damage from a storm could harm your business. But here’s something you may not know: The resulting loss of continued income is the leading reason so many businesses are never able to reopen after the storm has passed.

    The good news is that there’s a type of insurance designed to help businesses like yours maintain an income stream after the storm. It’s called business interruption insurance, and it provides income for your business to fulfill its financial obligations (like bills and payroll) as well as to mitigate financial losses due to fewer customers.

    Unfortunately, all too few business owners know about business interruption insurance, or they make the costly decision not to purchase it.

    Business interruption insurance can also mitigate supply chain disruption caused by a hurricane. For example, say your restaurant survived the storm with little or no damage, but your primary food supplier’s warehouse was destroyed. Even though your restaurant was not directly damaged, the financial consequence of the hurricane on your business is still significant. Ask your Trusted Choice® Independent Insurance Agent if it may be possible to amend your business interruption insurance policy to include coverage for your business should another business on which yours depends suffers crippling damage.

    Include Insurance in Your Disaster Plan

    You need a disaster plan for your business, and no disaster plan is complete without a review of your insurance coverage. For assistance, call your Trusted Choice® Independent Insurance Agent at GSI Insurance Group today.

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  • Are You a Management Consultant? Insure the Future of Your Business

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    Are You a Management Consultant? Insure the Future of Your Business

    Workforces have changed. Today, consultants are commonly found in strategic roles across businesses. The evolution began long before the pandemic. Decades ago, management consultants began to stake out functions where they could step into companies and other organizations, teaming with their management to map strategies to cut costs, improve customer relationship management, leverage data analytics, introduce new business processes, introduce new technologies, augment skillsets, make supply chains and procurement more efficient and effective, and in some instances, assume responsibility for functions, such as public relations, payroll or external workforce management. Those are just some of the ways in which management consultants engage with organizations.

    Large or small, management consultancies must manage the risks that accompany their operations. If you own a management consultancy, GSI Insurance Group, your Trusted Choice Independent Insurance Agent® can help you analyze and mitigate the risks with the right insurance coverage. Your agent will also touch base with you regularly to understand how your business is evolving and consequently, how your insurance needs are changing.

    What coverages does a management consultancy need?

    Professional liability coverage. As is true of other professionals, consultants are hired for their experience and knowledge. Irrespective of their expertise, mistakes happen. Someone misses a detail, or something happens that has a negative financial impact on the consultant’s customer. The customer sues if they believe the consultant failed them and cost them money. That leads to legal expenses and more if a court finds in favor of the plaintiff. In some instances, such a lawsuit could jeopardize the consultancy’s business and put an individual’s assets at risk, depending on court costs and the damages awarded to the customer.

    General liability insurance. If someone is injured on the job; if property is damaged by an individual working for the consultancy; or if remarks are made that are thought to be slanderous, general liability insurance can provide protection, particularly if legal action is taken. Costs can mount whether a consultant is at fault or not, and, as in the case of a professional liability claim, a court award can be sizeable.

    Additionally, when engaged by a company, government agency, or other organization, a consultant may be required to demonstrate that they have a certain amount of liability insurance before a contract is signed.

    Property insurance. In the event of a fire, a natural disaster, or theft, it’s important that your property is insured. In addition to rebuilding or repairing a facility, equipment may need to be replaced or an alternate work site may be required for the short term so that work can continue, making it possible for the consultancy to fulfill its contractual obligations even as a facility is being repaired or rebuilt.

    Clauses in these policies vary. Coverage for lost revenue may be included. Your Trusted Choice agent can assess your needs and determine which marketplace policies will be most appropriate for your management consultancy.

    Directors and officers liability insurance. A sole proprietor may not need this type of policy, a consultancy with directors and officers will most likely want the company to insure them in the event they need to defend themselves against a lawsuit or other legal costs associated with actions involving criminal or regulatory proceedings.

    Cyber risk insurance. Given the growth in cybersecurity crime, nearly every business needs this coverage, and management consultants are no different. They handle customers’ proprietary information or even personal data. As explained by the U.S. Department of Cybersecurity & Infrastructure Security Agency, this insurance helps organizations mitigate against the risk of a cybersecurity incident whether it damages an organization’s network, brings business operations to a halt or a hacker accesses proprietary or personal data. Such coverage is usually not included in liability policies.

    Automotive or fleet insurance. If a consultant or its employees drive a company vehicle or rent vehicles that are operated while doing the consultancy’s business, the company will need automotive  or fleet insurance. The policy may need to include comprehensive, liability, medical and property coverages.

    Other potential insurance needs. If a consultancy has employees, the business will need to look at coverages for them. Among those are: workers’ compensation, healthcare, life insurance and disability coverage.

    While management consultants have much to consider as it relates to insurance and risk mitigation, the good news is that we are available to help evaluate what coverage is needed and to identify the policies that will best meet the consultant’s needs. Call GSI Insurance Group today.

     

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  • Do You Need Employment Practices Liability Insurance?

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    Do You Need Employment Practices Liability Insurance?

    As a business owner, you’re likely familiar with the various risks and liabilities that come with running a company. However, one type of insurance that you may have overlooked is Employment Practices Liability Insurance (EPLI). EPLI provides coverage for businesses against claims made by employees regarding employment practices, such as wrongful termination, discrimination, harassment, or retaliation.

    The National Law Review explains that “EPLI provides coverage for claims made by employees alleging various employment-related wrongs such as wrongful termination, discrimination, harassment, and retaliation.” These types of claims can be expensive and time-consuming to defend, and EPLI can help cover the costs of legal fees, settlements, and judgments.

    Here are a few reasons why you should consider purchasing EPLI for your business:

    1.  Employment-related claims are common. Unfortunately, employment-related claims are not uncommon in the business world. Even if you have strict policies in place and follow all employment laws, an employee may still bring a claim against your company. EPLI can help protect your business against these claims and the associated legal costs.

    2.   It can save you money in the long run. Defending against an employment-related claim can be expensive, even if you win the case. EPLI can help cover the costs of legal fees, settlements, and judgments, potentially saving your business a significant amount of money in the long run.

    Forbes stresses the importance of EPLI for small business owners, stating that “even if a small business owner thinks they can handle any claims against their company, the reality is that lawsuits can quickly become expensive and time-consuming.” The article notes that a single employment-related lawsuit could potentially bankrupt a small business, making EPLI a wise investment.

    3.  It can protect your business’s reputation. If your business is faced with an employment-related claim, it can damage your reputation, making it difficult to attract new customers or clients. EPLI can help mitigate this risk by providing coverage for public relations expenses, which can help repair your business’s image.

    Insurance Journal highlights the increasing prevalence of employment-related claims and the importance of EPLI for businesses of all sizes, stating that “even if an employer does everything right, they could still find themselves facing a lawsuit.” EPLI can provide peace of mind and financial protection for businesses facing these types of claims.

    Is EPLI insurance right for my business?

    It’s required by law in some states. Some states require employers to carry EPLI coverage, so it’s important to check the laws in your state to see if you’re legally required to have it. Even if it’s not required by law, it’s still a good idea to consider purchasing EPLI to protect your business.

    If you’re a business owner, Employment Practices Liability Insurance is an important consideration. Even if it’s not required by law in your state, it can protect your business against costly and damaging employment-related claims.

    At GSI Insurance Group, your Trusted Choice Independent Insurance Agents®, we are trained professionals who can help you determine if EPLI would be a smart purchase for your business. After assessing your needs, we can recommend a selection of coverages that best suit your company’s unique needs.  

    Get a quote today!

     

     

     

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  • Side Hustles and Entrepreneurism Have Risks: Are You Covered?

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    Side Hustles and Entrepreneurism Have Risks: Are You Covered?

    After businesses shuttered and U.S. workers were sent home at the height of the pandemic in 2020, a report from Dollar Sprout revealed that more that 27% of those with a side hustle rely on that income to pay their bills.

    They might be doing anything from tutoring, freelance writing, offering professional consulting services, walking dogs, or delivering groceries, to name a few. The Dollar Sprout report also revealed that:

    • Of those with a side hustle, 18% expect to turn it into a full-time source of income.
    • Although 23% lost side-hustle income because of COVID-19, 42% remain hopeful about their prospects.

    While the pandemic reshaped the workplace, the prevalence of home-based businesses had already given rise to ETSY, the fourth largest U.S. e-commerce site by monthly visits, where people sell everything from crafts and antiques to handmade toys and items for weddings, among other things.

    The community of freelancers is increasing steadily. The Freelancers Union, established in 1995, says:  

    • There were 57 million U.S. freelancers in 2020.
    • Americans rack up more than 1 billion freelance hours each week.
    • Freelancers contribute more than $1 trillion annually to the U.S. economy.

    New models of work create different insurance requirements

    As individuals take on side hustles to generate more income or out of a desire to operate their own businesses, they also take on risks. If you have a side hustle, you need to insure yourself accordingly.

    Liability insurance tops the list. We can help you evaluate your side business, assess your existing coverages, and determine if you need a professional or business liability policy in addition to personal insurance. As a highly trained professional, your Trusted Choice agent can advise you of the specific or often overlooked coverages you should consider, and then assemble competitive product choices for you from the insurance marketplace.

     Why is this so important? Even the most benign gig could destroy an individual financially in the absence of appropriate insurance coverage. Imagine a child takes a nasty tumble in your home while there for a piano lesson or a client accuses you of plagiarism: You will be liable. Or consider the costs you would be responsible for if the dog you’re walking breaks loose and attacks a pedestrian. The right policy can protect you.

    Cyber insurance is also a growing consideration. If you set up an online store to sell crafts or homemade baked goods and a hacker steals your customers’ credit card data, what would be the cost to you? Would you be able to recoup your losses? Cyber insurance can protect you in the event of a breach whether your computer is hacked or your phone containing private information is stolen.

    Auto insurance. Some automotive policies are for personal use only. Others may cover a business-related accident, but with limited coverage.

     If your side hustle involves driving and you get into an accident, do you know whether your insurance will cover you? If not, check with your Trusted Choice agent before an accident occurs.

     Even if you are employed as a delivery driver, you need to know whether the company’s insurance covers you and what the limits are for collision, liability, and medical. Talk with your independent agent, so you’ll know if you need a commercial policy for adequate protection.

    Fire insurance. You probably have a homeowners or renters policy that provides coverage for losses incurred in a fire.

     But what happens if you operate a home business and spent thousands of dollars on office equipment? Will the insurance extend beyond your personal belongings to cover that equipment? Or, for that matter, will it cover the materials you purchased to make the items that you sell or the business inventory you store at home?

    Find answers before you need to make a claim, and avoid potentially devastating surprises. We can explain where your personal coverage ends, and where the gaps are in your business coverage.

    As your business grows, be sure to inform your agents, so they can work with you to adjust your coverages and ensure the policies keep pace with your needs — especially if you hire workers or engage a contractor. Your agent can advise you about workers’ compensation insurance and employment practices liability insurance. Your agent also can review your contractor’s proof of insurance to determine if it meets your business’s needs.

    Think of your GSI Insurance Group agent as a business partner who has your interests at heart. Your agent will work with you every step of the way as you grow your side hustle and reap the fruits of your efforts.

     

     

     

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  • Benefits of Using an Independent Insurance Agent: Small Business Owners

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    Money, Time & Peace of Mind: Benefits for Your Small Business

    As a business owner, you have a lot on your plate. Sure, your finances are in line. But on any given day your role can evolve from being the boss to HR specialist to head of sales to sweeping floors — that’s just how it is. You spend every minute trying to meet the day-to-day demands of the business, working toward success.

    Insuring your business adequately can seem overwhelming, especially if you’re new to the game. But you can’t afford to get this wrong. Every company has multiple areas of vulnerability — some are general (like a fire or theft) while others are unique to your line of work. And it’s scary to realize how easily you could overlook an area of vulnerability and be sideswiped if the worst were to happen.

    Ask yourself: If my business were to suffer a significant loss, could it survive? If your answer isn’t, “Definitely. I’m 100% sure,” then it’s time to ask for help.

    When it comes to insuring your business, a Trusted Choice® Independent Insurance Agent will save you time and money, plus bring you peace of mind. Your independent insurance agent’s mission is to help protect your firm. And getting the proper insurance coverage doesn’t have to be complicated or break your bank. Here’s why:

    Right Coverage, Right Price

    Everyone knows that if you want the best combination of service, product, and price, you’ve got to shop around. Insurance is no exception. But it’s not as easy as picking the cheapest option. You don’t want to run the risk of getting flimsy coverage that leaves you vulnerable. You also don’t want to pay way too much for coverage you might not need. Your Trusted Choice Independent Insurance Agent has the capacity and know-how to search for an appropriate protection package for your firm.

    With your business and budget in mind, an independent agent will go to work and compare policies and rates among many insurance carriers to ensure you’re offered appropriate coverage — tailored to the unique needs of your business — at a competitive rate.

    Knowledge Gained, Time Saved

    If you Google, “What insurance does my small business need,” you’ll find that Forbes lists 13 different kinds. As a busy business owner, do you have the time to research and understand the intricacies of them all, let alone comparison shop? Make the most of your time and turn to a trained professional.

    Working with a Trusted Choice Independent Insurance Agent at GSI Insurance Group is like having a trustworthy, silent partner. After an exploratory meeting with you to determine the insurance needs of your business, your agent will do all of the heavy lifting and research necessary. You’ll be surprised at how little of your time is required to get it right. Instead of spending countless hours trying to understand the ins and outs of insurance, you’ll be able to do what you do best — operate your business.

    Coverage Confidence

    You’ve made significant investments in your business and probably have worked tirelessly towards its success. And you have employees and customers who rely on you for a paycheck or for services or products. All of this comes with the pressure to succeed and probably more than a few sleepless nights. There are so many important aspects to running a business, but your GSI Trusted Choice agent can take a significant burden off your shoulders by making sure your insurance coverage is appropriate.

    No one wants to consider the worst happening. But it could so turn to your Trusted Choice Independent Insurance Agent at GSI Insurance Group today for guidance.

     

     

     

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  • General liability for small businesses: What’s covered and what isn’t

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    General Liability for small businesses:  What’s covered and what isn’t

    Small business owners have a lot of responsibilities, including managing their finances and protecting their assets. One key aspect of this protection is insurance, which helps mitigate the financial impact of unexpected events. Among the many types of insurance available to small businesses, general liability insurance is a must-have for many. In this post, we’ll take a closer look at what general liability insurance covers and what it doesn’t cover, to help small business owners make informed decisions about their insurance needs.

    What is general liability insurance?

    General liability insurance is a type of insurance that provides financial protection to small businesses in the event that they are sued for causing injury or property damage to a third party. This type of insurance covers the costs of legal fees, settlements, and judgments, up to the policy’s limit.

    What does general liability insurance cover?

    General liability insurance covers a wide range of events and incidents, including:

    Bodily injury: If a third party is injured on your property, or as a result of your business operations, general liability insurance will cover the cost of medical expenses, lost wages, and other related expenses.

    Property damage: If your business operations cause damage to someone else’s property, general liability insurance will cover the cost of repairs or replacement.

    Advertising injury: If your business is sued for defamation, copyright infringement, or other advertising-related issues, general liability insurance will cover the cost of legal fees and settlements.

    Product liability: If a product you sell causes injury or damage to a third party, general liability insurance will cover the cost of legal fees, settlements, and judgments.

    What doesn’t general liability insurance cover?

    While general liability insurance provides comprehensive coverage for many potential liabilities, there are some things that it doesn’t cover. These include:

    Professional liability: If your business provides professional services, such as consulting or legal advice, you will need to purchase professional liability insurance to cover potential lawsuits related to your services.

    Workers’ compensation: If an employee is injured on the job, workers’ compensation insurance is required to cover their medical expenses and lost wages.

    Auto liability: If your business uses vehicles, you will need to purchase auto liability insurance to cover accidents that occur while driving on business.

    Property insurance: If you own your business property, you will need to purchase property insurance to cover damage to the building and its contents.

    In conclusion, general liability insurance is an important investment for small business owners. It provides financial protection for a wide range of potential liabilities, but there are some exclusions to be aware of. By understanding what is covered and what isn’t, small business owners can make informed decisions about their insurance needs and protect their assets. According to the Small Business Association, over 60% of small businesses don’t recover from disasters due to the lack of insurance coverage. (Source: https://www.sba.gov/business-guide

     

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  • Side Hustles and Entrepreneurism Have Risks: Are You Covered?

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    Side Hustles and Entrepreneurism Have Risks: Are You Covered?

    After businesses shuttered and U.S. workers were sent home at the height of the pandemic in 2020, a report from Dollar Sprout revealed that more that 27% of those with a side hustle rely on that income to pay their bills.

    They might be doing anything from tutoring, freelance writing, offering professional consulting services, walking dogs, or delivering groceries, to name a few. The Dollar Sprout report also revealed that:

    • Of those with a side hustle, 18% expect to turn it into a full-time source of income.
    • Although 23% lost side-hustle income because of COVID-19, 42% remain hopeful about their prospects.

    While the pandemic reshaped the workplace, the prevalence of home-based businesses had already given rise to ETSY, the fourth largest U.S. ecommerce site by monthly visits, where people sell everything from crafts and antiques to handmade toys and items for weddings, among other things.

     

    The community of freelancers is increasing steadily. The Freelancers Union, established in 1995, says:

    • There were 57 million U.S. freelancers in 2020.
    • Americans rack up more than 1 billion freelance hours each week.
    • Freelancers contribute more than $1 trillion annually to the U.S. economy.

    New models of work create different insurance requirements

    As individuals take on side hustles to generate more income or out of a desire to operate their own businesses, they also take on risks. If you have a side hustle, you need to insure yourself accordingly.

    Liability insurance tops the list. Your Trusted Choice Independent Insurance Agent® can help you evaluate your side business, assess your existing coverages, and determine if you need a professional or business liability policy in addition to personal insurance. As a highly trained professional, your GSI agent can advise you of the specific or often overlooked coverages you should consider, and then assemble competitive product choices for you from the insurance marketplace.

    Why is this so important? Even the most benign gig could destroy an individual financially in the absence of appropriate insurance coverage. Imagine a child takes a nasty tumble in your home while there for a piano lesson or a client accuses you of plagiarism: You will be liable. Or consider the costs you would be responsible for if the dog you’re walking breaks loose and attacks a pedestrian. The right policy can protect you.

    Cyber insurance is also a growing consideration. If you set up an online store to sell crafts or homemade baked goods and a hacker steals your customers’ credit card data, what would be the cost to you? Would you be able to recoup your losses? Cyber insurance can protect you in the event of a breach whether your computer is hacked or your phone containing private information is stolen.

    Auto insurance. Some automotive policies are for personal use only. Others may cover a business-related accident, but with limited coverage.

    If your side hustle involves driving and you get into an accident, do you know whether your insurance will cover you? If not, check with your Trusted Choice agent before an accident occurs.

    Even if you are employed as a delivery driver, you need to know whether the company’s insurance covers you and what the limits are for collision, liability, and medical. Talk with your independent agent, so you’ll know if you need a commercial policy for adequate protection.

    Fire insurance. You probably have a homeowners or renters policy that provides coverage for losses incurred in a fire.

    But what happens if you operate a home business and spent thousands of dollars on office equipment? Will the insurance extend beyond your personal belongings to cover that equipment? Or, for that matter, will it cover the materials you purchased to make the items that you sell, or the business inventory you store at home?

    Find answers before you need to make a claim, and avoid potentially devastating surprises. The GSI team can help explain where your personal coverage ends, and where the gaps are in your business coverage.

    As your business grows, be sure to inform your GSI  agent so they can work with you to adjust your coverages and ensure the policies keep pace with your needs — especially if you hire workers or engage a contractor. Your agent can advise you about workers’ compensation insurance and employment practices liability insurance. Your agent also can review your contractor’s proof of insurance to determine if it meets your business’s needs.

    Think of your GSI agent as a business partner who has your interests at heart. Your agent will work with you every step of the way as you grow your side hustle and reap the fruits of your efforts.

     

     

     

     

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  • Own a Home-Based Business? Think ‘Presidentially’ When Considering Risks

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    Own a Home-Based Business? Think ‘Presidentially’ When Considering Risks

     

    No, we are not implying you fancy yourself the next Washington or Lincoln. But are you the proud owner or founder of one of the estimated 59% of established businesses in the United States that operate from a home? Then, even if your face doesn’t appear on Mount Rushmore, for your business you are still the top dog, head cheese, or grand high poobah. So welcome to your month, Ms. or Mr. President!

    But just as you realize that there are similarities to all businesses, wherever located, you also know there are often concerns, considerations, and risks unique to a home-based environment. And your we want to remind you that designing proper protection encompassing both those common and unique risks requires ongoing communication and review of your current insurance and risk management programs.

    Yet studies show that of the 11 million-plus home-based businesses, nearly 60% do not have insurance specifically recognizing and providing coverage for these unique risks. When asked about the reasons for this lack of additional insurance, business owners responded:

    • They thought they were already properly covered by their personal insurance: 40%.
    • They thought their business was too small to insure: 30%.
    • They could give no specific reason: 20%.

    The first assumption is demonstrably false. Standard homeowners policies are designed for personal exposures, not a business. While there may be small areas or limits of coverage available for certain types of home-based businesses, the vast majority will find coverage severely limited or specifically excluded for business losses related to such common risks as theft, vehicle usage, employee injuries, or life/health/disability. The largest potential gap in proper coverage arises from the lack of liability protection for claims arising out of business activities, whether the claim occurs in the home or elsewhere.

    The second assumption above is also wrong, and the third response, at a minimum, shows a dangerous lack of knowledge.

    Starting a home-based business may be the first step on your road to successful entrepreneurship. Whether your business ultimately remains in your home or grows into the need for outside facilities or relocation, at GSI Insurance Group, we stand ready to be your ongoing valued partner. Schedule a time today to review your current or future business plans, and let us help you establish a comprehensive insurance and risk management program to protect what we both hope will be your most valuable growing asset.

    Can Mount Rushmore be far behind?

    You’re Not Home Alone in Business

    The stereotype of a home-based business being about networking, consulting, or holding sales parties has long been out-of-date. Today, the term can encompass everything from a one-person operation turning a hobby into an income to a major enterprise with dozens of employees. Here are a few facts from recent studies:

    • Most home-based businesses — 67% — fall outside the traditional categories such as freelancing, independent contracting, consulting, and virtual assistance.

    • Of all new businesses, 69% are started in a home.
    • Three and a half years later, 59% of those new businesses are still operating from a home.
    • Home-based businesses that have employees: 75%.
    • Women-owned businesses: 72% operate from home.
    • Founders come from all age groups. Those planning to start a business include:
      • 30.5% of young entrepreneurs.
      • 25% of retirees.

    Sources:

    http://smallbiztrends.com/2013/07/home-based-businesses-startup.html http://www.independentagent.com/News/PressReleases/Pages/2004/NA20040225120203.aspx

     

     

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  • Guard against Cyber Attacks with Cybersecurity Insurance

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    Guard against Cyber Attacks with Cybersecurity Insurance

     

    Ransomware attacks are among the latest, costly means by which hundreds of organizations and tens of thousands of computers have been infected throughout the world.

    In May 2021, the group REvil attacked JBS, a meat producer that processes about one-fifth of the U.S. meat supply. JBS reportedly paid an $11 million ransom to the cybercriminals.

    That attack came on the heels of the hack in the spring of 2021 on Colonial Pipeline, which carries 100 million gallons of fuel daily through 5,500 miles of pipeline. Critical infrastructure was knocked out of operation for more than a week before Colonial Pipeline announced it was again fully operational. The U.S. Department of Justice chased the money trail, reporting in June that it had seized bitcoins valued at over $2.3 million, a substantial portion of the ransom that the company had paid to a group known as DarkSide.

    Further illustrating the magnitude of the cybersecurity risks to businesses, a Johnson & Johnson (J&J) official recently reported that the corporation sees “15.5 billion incidents a day.”

    While hacks of large corporations make national headlines, small and mid-sized businesses that handle credit cards and other customer data as well as their own finances are equally vulnerable to cybercrime.

    Business cyber risks increased during the pandemic

    The World Economic Forum (WEF) has cited cybersecurity as a leading risk to business and government, reporting that the COVID-19 pandemic magnified the risk, “systemically altering the global security landscape.”

    HP Wolf Security commissioned a survey of office workers in eight countries in March 2021; 82% reported that since the pandemic, they work from home more often — creating opportunities for hackers to breach business networks and gain access to sensitive data. Other survey findings:

    • The pandemic blurred the line between personal and professional life for 76% of work-from-home office personnel.
    • Half of the remote workers said they consider work devices as personal devices.
    • Nearly half said they use their work laptops for “life administration.”
    • Nearly a quarter said they’ll continue working from home post-pandemic, while another 16% will divide their work hours between home and office.

    Companies have scrambled to establish security protocols and provide employees with access to secure networks while working remotely. But the situation is complicated when employees access the corporate network from both home and public spaces, using personal, public, and employer-supplied laptops, computers, and printers.

    Mitigating cybersecurity risks

    Recognizing that a cyber breach is a likelihood, companies need well-planned processes to mitigate and manage operations before they become targets. As part of your planning, it is good practice to identify a cross-disciplinary team to engage when the crisis arises. With a team and plans in place, you can respond quicker to cyber threats or actual events. For resources, visit the FBI website.

    Writing for WEF, Dmitry Samartsev, chief executive office of BI.ZONE, a digital risk management company, observed that a company’s employees are “the first line of defense against an attack.” He offered advice for cyber hygiene:

    • Provide anti-phishing training. Teach personnel to recognize phishing emails and other tactics used to phish for a way into your company’s systems and network, and to immediately report, but not respond to, suspected phishers. Sometimes social engineers place friendly calls to probe for information.
    • Stage simulated attacks. This may require engaging professional trainers.
    • Give password help. Teach how to create strong passwords. Provide software to lock up employee passwords.
    • Educate employees about how to handle customer information, billing, and other sensitive data.
    • Instill good habits. Never leave a passworded computer screen unattended. Never share passwords. Never reply to a suspected phisher. Never open unverified links.
    • Give contact information for reporting a breach or possible phishing attempt.
    • Make an ongoing investment in cutting-edge cyber defenses and training.

    Anticipate breaches and prepare for the fallout with insurance

    The ways that nefarious individuals break into business information systems are pervasive, and the costs are high. Neither commercial general liability nor property insurance typically provides cyber coverage.

    A standalone cybersecurity policy can potentially save your business, large or small, from decimation in the event of a successful cyberattack. As explained by the U.S. Cybersecurity & Infrastructure Security Agency (CISA), available coverages include the “costs arising from data destruction and/or theft, extortion demands, hacking, denial of service attacks, crisis management activities due to data breaches, and legal claims for defamation, fraud and privacy violations.” But most cybersecurity policies “do not cover physical damage and bodily harm caused by a cyberattack against critical infrastructure,” so another policy would need to be in place if that is a concern.

    Ask for professional help

    Insurance decisions can seem overwhelming, but a GSI Insurance Group (a Trusted Choice Independent Insurance Agent®) can help you assess your needs by thinking through the potential costs and consequences of a cyber breach, including those risks unique to your business. Your agent can then help you identify the appropriate cybersecurity insurance for your business from a selection of policies offered by a range of insurance carriers.

    Call your GSI Insurance Group agent today — before your business experiences a data breach or operations interruption or sustains network damage because of a cyberattack. With the right protocols and insurance in place, you can enjoy conducting business with the security of knowing you are both protected and prepared.

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