BeNew Insurance

Cyber Extortion Cyber extortion is an internet crime in which someone holds electronic files or your business data hostage until you pay a demanded ransom. Cyber extortion is an online crime in which hackers hold your data, website, computer systems, or other sensitive information hostage until you meet their demands for payment. It often takes the form of ransomware and distributed denial-of-service (DDoS) attacks, both of which could paralyze your business. How does cyber extortion work? Cyber extortionists have several common techniques for breaking into your computer hardware, software, and networks and incapacitating them until you pay a fee. One tactic is ransomware, which involves a hacker tricking one of your employees into clicking on a link or file within an email message. This activates the ransomware, which spreads throughout your network, encrypting your servers and data so you can’t access applications and files. The only way to restore access is to pay the hacker fo...

Occurrence-Based Insurance Policy Occurrence-based insurance is a type of policy that pays for losses that occur during the policy period, even if it’s no longer active when you file a claim. An occurrence-based policy covers losses that happen during the time you have the policy, regardless of when you file a claim. It is designed to protect you against long-tail events incidents that could cause injury or damage years after they occur. For example, a chemical spill is a long-tail event because it often takes decades to produce visible injuries or disease. Occurrence-based policies will protect you against such events even if: -Many years pass before injuries or damages become known. -You have switched to another insurance policy or insurer. -You have canceled your insurance and not replaced it with another one. Common occurrence-based insurance policies; Insurers typically use occurrence-based policy forms for general liability, umbrella liability, and commercial auto insurance...

Equipment Breakdown Coverage Equipment breakdown coverage is a form of commercial insurance that provides funds to repair or replace damaged machinery or equipment that has suffered a mechanical or electrical failure. Equipment breakdown coverage is insurance that protects your company’s computers, electrical systems, production machinery, and other equipment from sudden and accidental malfunctions. It’s designed to cover losses such as short circuits, loss of air pressure or vacuum, or power surges that commercial property insurance typically excludes. Is equipment breakdown coverage the same as boiler and machinery insurance? Equipment breakdown coverage is a newer form of coverage than boiler and machinery insurance, which was introduced when steam boilers were a major source of industrial power. Today, businesses rely on electricity to run a much broader range of equipment, which equipment breakdown coverage is designed to protect. What Types Of Equipment Does This Coverage ...

Invasion Of Privacy Invasion of privacy is the violation of a person’s freedom to control their image and be left undisturbed in private spaces and conversations. Invasion of privacy is the intrusion of an unwanted individual or business into the private affairs of a person without consent. It’s one of the insurance risks for small businesses covered under the personal and advertising injury section of a general liability insurance policy or with professional liability insurance for some professions. How Can You Protect Yourself Against Invasion Of Privacy Charges? Several liability insurance policies provide coverage for invasion of privacy, including: -General liability -Directors and officers liability -Professional liability -Employment practices liability Make sure you have coverage for invasion of privacy claims in your liability insurance policies. Having an insurance safety net against privacy-related lawsuits will not only give you peace of mind, but it will also save yo...

General Liability Class Codes General liability class codes are used by insurers to classify small businesses according to the risks they face. They help insurers determine the correct price to charge customers for general liability insurance. General liability class codes are numbers that represent small businesses that do similar work and share common hazards. Using research, insurers can predict the losses companies in each code will experience over time. This helps them set an appropriate general liability insurance premium for those businesses. How are general liability class codes different from workers’ compensation class codes? General liability class codes and workers’ compensation class codes are similar in that they both classify businesses by risk to help insurers charge an accurate premium. However, they can only be used for their specific insurance product. For example, an insurer can’t use the NCCI workers’ compensation codes to generate premiums for general liabil...

Qualifying Event A qualifying event is any change in your business situation that affects your needs for insurance. A qualifying event is a change in your company’s situation that allows you to request policy modifications ahead of your next policy renewal. However, you must report these changes within two months of the event to be allowed to change your policy before its renewal. Insurance qualifying events are important because they allow you to request coverage changes without waiting for your next policy renewal. If your business changes and you don’t update your insurance coverage, you could be exposed to risk. What Are Some Common Qualifying Events? Your business could experience a qualifying event when it adds products or services, hires new employees, expands, or moves to a new building. Other examples of potential qualifying events include: -Changing ownership structure, such as moving from sole proprietorship to a limited liability corporation -Adding a new partner or...

Stop Gap Coverage Stop gap coverage provides employer’s liability insurance when it’s not included in a workers’ compensation policy. The term stop gap coverage, or a stop gap endorsement, refers to an employer filling a gap in workers’ compensation insurance by purchasing an additional policy. Stop gap coverage protects business owners from lawsuits filed over workplace injuries. Business owners are protected from such lawsuits by employer’s liability insurance, which is typically included in workers’ compensation coverage. Stop Gap Coverage Details Stop gap coverage provides protection against allegations that an employer has not provided a safe work environment. While workers’ compensation pays for job-related injuries, employer’s liability is a separate clause of the policy. It protects the employer from being held liable for worker injury or illness. A workers’ compensation policy from a monopolistic state fund does not include the part of the policy dealing with employer ...

Disaster Recovery Plan A disaster recovery plan is a set of procedures and steps to protect businesses and aid in recovery after a natural or man-made disaster. A disaster recovery plan (also known as a business recovery plan) is an essential document for all small businesses. It helps business owners respond effectively to a catastrophic event, safeguarding business assets and re-establishing operations as quickly as possible. The plan should be highly detailed and practical, showing you exactly what to do after a disaster takes place. A disaster recovery plan and business interruption insurance are crucial resources for companies in the aftermath of a disaster What role does insurance play in a disaster recovery plan? A key part of disaster recovery planning is reviewing your business insurance to make sure you have adequate coverage for the costs of remediating a disaster. An important insurance policy to consider is business interruption insurance. It provides cash to repla...

Contingent vs. Regular Interruption Insurance Regular business interruption insurance coverage provides financial assistance for ongoing expenses when a fire, burglary, or other covered event disrupts your business. To qualify, the incident has to immediately affect your business. Contingent business interruption kicks in when a supplier, business partner, or large customer has a similar problem. It pays for ongoing expenses while you search for a new supplier, partner, or major customer to restore lost sales. In other words, it provides a stopgap while you look for a solution to keep your business open. How do you know if you need this form of insurance? The answer depends on how reliant your business is on key vendors, business partners, or customers. Common factors to consider Consider contingent business interruption insurance if: -You depend on one or several manufacturers to provide the products you sell. -The main product you manufacture relies on only one or a few suppli...

Indexation Clause An indexation clause, also known as an inflation clause or stability clause, is a provision in an insurance contract that adjusts the coverage limits or retention levels over time to account for inflation or other economic factors. This clause is particularly common in long-tail reinsurance contracts, where claims may take many years to settle. Application of an indexation clause: -Index Selection: An appropriate index is chosen to track inflation or other relevant economic factors. This might be a consumer price index (CPI), a wage index, or a specific industry index.   -Adjustment Formula: A formula is established to determine how the coverage limits or retention levels will be adjusted based on changes in the index.   -Periodic Adjustments: The coverage limits or retention levels are periodically adjusted, usually annually, to reflect the changes in the index. Importance of an Indexation Clause: -Protecting Reinsurer's Interests: Without an indexation cl...

Contingent Business Interruption Insurance Contingent business interruption is a form of small business insurance that provides financial assistance when the loss of a primary supplier, partner, or customer affects your ability to do business. Contingent business interruption coverage can help your business if you lose significant revenue and are unable to continue to do business after a key supplier, business partner, or customer shuts down. It’s a form of small business insurance that is typically added as a rider to a business interruption insurance policy. It provides cash to help you cover payroll, rent, and other expenses necessary to keep your business open. As with business interruption insurance, the closure typically must be related to a commercial property insurance claim. Businesses that need contingent business interruption insurance: -An IT staffing agency that generates 80% of its revenue from one client -A print media publisher that relies on a single print compa...

Actual Cash Value Vs Replacement Value Actual Cash Value (ACV) and Replacement Value are two methods used by insurance companies to determine the value of damaged or lost property. Understanding the difference between the two is crucial when filing a claim. When choosing business personal property insurance, you may have a choice between insuring items for their actual cash value or their replacement value. Basically, the actual cash value is an item’s current market price, with depreciation taken into account. The replacement value is the cost of buying a brand-new replacement for a lost or damaged item. Replacement value policies tend to cost more. You may also be required to repair or replace the item before seeking compensation. ACV is generally cheaper, it might not be enough to fully replace damaged or lost items. Replacement cost coverage provides better financial protection, but it comes with a higher premium. #BeNewinsurance #InsurTech #inclusiveinsurance #insurance #rein...

Business Personal Property Business personal property (BPP) commercial property insurance that covers the tangible assets of a business. It protects your business's physical property from various perils, such as fire, theft, vandalism, and natural disasters.It includes office supplies, furniture, computers, machinery and basically everything except for the building itself. Business personal property is also called business content. It includes everything from pens and other small items to computers and manufacturing equipment. The purchase of BPP is a tax-deductible business expense, and so is the cost of insuring it. BPP insurance typically covers: -Inventory: This includes products you sell, raw materials, and finished goods. -Equipment: Tools, machinery, and other equipment used in your business operations. -Furniture and Fixtures: Office furniture, desks, chairs, computers, and other fixtures. -Electronics: Computers, printers, and other electronic devices. BPP Insurance ...

Additional Insured In an insurance policy, an additional insured refers to anyone other than the policyholder who is covered by an insurance policy. Coverage might be limited to a single event or it could last for the policy's lifetime. Both individuals and groups can be given additional insured status, but their protection is more limited than the policyholder’s. The specifics depend on the policy. How does a blanket additional insured endorsement differ? An additional insured endorsement can be used to provide many different levels of coverage. A blanket additional insured endorsement provides the same coverage to all additional insureds. For example, on a commercial auto insurance policy, a blanket additional insured endorsement provides the same coverage for any driver of your company vehicle. It's a common feature of many liability policies. When To Add An Additional Insured To A Policy New clients or partners may ask to be included as additional insureds in your ins...

Business Owner’s Policy A business owner’s policy (BOP) is defined as the combination of two important forms of insurance commercial property and general liability into one convenient package. Business owner’s policies usually cost less than buying the two coverages separately. A business owner’s policy combines general liability and commercial property insurance coverage to protect you against lawsuits and damages. In one convenient package, it covers several major lawsuit risks your small business could face, including those resulting from: -Third-party bodily injuries -Third-party property damage -Product liability incidents -Advertising injuries Business owner’s policies also provide financial support when your building or commercial property (also called business personal property) is damaged by an incident the policy covers, typically: -Fire -Theft -Vandalism -Some weather-related events In addition to providing a financial backstop for your small business, a BOP also gives ...

Proof Of Loss A proof of loss is a formal statement you must file with your insurer requesting benefits be paid to you after a covered incident. A proof of loss is a formal document you must file with an insurance company that initiates the claim process after a property loss. It provides the insurer with specific information about an incident its cause, resulting damage, and financial impact. Once the insurer has received the proof of loss, it can send you a check for repairing or replacing your damaged item if it is covered with your policy. Is proof of loss required for all types of insurance? YES, insureds must file a proof of loss form to receive benefits under a commercial property insurance policy. All forms of insurance have a similar process for notifying insurers when a loss occurs. Each carrier has a specific form or a preferred format but generally it will contain; -Date and time -Incident precipitating the loss (storm, flood, theft, death,etc.) -Property involved i...

Host Liquor Liability vs. Liquor Liability Host liquor liability insurance does not cover companies that manufacture, sell, or serve alcohol as part of their business operations, such as bars, breweries, and restaurants. Instead, businesses that sell or serve alcohol for profit would need to purchase liquor liability insurance to gain protection from lawsuits related to inebriated patrons who cause bodily harm or damage to others. What is social host liquor liability? Social host liquor liability refers to the liability individuals assume as a host if they hold a social gathering where alcohol is provided, but guests aren't paying for it. It covers individuals, not businesses, and is typically included in homeowner's and renter's insurance policies. If someone throws a party and a guest causes property damage or injuries to a third party after becoming intoxicated, social host liquor liability can pay for the host's legal expenses if a lawsuit is filed. Hosts can b...

Products-Completed Operations Products-completed operations is a form of insurance coverage that protects you from customer lawsuits alleging property damage or injury due to your product or completed service. Products-completed operations refers to your protection against product or services liability claims under a general liability insurance policy. The coverage is also part of a business owner’s policy. Lawsuits related to property damage and bodily injuries are common for small businesses. If a product or service at your business injures a person or property, you could face a lawsuit. General liability insurance covers such losses under the "products-completed operations" section of your policy. What Are The Benefits Of Products-Completed Operations Coverage? Products-completed operations coverage delivers many essential benefits, including: *Protecting company assets in the event a customer sues you to recover the costs of property damage or bodily injury *Preven...

Communicable Disease Rider Most business insurance policies exclude claims related to infectious diseases. A communicable disease rider extends a policy's coverage to fill this gap. What is a communicable disease rider? A communicable disease rider is also called infectious disease insurance. It expands an insurance policy’s scope of coverage to include losses caused by infectious diseases. It may provide blanket coverage for pandemics and other outbreaks, or provide coverage only for a specific disease like COVID-19 or Ebola. To get coverage for business interruptions, liability lawsuits, or property damage due to infectious disease, some providers may let you add a communicable disease rider to your insurance policy when you purchase or renew the policy. It may be difficult or even impossible to add the rider to an active policy. Insureon's partners do not offer this rider, but you may be able to find it through other carriers. Which insurance policies can include comm...

Host Liquor Liability Insurance Host liquor liability insurance helps cover alcohol-related incidents and liabilities for small businesses that serve alcohol. Host liquor liability insurance protects businesses that don't manufacture, serve, or sell alcohol from the cost of liquor-related lawsuits. It is designed to protect companies that are hosting a social event, such as a company party, where the company is furnishing alcohol to guests or allowing people to bring their own drinks. Host liquor liability is often included in general liability Example of host liquor liability in action: An advertising firm is hosting a holiday party in the office, and provides alcoholic punch and food for the staff. Jill, an account executive, has too much to drink at the party. She is starting to slur her words and have a hard time keeping her balance. She decides she's had enough and leaves the party to drive home. On the way, she runs a stop sign and broadsides another car, causing sub...