Such incidents constitute a data breach because they result in sensitive information in the hands of the wrong people. When a data breach occurs, there is a ripple effect that begins with the hassle of notifying those whose security was compromised and carries over into long-lasting damage to a company’s reputation and potential loss of business. In most instances, a company is required by law to take action or face potential civil litigation and other penalties.

Naturally, some businesses have more reason to be concerned than others – those who routinely keep sensitive client or patient data on file, for example. But if you think you could never fall prey to a data breach, simply because your company doesn’t maintain such information, you’d better think again. Most any client, customer, or employee data can be vulnerable – credit/debit card information, social security numbers, dates of birth, drivers’ license numbers, or email addresses. If you do something as simple as conduct employee background checks as a routine part of your recruiting process, chances are good you have sensitive information on file.

It’s not just the Fortune 500 who need worry either. Out of 760 data breaches analyzed in 2010, two-thirds involved businesses with fewer than 100 employees, according to Verizon Business. As a result, a number of insurance carriers, including The Hartford, have expanded their portfolios of cyber risk coverage to include data breach coverage designed specifically for small businesses.

The Hartford’s coverage provides coverage for expenses and legal liability resulting from a data breach. It also provides access to services to help business owners address customer concerns and comply with regulatory requirements. The Hartford’s data breach coverage includes first party coverage, which covers costs incurred by the company when responding to state-mandated actions, as well as PR activity necessary to preserve brand and reputation. This includes legal and forensic services, notification expenses, crisis management, and good faith advertising expenses.

The Hartford’s offering also includes third-party insurance coverage, which covers defense and liability-related costs incurred as a result of the data breach. These include civil awards, settlements, or judgments, as well as any legal costs the company incurs in the course of defending itself.

Finally, The Hartford’s data breach coverage provides access to a secure “breach preparedness” web site featuring easy-to-understand tips and guidelines to help your company mitigate the chances of suffering a data breach in the first place.

For more information on data breach coverage or answers to any other risk-related questions, contact The Foley Insurance Group. We have the knowledge and experience to help you make the right decisions to protect your business.

• In Connecticut, a woman who lost her fiancé in last year’s workplace shooting spree at Hartsford Distributors in Manchester is now considered a member of his family in a precedent-setting ruling in a Workers Compensation case. In what has been branded a decision that could shape legal notions of what constitutes a family, Middletown Workers Compensation Commissioner Daniel Dilzer ruled that Stephanie Laurin is entitled to fiancé William Ackerman Jr.’s Workers Compensation benefits even though they had not yet married. Legal experts say the decision reflects changes in social views about what constitutes a family, as well as the healing purpose of the Workers Comp statute.
• Florida Workers Compensation rates are expected to increase as of January 1st, 2012, once a filing by the National Council on Compensation Insurance (NCCI) receives approval from the Office of Insurance Regulation (OIR). Citing increases in claim frequency during 2009 and 2010, NCCI requested an 8.9 percent rate hike. Even with the increase, Florida would still have the lowest Workers Compensation rate in the Southeast and rank among the 20 states with the lowest rates nationwide, NCCI claims.
• Also in Florida, the Jacksonville Jaguars and the Orlando Magic led the charge to change the state’s Workers Comp law to prevent workers who are injured while temporarily working in another state from pursuing a claim in that state. The reason for the teams’ involvement is simple: Although the Jacksonville Jaguars have only played five games in California stadiums since their inception in 1995, 95 percent of their injured players have filed for benefits in that state, which boasts the most liberal Workers Comp benefits. Florida employers will benefit from the legislation in that Workers Comp claims by employees injured in the course of employment in another state (for short term travel of under 10 days duration or less than 25 days total over the course of a year) will be handled as if the injury occurred in Florida.
• A Missouri appeals court ruled that a law mandating the reduction of a Workers Compensation award by 25 to 50 percent when the injured employee fails to follow an employer’s safety instructions is constitutional. Critics charge that the court could inadvertently be encouraging employers to look for fault on the part of workers. The law also allows for a 15 percent increase in benefits when the injury is caused by an employer’s failure to comply with a state statute or order from Missouri’s Labor and Industrial Relations Commission.

For assistance sorting out changes to Workers Compensation law that may affect you, contact The Foley Insurance Group. We have the knowledge and experience to help you make the right decisions to protect your business.

Insurance for hurricane perils are frequently misunderstood, with many policy holders falsely believing they are covered for any and all damages resulting from the storm. What they fail to understand is that most insurance for hurricane perils covers damage from hurricane rain and winds, but not from related flooding.

Insurance for hurricane perils covers downhill water (i.e. rain), but rising water is considered flooding and thus not covered. In the wake of Irene, many homeowners were shocked to discover that hurricane insurance did not cover damage sustained due to basements full of water. Only those with flood insurance were covered for such losses.

Flood insurance is available through the federally-run National Flood Insurance Program (NFIP) and can be purchased through Foley Insurance Group. Premiums vary depending on whether the property in question is located in a moderate-to-low or a high risk area. Not surprisingly, coastal areas are considered “high risk” and carry a higher premium. The average annual flood insurance premium was $594 in 2010, according to the Insurance Information Institute.

Homeowners also frequently fail to understand that many policies carry a special “hurricane deductible” in 19 states, including much of the eastern seaboard. While homeowners insurance typically carries a flat deductible, a hurricane deductible is based on a percentage of the home’s insured value. A house insured for $200,000 may have a 2 percent hurricane deductible, which means that the homeowner is responsible for the first $4,000 in repair costs, after which the insurance company pays the rest of the claim.

When shopping for hurricane insurance, don’t use the fair market value of your house as the basis for how much coverage to buy. That price includes the value of your land, which is unlikely to be affected by the storm. Instead, insure the structure for the cost of rebuilding or replacing it. And don’t forget to add flood insurance to your policy. While a hurricane may be the furthest thing from your mind, it’s best not to wait until storm clouds begin to gather. As many of Irene’s victims discovered, that’s too late to take action.

Our recent post aabout earthquake zones in the US illustrated the parts of our country that are most likely to be affected by a quake. While residents of California and other quake-prone areas have come to accept the fact that the ground could begin to shake at any time, people in other parts of the country rarely consider the potential for a major earthquake to strike where they live and work. However, areas in Nevada, South Carolina, Alaska, Hawaii, New England, and the Midwest also are at an elevated risk for earthquakes.

Despite the widespread potential for earthquakes, the majority of homeowners insurance policies don’t cover earthquake damage and loss. In order to protect your home and possessions from a quake, you must add special coverage to your policy. Banks holding mortgages don’t require earthquake coverage, so people living in areas that are not typically considered high risk often don’t even consider adding it. When the East coast quake hit, less than 5 percent of homeowners in that region carried earthquake insurance. That is indeed unfortunate. For many people, their biggest investment is their home. A catastrophic event, like an earthquake, can be devastating to them financially if they haven’t taken measures to protect themselves.

Businesses also are at risk. Even if a company carries Business Interruption coverage, the policy doesn’t engage if earthquake coverage isn’t included in the policy. However, the time to go shopping for earthquake insurance is not right after Mother Nature unleashes her wrath. Following a quake, many companies put a moratorium on such coverage due to the potential for aftershocks. Thus, the time to protect yourself is before a quake hits. As a cost barometer, in most instances, given a replacement cost limitation on a dwelling of 300,000.00, earthquake coverage can be added to a policy in the Northeast  for well less than a hundred dollars a year.

For assistance selecting the right coverage for your home or business, call Foley Insurance Group today. We help individuals and companies create comprehensive coverage plans to safeguard their family and business investments.

The majority of states use the classification system devised and maintained by the National Council on Compensation Insurance (NCCI), an independent advisory organization. It consists of approximately 700 different classification codes and definitions, which are published in the so-called Bible of workers comp class codes, the “Scopes Manual.” Because it is copyrighted material, this information can only be purchased from NCCI either in print form or via on-line subscription. Several states – California, New Jersey, New York, Delaware, and Pennsylvania – do not use the NCCI classification system, opting for their own classification systems instead. While Texas licenses most of the NCCI system, it varies significantly with regard to specific classification rules. Many other states maintain “state special” classifications that vary from NCCI’s definition for certain workplace exposures.

Determining the appropriate class codes is a difficult and cumbersome process. There are specific rules pertaining to classifying employees and placing them in workers comp class codes. Misclassifications happen all the time. Incorrect classification results in premiums that are too high or lower premiums that will be reclassified during an audit, resulting in a large audit bill. Class codes are assigned or modified by insurance agents, insurance company underwriters, insurance company auditors, or a representative of the NCCI or other advisory organization.

Mistakes are often discovered during a workers comp code review. Unfortunately, fixing an incorrect code is easier said than done. To resolve the issue, contact your insurance agent. If they are unwilling to change the code(s) in question, contact the insurance company directly. The underwriter will review your workers comp codes for accuracy. If you still don’t get anywhere, you can appeal the code to your state’s advisory organization. The NCCI may inspect your workplace to determine the proper workers comp class codes. This inspection comes at a cost, however, which can be quite substantial. To discuss workers compensation or any other facet of your company’s insurance needs, contact The Foley Insurance Group. We’ll help ensure you are properly protected.

Employers must be vigilant in identifying suspect claims, as they not only cost the company financially, but also slow down the processing of legitimate claims.

Here are a few things to watch for that may tip you off to a fraudulent claim:

• Monday Morning Claims: The injury supposedly occurred late Friday, but the employee doesn’t report it until Monday.
• No Witnesses: The employee claims to have been hurt on the job, but no one can back up their story.
• Lack of Medical Treatment: A truly injured person wants to get better, but the employee either refuses medical treatment or misses scheduled appointments.
• Shady Story: The devil is in the details, but the employee just can’t seem to get his/her story straight. They may give vague responses when questioned or keep changing their recollection.
• Financially Unstable: The claimant is known to be undergoing a period of financial hardship, has a history of job-hopping, or large gaps in their employment history.
• Suspect Providers: The employees’ doctors and/or lawyers are known for being involved in suspicious workers compensation claims.
• Disgruntled Worker: The supposedly injured employee has been demoted, reprimanded, or has some other reason to be upset with the company.
• Difficult to Reach: The claimant is supposedly laid up with their injury, but you have a hard time reaching them.
• History of Claims: The employee has previously been involved in numerous, suspicious or litigated workers compensation claims.
• Uncharacteristic Activities: An injured person will avoid doing things that may inflict further pain, but the claimant is observed working on their roof, carrying heavy furniture, or engaging in other behavior that would not be in line with the kind of injury they supposedly incurred.

It’s important to note that individually, these signs may mean nothing. If you detect two or more in the same claim, however, there may be something fishy going on.

For assistance with workers compensation issues, contact The Foley Insurance Group.

• Analysis of industry trends in workers compensation costs
• Workers compensation insurance rate and loss cost recommendations
• Cost analysis of proposed legislation regarding workers compensation regulations and benefits
• Special claims research projects
• Analysis of judicial and regulatory decisions on workers compensation
• Cooperation with other data collection agencies to ensure a credible database

The organization also undertakes a variety of special studies and data collection initiatives, including special claims research projects, cost analyses of judicial and regulatory decisions, monitoring newly enacted laws and regulations, and partnering with other data-mining organizations to ensure a statistically credible database on which to base these analyses.

Operating as a not-for-profit since 1922, NCCI studies workplace injuries and other facets impacting workers compensation. It issues reports to workers compensation insurance companies, state workers compensation funds, regulatory bodies, employers, and non-governmental workers compensation agencies. The information is then used to determine policy changes, as well as rate increases and decreases.

A leading publisher of workers compensation information, NCCI publishes an annual Issues Report, as well as compendiums of workers compensation statistics, scholarly monographs, guides for reporting workers compensation data, and numerous manuals used to govern how workers compensation premiums are calculated in many states. The Basic Manual establishes rules with regard to the classification code system and payroll amounts used to compute premiums; the Experience Rating Manual details rules governing the computation of Experience Modification Factors; and the Scopes Manual lays out how workers compensation classification codes should be assigned.

NCCI also operates a Customer Service Center, responding to 50,000 e-mails and nearly a half-million phone calls each year. Its 70-person staff is trained to field questions on a wide variety of topics, including rates, manual interpretations, item filings, experience ratings, along with questions related to its own products and services.

In addition to its Florida headquarters, NCCI has regional offices throughout the United States. A 15-member Board of Directors, consisting of representatives of affiliated insurers and outside organizations, oversees its activities. For more information, visit www.ncci.com or contact us here at Foley Insurance.

Software, on-board cameras, accelerometers, and GPS help alleviate potential liability issues by revealing forbidden behaviors, such as texting, cell phone use, and other conduct which can then be addressed. Such innovations contribute to safer, more efficient transport by reducing accidents, increasing productivity, mitigating hazards, reducing travel time, and helping avoid delays and congestion. They also provide critical data with regard to the cause of an accident or other loss, which will provide valuable guidance about how a claim should be handled.

Use of transport telematics is widespread, with nearly 80 percent of commercial trucking fleets relying on the technology for real time traffic and travel information related to driver behavior, fuel efficiency, and vehicle performance. Usage in cars, vans, and other consumer vehicles is increasing as well. Auto companies are building such technology into their vehicles and adding platforms capable of interacting with mobile telematics technology already present in smartphones.

The price of such technology has decreased dramatically and the potential for a massive return on investment is huge. In addition to the obvious cost savings, the information provided is invaluable when it comes to ensuring that a company’s drivers are conducting themselves safely. Data can be aggregated, giving the employer the ability to zero in on a particular driver or route. By creating and tracking safety scores over time, they can monitor drivers’ progress and reward them for moving in the right direction.

For more information about transport telematics or to discuss your company’s potential liability or insurance needs, contact The Foley Insurance Group.

Flood is one of the most costly natural disasters an individual, family, or business can encounter. Even a minor flood has the potential to cause significant damage. Unfortunately, many businesses and home owners turn a blind eye to the risk and choose not to carry flood insurance. In reality, such coverage would ensure that they have the funds to rebuild should they ever find themselves impacted by flood waters.

What can you do to gauge your exposure and prepare?

1. Do your research. Visit the National Flood Insurance Program website for an interactive risk assessment tool that will help you assess your flood risk and review an estimated premium cost.
2. Prepare your home or business. While it’s not possible to avoid a flood, you can reduce your chances of suffering significant physical losses. Move valuables, key documents, and sensitive equipment upstairs, if possible. Place other treasured or important items on shelves or platforms to keep them out of flood waters’ reach.
3. Develop an emergency plan. Prepare a safety kit, containing drinking water, canned food, first aid supplies, blankets, a radio, and a flashlight. Practice a flood evacuation route and create a “flood file,” containing copies of insurance policies and other key documents.
4. Make sure you have proper coverage. Flooding is not covered by standard residential or commercial property insurance policies. To protect your home or business from flooding, you must purchase a separate flood policy or flood endorsement.

Have questions about flood insurance?
At the Foley Insurance Group, we help individuals and companies create comprehensive coverage plans to safeguard their family and business investments. If you have questions about your risk or coverage for natural disasters, please contact us today.

California isn’t the only state that is at an elevated risk for an earthquake.

While a majority of California is at an elevated risk for an earthquake, many other parts of the country are as well.  The most recent United States Seismic Hazards Map shows that areas in Nevada, South Carolina, Alaska, Hawaii, New England and the Midwest are at an elevated risk as well.

What can you do to gauge your exposure and prepare?

1. Do your research.
   Visit the USGS website for a collection of outstanding resources that show quake activity, hazard levels, and free earthquake notifications.   They also offer earthquake information for each state.
2. Prepare your home and your family.
   Do you know what to do before, during and after an earthquake?  The USGS and FEMA offer some great tips and refreshers to make sure your home and family are prepared in the event of an earthquake.
3. Prepare your business.
   It’s extremely important for business owners to protect their employees and their business in the event an earthquake.  A great starting point is to download the “7 Steps to an Earthquake Resilient Business” ebook.
4. Make sure you have proper coverage.
   Most ordinary homeowners insurance policies do not cover earthquake damage and loss.  If you are in an area with an increased quake risk, talk to your insurance provider about your policy’s coverage and options for both your home and business.

Have questions about earthquake insurance?

At the Foley Insurance Group, we help individuals and companies create comprehensive coverage plans to safeguard their family and business investments.  If you have questions about your risk or coverage for natural disasters please contact us today at 877-403-6539.