Insights: Have you reviewed your Term Life Insurance lately?

Commercial Insurance Solutions

Is a Cyber Liability loss lurking around the corner? If you use any technology in your business, you are exposed!

The experts, most of them over 50, say 50 is the new 40! Well in the world of lawsuits, Cyber Liability is taking over as the new guy in town from where Employment Practices Liability (EPL) was a few years back. Lawsuits from EPL skyrocketed and that led to an active insurance market for insurance policies to protect from the exposure. Now, Cyber Liability suits are building on a daily basis and many Law Firms are building special practices to handle these incidents. Here’s a quick primer on Cyber Liability and what it means to your business and you:

Who can orchestrate a Cyber Liability breach?

  • The Outside Hacker, a malicious breach – the classic example where the bad guys come in and steal data from some remote website anywhere in the world.
  • The Rogue Employee – it could be revenge, “sport” or a misguided conscious, but one of your employees, or a former employee, could steal company data or sabotage equipment.
  • The Third Party Vendor – it may not be your employee but an outside vendor you hire who is doing the attacking. They typically have total access to codes, passwords and all the secret stuff many business owners entrust them to manage. They also frequently outsource portions of their jobs to outside third parties.

How can this cost my business money?

  • Obligation to Notify – there are now more than 40 states that require companies to notify customers who may be affected by a security breach. They also can require your business to provide years of credit monitoring services. Costs to comply with these regulations can range from $10 to $300 per record. How many individual client records do you have in your systems?
  • Business Interruption – The breach could cripple your business for days, weeks or even months. This is a classic P&C coverage but only for Perils covered by your policy. Cyber Liability claims are not covered under a wide majority or policies currently in force.
  • Clients’ Data Compromise – If a third party obtains your clients’ data and does harm, you could be liable.
  • Virus Transmission to clients and/or vendors – if a virus emanating from your systems affects third parties, you could be found liable.

Coverage is available for Cyber Liability exposures for First & Third party claims as well as coverage that covers the cost of Notification.

Personal Insurance Solutions

Are you covered by a Personal Umbrella? This Small Investment provides significant protection.

A Personal Umbrella policy, sometimes referred to as an Excess Liability policy, adds a layer of protection beyond the liability provided by your home, auto or boat insurance. In simple terms it protects against a Balance Sheet Catastrophe to your household. Coverage is provided in increments of $1,000,000. Most financial professionals recommend limits that are in the vicinity of your net worth under the principle that you should protect what you have the potential to lose.

While our counsel is that everyone should purchase an Umbrella Policy, you are particularly exposed if you …

  • Own or use a boat, personal watercraft or recreational vehicle – don’t assume your friend’s insurance will protect you! Also, beware of restrictions on any things you rent whether for a day or a month.
  • Own a swimming pool or have a pond on your property.
  • Have a dog no matter how friendly you may think they are.
  • Have a young or inexperienced driver in the family.
  • Are concerned about Social Media issues. There was a recent example of a daughter making several “disparaging” comments about her teacher on various websites and the parents being sued for and losing $750,000!
  • Are a coach or volunteer – every coach has had the parent whose child was destined for greatness in one particular sport. Well, one set of parents recently sued their child’s softball coach for $700,000 alleging “incorrect” teaching ruined her athletic scholarship chances!

A $1,000,000 Personal Umbrella can cost as little as $250, a small price to pay for the peace of mind it brings to your balance sheet. Talk to our team today and make sure you’ve protected your family assets!

Life & Long Term Care Insurance Solutions

Have you reviewed your Term Life Insurance lately? An Annual Review might yield surprising results!

Term insurance rates are at historically low levels. If you are in good health, or better than you were when you initiated your policy, it just might pay off to review what you have.

Our team has seen many examples in the past few months where clients who are only five to ten years into a twenty or thirty year term policy have been able to secure new coverage at the same or lower premium. They also get the benefit of an additional five or ten years of coverage. Competition has heated up and you can benefit from this environment.

Make it a point to do an Annual Review of your Term Policies or give our professionals a call if we can help you through the process.

Group Benefits Insurance Solutions

Health Reform Update – Interim Rules for dependent coverage of children under age 26.

On May 10, 2010, the Internal Revenue Service, U.S. Department of Labor and the U.S. Department of Health and Human Services issued interim final rules for group health plans and health insurance insurers relating to dependent coverage of children to age 26 under the Patient Protection and Affordable Care Act (the “Act”).

  • The rules generally apply to group and individual health plans for plan years beginning on or after September 23, 2010 and applies to both insured and self-insured healthcare plans and to all group healthcare plans and health insurance issuers offering group or individual health insurance whether or not such coverage qualifies as a grandfathered health plan (coverage existing as of March 23, 2010.)
  • The rules clarify that, with respect to children who have not attained age 26, factors such as financial dependency, residency, student status, employment, or eligibility for other coverage cannot be used to deny coverage. Plans cannot exclude coverage irrespective of whether or when a child was enrolled in a plan and became ineligible because of age but transitional coverage for a child is available where coverage ended or was denied because of age.
  • Plans cannot deny or limit coverage based on whether the child is married. However, a plan is not required to cover the spouse of the eligible child, or the child’s children.
  • Surcharges for coverage of eligible children are not allowed except where surcharges apply regardless of age and plan benefits cannot vary based on the age of the child.

For Further Information click on the link for a Fact Sheet. Link to the US Department of Labor site

Featuring our Clients and Employees In the News!

Partner’s Son Featured in the NJ Star Ledger! Daniel Wilson was the High School Golfer of the Week!

It looks like insurance consultation isn’t the only thing Bruce Wilson does well! Dad has coached his son, Daniel, for years on the golf course and it looks like it’s paying off!

Click here to see New Jersey Star Ledger article.

All insurance policies are different. Be sure to review your insurance policy for specific information about coverages available to you. Nothing in this post is meant to suggest a guarantee of coverage.