Crafting a business owners policy

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How can agents ensure that they’re guiding small business owners to the best business owners policy available?

Business owners can be some of agents’ best clients. They understand that they need insurance, and they rely on agents and brokers’ expertise to guide them to the best business owners policy (BOP) available. But given the many fact-specific situations for most small businesses, how should agents ensure that they’re providing solid recommendations?

“It’s critical that an agent has knowledge of the industry that the client is in,” says Richard A. Savino, principal and managing partner at Broadfield Group, based in Warwick, N.Y. “Depending on that industry, the questions may vary as they relate to the coverage required.”

There are questions that apply in all cases, he adds. The agent should start with “COPE” (construction, occupancy, protection and exposure) questions regarding the ownership or occupancy of real property. “When it comes to liability, different industries have different rating bases, which could be gross sales, payroll or square footage,” he explains.

“The assumption, unfortunately, is that a BOP covers everything, but this can’t be further from the truth,” Savino says. “Each industry has unique coverage issues that may be addressed on a limited basis or not at all.”

Employee issues

If the business has employees, then workers’ compensation coverage is required in many states as is disability coverage. Agents need to be aware of the limitations and exclusions in the state-specific policies, and they need to ask detailed questions about the client’s business to add the appropriate coverage, such as employment practices liability or professional liability, for instance.

But what happens when a business has remote employees as so many do now, on either a part-time or full-time basis? The most significant issue, Savino says, is harmonizing workers’ comp coverage across multiple states. This can also be an issue if your business is located near a state border and your employees cross state lines to work every day.

“Remote employees also pose risks for cyber breaches when they work from a home office or public space like a hotel or coffee shop,” says Savino. Business owners need to consider insuring the employee’s equipment, such as a smartphone, tablet or computer, and they may need to cover the contents of an employee’s home office in some situations. They need liability insurance to protect against actions by the employee that could cause harm. If the employee has a company car, the business owner needs coverage for the vehicle. If the employee uses a personal vehicle on company business, the owner should have coverage for a non-owned auto in case the employee is in an accident while on the clock.

Some business owners don’t have their own dedicated work space but they and their employees use a location like We Work or another shared office space. “The arrangement should be treated as any other location that is leased or rented by the business,” Savino explains. As with any other lease, you should give your agent a copy of your lease agreement so the agent can confirm that your policy meets the lease requirements for coverage.

Cyber coverage

Many small business owners are convinced that cyberattacks or data breaches won’t happen to them. There are bigger, wealthier companies that should be targets. But the sad reality is that any business that has customer data is vulnerable.

So how should insurance agents explain the issue to their small business owner clients? “The first thing I do is remove the mystery,” says Savino. “I go on to quickly explain its coverage for personal and identifiable information. A few years ago clients saw this as an additional expense and were reluctant. Now with breach issues in the news constantly it’s an easy conversation. This thing to be careful of is that this coverage, which has been added or is an option on the BOP, is often limited coverage.”

Savino also notes certain concerns in working with his business owner clients. Primarily, owners are reluctant to spend what they need to at times to have a well-rounded program. Because agents can’t act as unlicensed attorneys, owners often need to engage legal counsel to round out their risk management program, which is the case with contractors. There is often push back as they don’t want to spend the money to pay the lawyers.

The other issue Savino faces is that many of the products start to look the same, which causes a potential client to look more at the price than at the actual product. “This is when knowing the client’s industry is an advantage for an agent who is versed in coverage and less concerned about beating a price, he says.”

The top risks moving companies face

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These tips can help reduce many of the common threats that are inherent in the moving business.

There are common risks moving companies encounter — when traveling long distances with a truck full of cargo, incidents are bound to happen. This article shares some of the most common risks a moving company might face and ways to prevent them.

Routine vehicle safety

Vehicle maintenance is vital to moving companies, as most issues generally start when maintenance is neglected. Some of it is unavoidable, as vehicles of this size are inevitably going to have their issues; however, the key to avoiding preventable incidents is by creating a system of maintenance tips that employees can easily follow.

Moving trucks are no different from personal vehicles when it comes to auto repair. Start by regularly checking safety features like seat belts, interior and exterior lighting, and signal lights; brake lights, headlights, as well as hazard flashers, are also important. Additionally, test the wipers and check the windshield washer fluid before a trip to ensure wipers don’t need to be replaced or that washer fluid doesn’t need to be topped.

From there, make sure the vehicle’s emergency equipment is on board in their expected locations. Store items like hand-operated jacks, jumper cables, hazard signage, and the spare tire in their designated places within the vehicle.

Furthermore, make sure the vehicle gets serviced at regular intervals. Oil changes, tire rotation, and overall routine maintenance checks keep vehicles running at peak performance. Also, check all other fluids like coolant and brake fluid in keeping with factory-recommendations, and regularly check tire wear, looking for signs of low tread or low air pressure.

Crime awareness and prevention

Moving vans and trucks are always packed with valuables and, unfortunately, thieves know it. It’s one of the reasons why some moving companies offer extra protection plans to their customers to keep them safe.

The first rule when securing a truck and its belongings is to avoid carelessness. Make sure at least one of the moving team members is with the truck at all times. Do so by taking turns at rest stops, gas stations, etc. This is important, as an unattended moving truck is an invitation for criminals lurking around.

Next, park the vehicle where it is visible at all times. Always be sure to lock it and park the truck where it can be seen if anything fishy is going on — parking under a street light or another well-lit area adds protection. Also, it’s important to not separate the cab from the trailer and to check on both regularly.

Work in teams

Teams of two make the moving process much easier. Having two team members ensures that the truck is continually watched, and it also offers an extra set of hands when it comes to loading and unloading.

Sharing drive time is another huge advantage of assigning multiple team members, especially on long trips. Not only does conversation help the driver stay awake and alert, but the extra pair of eyes might spot potential trouble.

Adverse road conditions and inclement weather

Road repair and inclement weather also contribute significantly to many moving van accidents. Some of the most difficult driving for large vehicles is encountered during road construction. Slower speeds, reading and following directional signs, as well as narrow lanes and detours can all alleviate potentially dangerous and even deadly accidents.

As for inclement weather, proper preparation for the driving climate has the potential to be life-saving. Prepare by checking the weather for the predetermined route and double-check that all necessities needed to travel during those conditions are packed. For example, if extreme winter weather is predicted, keep blankets, food, and water on board. Although it’s always a great idea to store extra non-perishable food and water while on the road, this is especially true during cold winter months. On the other hand, always check and test the AC in the cab and keep engine coolant on board for those simmering summer months.

Operator and partner comfort are not only concerns for moving companies but also for the customers, who have entrusted moving companies with their earthly possessions and family treasures. Preparing to protect that cargo is also part of the process.

How well a moving company protects and takes care of its clients’ belongings directly determines whether it earns a solid, reputable image to the public or not.

Taking these precautions can greatly enhance both the driver’s and cargo’s safety, as well as reduce so many of the common threats that are inherited in the moving company business. After all, reliability is a key component of every moving company striving to establish a solid reputation.

Checklist for wheelchairs in transport

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Whether you are a caregiver for the differently-abled in a health facility, a home health care environment or for a family member or friend, take all appropriate safety precautions when transporting a person who uses a wheelchair.

VEHICLES

Be certain the vehicle is properly equipped to accommodate a wheelchair:

  • Maintain the vehicle and have it inspected regularly
  • Make sure the lift is functioning correctly
    • Platform safety gate on the lift automatically deploys and retracts when the lift is operating
    • Warning alert sounds when the lift is engaged
    • Manual back up system for the lift functions, if needed
EQUIPMENT

Regularly inspect associated equipment:

  • See that wheelchair tie-downs are adequate and in good condition
  • Check wheelchair brakes
  • Inspect the safety belt for correct function
  • Double-check power controls for powered chairs and make sure they cannot be changed inadvertently while in the vehicle
TRAINING

Whether you’re a paid caregiver or a family member, seek out appropriate training to cover:

  • Safe loading and unloading procedures
  • Proper securement of the chair
  • Monitoring of riders when in the vehicle
LOADING

Look for critical concerns during the loading process:

  • Ensure ample loading space (rear or side)
  • Avoid uneven terrain and high traffic areas
  • Engage brake prior to lowering the lift
  • Lower the lift to the ground
  • Ensure the wheelchair safety belt is tightly fastened
  • Place the wheelchair onto the lift platform following manufacturer’s instructions
  • Deploy the brakes on the wheelchair and turn off (if electronic)
  • ALWAYS use the platform safety strap
  • Activate the lift mechanism
  • Ensure the safety gate on the platform engages to prevent a roll-off
  • Assist the person into the correct position in the vehicle when the lift is fully elevated to even with the vehicle floor
  • Lock the two safety strap mechanisms into the floor mechanisms even with the front wheels, according to manufacturer’s recommendations
  • Lock the two rear straps into the safety mechanism in the vehicle between the two rear wheelchair wheels, according to manufacturer’s recommendations
  • Attach safety straps only to the frame of the wheelchair per the manufacturer’s recommendation; most wheelchairs will have transportation hooks built into the frame of the wheelchair
  • Use the shoulder strap! A wheelchair seatbelt does not protect anyone in a vehicle accident
UNLOADING

Remember these steps when unloading:

  • Ensure ample unloading space away from any traffic
  • Deploy the lift
  • Detach the shoulder strap and tie-downs from wheelchair
  • Assist the person onto the lift platform
  • Make sure the wheelchair is facing out for a side-loading vehicle; make sure it is facing toward the front for a rear-loading vehicle
  • Ensure the wheelchair is off and the brakes are on
  • Make certain that the platform safety gate is engaged
  • Secure the lift safety strap
  • Lower the lift all the way to the ground, from outside the van
  • Carefully maneuver the wheelchair off the lift platform
  • Ensure the person is safe prior to returning to the vehicle

In a busy world, it’s easy to overlook a detail when securing a wheelchair. With patience and training, you can reduce the possibility of injury and keep everyone safer.

This loss control information is advisory only. The author assumes no responsibility for management or control of loss control activities. Not all exposures are identified in this article. Contact The Ayres Group for coverage advice and policy service.

Equipment breakdown risk is on the rise

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Equipment breakdown now rivals fire loss in both frequency and severity of claims, according to an analysis of large risk losses reported in 2018 to FM Global.

Large risk losses are those losses greater than $3 million that do not include natural hazard loss.

FM Global said in a statement that of its 232 large risk losses last year, 65 were the result of equipment breakdown, resulting in 28% of FM Global losses across all industries in 2018 based on gross loss dollar amount.

“A large number of those equipment breakdown losses last year could have been prevented. However, in a booming economy, many companies aren’t necessarily taking their facilities offline for preventive maintenance, often choosing instead an expensive roll of the dice rather than a more conservative bet,” said Brion Callori, FM Global senior vice president of engineering and research.

“Unfortunately, that strategy only works for so long before problems arise that can lead to expensive repairs, decreased revenue, and potential market-share loss for companies that can’t fill orders when their equipment breaks,” he continued.

Large losses

Other key findings from the 2018 review of large risk losses include:

  • 62% of equipment breakdown losses were due to lack of maintenance, accounting for three-quarters of all equipment loss claims paid.
  • 25% of equipment breakdown losses occurred after repairs were made or during startup.
  • Nearly half of all equipment breakdown losses had a significant human element impact or influence.
  • Operator training was a factor in 43% of equipment losses, highlighting the need for enhanced training and knowledge transfer as the industry sees significant turnover due to demographic changes.

“During the last five years we’ve seen increasing numbers of losses from equipment breakdown, especially in the pulp and paper, chemical, electric utility and mining industries,” said Callori. “Importantly, our analytics tools, based on thousands of location site visits by our loss prevention engineers over many years, continue to accurately predict large losses. While our data also shows those large losses diminish as engineering site visits and client tenure increase, if companies don’t take measures to prevent equipment breakdown, they put their business resilience at risk.”

Later this year, FM Global said, it will expand its industrial control systems service, which will broaden loss prevention engineering, including cybersecurity, to encompass the software and hardware that controls clients’ industrial systems.

In April 2019, FM Global announced its plan to hire 60 seasoned engineers dedicated to helping clients prevent equipment breakdown-related losses. Once these additional engineers are hired, FM Global will have more than 250 engineers dedicated exclusively to major equipment such as boilers, turbines, generators, transformers, chemical vessels, compressors, and pulp and paper processing machines.

Alcohol-selling insureds face a number of liabilities under dram shop laws

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As the brewery and winery space continues to innovate, new risks and exposures will enter the market.

The microbrewery market is built on innovation — innovation in flavors, business models and even beer names. Yet this modern, clever and adaptable industry is beholden to some comparatively old rules, regulations and laws. So-called dram shop laws determine to what degree a bar or other seller of alcohol is liable for injury caused to or by their intoxicated patrons. These laws vary state-by-state, which means businesses in different states assume different levels of liability when they serve wine, beer, and liquor. No matter the state, there are a few things insurance professionals should know about these laws and regulations to help limit insureds’ liability.

According to FindLaw, 43 states in the U.S. allow businesses to be held liable in cases in which they serve alcohol to individuals that end up causing injuries or death from intoxication. The most common of these laws prohibit establishments from serving minors or intoxicated customers. They also tend to prohibit serving outside of legal hours and outside the bounds set by their liquor licenses. There are other notable differences among dram shop laws. For example, Illinois and Minnesota have caps on settlements.

Where’s the exposure?

It is important to know the different exposures that can lead to lawsuits under dram shop laws. Consider the growing popularity of “wine trails.” Groups of people hop from winery to winery in one area — following a local “wine trail.” These become all-day drinking events, which carry all the usual risks associated with large groups of intoxicated people: slips and falls, DUIs, etc. Plus, participants have started adding more and more distilleries and wineries to their itineraries — adding higher quantities of and higher–octane beverages to the mix.

It’s key for these business owners to know that if someone was injured at the hands of a drunk wine trail trekker; each winery that person visited could get named in a suit brought against him or her by a third party. Additionally, while tasting rooms tend to sell at higher margins because of direct to consumer sale; owners need to be aware that this increased consumption on premises often leads to more intoxicated consumers. Owners and employees need to take measures to manage risk in advance.

This is just one example of how a winery, brewery or another establishment can be implicated in a lawsuit. However, it demonstrates some risk factors: large parties; drinking in multiple places; drinking too much; drinking without much food.

Prior and current cases impact future cases, particularly in a local area. In other words, finding one bar liable means others in the area may soon be implicated. If another local bar has been found liable in this type of case, local scrutiny is bound to increase, meaning that increased attention to risk management is crucial.

Loss control for “dram shops”

One line of thinking may ask, “Why would tasting rooms and microbreweries be interested in taking on this risk? There will always be a patron that inevitably drinks too much.” Though this may be true, leadership can take steps to ensure employees are properly trained and that the business has the right policies and procedures in place to limit liability.

  1. Identification checks: A fastidious and thorough ID check is standard practice for many taprooms, bars and wineries. This policy should be written and clear, as should the policies regarding false identification.
  2. Training: Training for servers should also be required for any establishment that serves alcohol. A respected alcohol service training program like TiPS can go a long way toward minimizing overserving and injury. 
  3. Incident log: Bar managers should maintain a log of alcohol-related incidents that occur at their bar. For example, if a customer is visibly intoxicated and a bartender refuses to serve them and helps them return home, this should be noted. A log can be used as proof that bars are employing best practices and have taken steps to care for the customer, whether it’s offering them food and water or calling for medical help.
  4. Employee records: Maintain detailed records of employees, their training and their shifts. This can help clarify who may have made questionable sales or prove that a server acted in good faith, within knowledge gained through training.
  5. Video surveillance: Video provides a way to observe patron and staff behavior and prove what occurred, when necessary. It can help demonstrate when a server “cut off” a customer, which led to a slip and fall and what time someone left the bar. However, businesses must have policies in place for storing footage; many systems default to constantly overwriting old footage, rendering the needed surveillance footage useless.

These elements are tied together with staff awareness and observation. This is particularly important in fraud cases. For example, at a brewery, a gentleman left the taproom and stumbled outside. He walked to the edge of a landscaped terrace, peeked over the edge and launched himself over. The fall was small but substantial enough to result in bodily harm. However, a taproom employee witnessed the episode. By serving as a witness, the employee could provide a stronger defense for the brewery when presented with a lawsuit by explaining that the gentleman did not accidentally fall over but rather launched himself off the terrace.

For agents and brokers new to the liquor liability space, it is important to understand the liability facing alcohol-selling insureds under dram shop laws. In addition, agents and brokers should:

  1. Know the individual business with which they are working. Agents and brokers should be able to present underwriters with a full breakdown of how alcohol is sold and consumed at a business seeking coverage. This is critical to understand, as this liability and exposure can differ based on the type of business. A brewpub has different risks than a taproom.
  2. Ask insureds about training and policies. Do they use a trusted training program? Do they have a protocol in place for dealing with overserved customers? These policyholders should have fully trained staff and policies that address overserving customers.
  3. Familiarize themselves with state laws. Dram shop laws vary from state to state and even the most subtle of differences can be incredibly important. Some states have different types of training specific to their regulations that need to be followed as well. With the proper knowledge, agents and brokers can point their clients toward the appropriate state resources, demonstrating their value to the insured.

As the brewery and winery space continues to innovate, new risks and exposures will enter the market. Variations in dram shop laws will prove tricky for existing business owners and newcomers. This presents a ripe opportunity for agents and brokers to demonstrate their value as a knowledgeable resource in this industry niche — a resource that understands the latest on their state’s dram shop laws and related loss control best practices.

For more information contact The Ayres Group at 1-800-343-2152

Courtesy: Property Casualty 360

Insurance helps hospice care providers focus on the patient

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Hospice organizations focus on the care – not a cure – for the patient, as well as support to the patient’s loved ones. If your organization operates a hospice, you are in a unique position to affect the quality of life in your communities.

By making sure your organization has appropriate insurance protection, you can keep your focus on the important services you provide to patients and their families. Take time to review the declarations page of your insurance policy. Many policies contain professional liability deductible. These deductibles can be sizeable, so it’s important to maintain a line item in your operating budget to account for this exposure.

Here are some insurance coverages to consider, but each organization is unique. Talk to your Ayres Group agent and your legal adviser for information specific to your situation.

MANAGEMENT LIABILITY (D&O)

Healthcare Institutions Directors & Officers Liability (D&O) coverage protects the management of hospices and their subsidiaries – including past, present and future directors, officers, trustees, administrators, employees, volunteers and members of boards or committees – against alleged wrongdoings. In the hospice industry, managers must direct peer review committees and quality of care and staff privileges. Periodic training regarding the Health Insurance Portability and Accountability Act (HIPAA) and the Emergency Medical Treatment and Active Labor Act (EMTALA) is essential for healthcare-related organizations. These duties and others put hospices at risk for D&O claims, such as written demands for monetary damages, formal administrative actions, civil suits, and regulatory proceedings.

D&O claims cannot be taken lightly, as they can quickly become costly. Examples include: alleged improper billing and collection practices, former business partner separations and severance disputes, breach of duty and denial of clinical privileges.

EPLI

Employment Practices Liability Insurance is another crucial coverage for hospice organizations, along with third-party EPLI coverage. Claims can potentially include discrimination, harassment, retaliation and wrongful termination. Sex and race discrimination are the most common types of EPLI discrimination claims in the workplace. For example, in the hospice industry, a highly paid nurse replaced by a younger, lower paid nurse could sue for age discrimination.

CYBER LIABILITY

Don’t overlook the threat of cyber-related incidents, and look for insurance coverage to protect the hospice from data breaches, identity theft, computer attacks, network security liability and cyber extortion. Thousands of patient names and Social Security numbers have the potential to be exposed due to security breach of a hospice computer server or as the result of a computer virus.

SEXUAL ABUSE

Sexual abuse and molestation coverage is an important area to review. Many policies provide vicarious coverage only, meaning only the hospice organization itself is protected; no coverage is included for a specific employee or volunteer worker. This can create a conflict if a claim against a worker goes to trial. You can determine if an employee or volunteer worker is covered by looking at the coverage form under “Who is an Insured.” Look to see if the sexual abuse molestation coverage is included within the general liability coverage of the policy or as a separate item. If it’s included, then sexual abuse and molestation coverage must share the limits with other liability losses. Separate coverage usually means separate limits exist. Ask your agent if you are in doubt.

By taking care of key insurance coverage, you can protect your hospice organization and turn your efforts to serving your patients, their families and the community.

For more information contact your Ayres Group Agent

Why health care entities purchase directors and officers liability coverage

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Health care organizations are under constant pressure in today’s world of evolving practices, procedures and laws. Managers deal with everything from the investment and allocation of corporate resources to administrative duties. The decisions they make affect everyone who has a relationship with the health care entity.

It’s a huge responsibility. Every action has the potential to put the organization and its individual managers and directors at risk for financial or reputational loss. But directors and officers liability insurance for health care entities – D&O coverage – can help these institutions recover from claims made against the organization and its managers.

In addition to all the issues faced by any business, health care managers must oversee and direct issues unique to health care facilities, such as peer review committees, quality of care and staff privileges. Health care facilities want to hire and retain top talent in the industry to oversee and run their organizations, but need to protect them from having personal liability at stake. D&O coverage helps accomplish that goal.

Consider some potential risks:

  • written demands for monetary damages or nonmonetary relief
  • civil suits
  • formal administrative actions
  • regulatory proceedings

Allegations can be brought by shareholders, patients, regulatory agencies, competitors, creditors or suppliers stating that the health care employees violated their professional duties of loyalty, obedience or due diligence. And those allegations or lawsuits could involve those employees’ spouses, heirs, and estates.

Directors and officers coverage can insure:

  • the health care institution and its subsidiaries
  • past and present directors, officers, trustees, administrators, employees, faculty members, staff members, volunteers, members of boards or committees (including peer review committee members)
  • spouses brought into a lawsuit because of a shared property interest or transferred property
  • estates, heirs, legal representatives or assigns of deceased, incapacitated or bankrupt insured persons

In summary, D&O coverage protects both health care professionals and the organizations they serve. It gives professionals the peace of mind to fulfill their roles within industry operating guidelines while preserving the organization’s ability to attract and hire top talent. Contact your Ayres Group Agent for more information about directors’ and officers’ liability coverage for your organization.

Knowledge is power in protecting yourself from fraud

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While you work hard to earn money, criminal enterprises are working hard to steal it. So let’s take a minute to brush up on the latest tricks, scams, and methods criminals are using to steal data and money from you and your customers.

Internet fraud is the use of internet services – or software with internet access – to defraud victims or to otherwise take advantage of them. Internet crime schemes steal millions of dollars each year from victims and continue to plague the internet through various methods. Several high-profile methods include:

  • Business Email Compromise (BEC): This sophisticated scam targets businesses working with foreign suppliers and companies that regularly perform wire transfer payments. Criminals compromise legitimate business email accounts through social engineering or computer intrusion techniques to conduct unauthorized transfers of funds. Social engineering is a method of first gaining trust to manipulate a victim into divulging personal or confidential information.
  • Data Breach: A leak or spill of data is released from a secure location to an untrusted environment. Data breaches can occur at the personal and corporate levels and involve sensitive, protected or confidential information that unauthorized individuals copy, transmit, view, steal or use.
  • Denial of Service: An authorized user’s access to any system or network is interrupted, typically with malicious intent.
  • Email Account Compromise (EAC): Similar to BEC, this scam targets the general public and professionals associated with — but not limited to — financial and lending institutions, real estate companies and law firms. Perpetrators of EAC use compromised emails to request payments to fraudulent locations.
  • Malware/Scareware: Malicious software is introduced with the intention to damage or disable computers and computer systems. Sometimes perpetrators use scare tactics to solicit funds from victims.
  • Phishing/Spoofing: Both terms deal with forged or faked electronic documents. Spoofing generally refers to the dissemination of email that is forged to appear as though it was sent by someone other than the actual source. Phishing – often used in conjunction with a spoofed email – sends an email falsely claiming to be an established legitimate business with the intent to deceive the unsuspecting recipient into divulging personal, sensitive information such as passwords, credit card numbers and bank account information. The email directs the user to visit a fake website set up only as an attempt to steal the user’s information. Vishing is a variation of the scam using voice messaging; smishing uses SMS text messaging; and pharming uses fraudulent websites. Spear phishing attacks target specific individuals and use emails that appear to come from a trusted sender.
  • Ransomware: This form of malware targets both human and technical weaknesses in organizations and individual networks to deny the availability of critical data or systems. Ransomware is frequently delivered through spear phishing emails to recipients, resulting in the rapid encryption of sensitive files on a corporate network. When the victim organization determines they are no longer able to access their data, the cyber perpetrator demands the payment of a ransom, typically in virtual currency such as Bitcoin, at which time the actor purportedly will provide an avenue to the victim to regain access to their data.

Frequent instances of internet fraud include business fraud, credit card fraud, internet auction fraud, investment schemes, Nigerian letter fraud and non-delivery of merchandise. For information on the most common complaints and scams, see the annual reports of the Internet Crime Complaint Center (IC3), a partnership of the FBI and the National White Collar Crime Center. Also see its information on Internet Crime Schemes and its Internet Crime Prevention Tips

7 safety tips for winter construction

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Construction doesn’t take a break in the winter. If you manage a construction site, think about the additional hazards of the season and take the appropriate safety precautions.

Cold temperatures, wet and snowy weather and wind chill can take a harsh toll on the human body. Increase your knowledge and awareness of cold weather issues such as frostbite and hypothermia.

Pay special attention during the winter months at your construction site to avoid safety hazards.

  1. Know the signs of winter-related injuries and illness. Educate your workers and supervisors about these cold-related injuries and illnesses and their warning signs and symptoms. For instance, shivering, lack of coordination and slurred speech are symptoms of hypothermia. If a worker exhibits any signs of illness or injury, call emergency help immediately. The Occupational Safety and Health Administration provides a Cold Stress Card that describes how to prevent and treat these serious illnesses.
  2. Require workers to wear the proper clothing and gear. Clothing and gear should be based on the temperature, weather conditions and duration of activity. Workers should wear layers whenever necessary, including an insulating, moisture-wicking base layer and a waterproof outer layer. Workers also should wear insulated, waterproof boots with extreme traction as well as warm socks and hats and gloves with grips to handle equipment safely.
  3. Discourage workers from drinking coffee or other caffeinated beverages. Many construction workers work overnight and turn to drinks with caffeine to help them get through their shift. However, drinking caffeinated beverages in winter can increase workers’ heart rates, making them feel falsely warm. Instead, encourage workers to drink water to stay hydrated.
  4. Remove ice and snow before starting work. Construction workers have enough conditions causing danger at the worksite; they don’t need to add ice and snow to the mix. Make sure all ice and snow has been removed and salt or sand has been put down on any large patches of ice before starting work. It may seem like a time-consuming task, but it will protect everybody on the job site.
  5. Provide a warm break area. Outside work is necessary for the construction industry, but workers need a place to take a break from the elements and warm themselves. It can be a heated trailer or a tent with portable heaters. Employers also should be sure supervisors and workers follow proper safety procedures with heating devices.

Construction workers have a dangerous job, especially during the winter. Make sure your crew is properly prepared for the extreme temperatures, snow and ice this winter. For more information and guidance on this topic, please review the resources from OSHAand CPWR, The Center for Construction Research and Training

Cyber risk insurance: New coverage for emerging risks

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It seems you can’t turn on the news without hearing about a cyber-related crime or incident.

Criminals are increasingly using ransomware as a means of extortion. Ransomware is a form of malware, usually delivered by email phishing scams, that locks victims out of their critical data until they pay the criminals a fee. The FBI received more than 2,400 complaints about ransomware in 2015, with a reported loss of more than $24 million. Authorities believe the actual costs could be much higher because the crime is underreported. The Department of Justice estimates that these ransomware attacks now average 4,000 per day – that’s a 300 percent increase over 2015.

Headlines usually describe breaches of sensitive customer data suffered by large, well-known companies. In reality, most cyber-attacks are not high-profile cases but softer targets, such as small- to medium-size operations. No business or industry is immune to cyber risks. Lost or stolen mobile devices, improper disposal of paper records or deficiencies in system malware protection can lead to a breach or attack.

The good news is that insurance coverage is available that can be tailored to protect your business from cyber risks.

DATA BREACH PROTECTION

Small- to medium-sized businesses should consider coverage for:

response expenses, including forensic IT and legal reviews, notification to affected individuals, public relations expenses as well as fines and penalty coverage
third-party defense and liability
identity theft recovery
protection from computer attack on your network, including data restoration and re‑creation costs, system restoration expenses, loss of business income and public relations services
network security liability in case there is a breach of third-party business information, unintended spreading or forwarding of malware or a denial of service attack

CYBER DEFENSE PROTECTION

If your business stores large quantities of sensitive information, for example, financial institutions, health care organizations or schools, ask about cyber defense coverage which may include:

cyber extortion coverage
electronic media liability coverage
access to online risk management and educational resources

STEPS YOU CAN TAKE

With or without insurance coverage, you can take steps help prevent loss:

  • encrypt data
  • patch system vulnerabilities
  • shred sensitive documents
  • educate your employees on topics such as email phishing scams
  • develop and test contingency plans

    Speak to your  Ayres Group agent about the coverages that are right for you.