Cyber Risks and Insurance

September 20, 2016 | Leave a Comment

With the enormous amount of sensitive information stored digitally, companies need to take the proper measures to ensure their data is never compromised.

Every business has an assortment of data of varying value. From sales records to health and medical records, it is the responsibility of business owners to safeguard this information and educate employees to recognize risks online. Failing to do so can result in a data breach, which can ultimately cost the company a significant amount of money as well as jeopardize the operations of the business. The Ponemon Institute found that average annual losses to companies worldwide now exceed $7.7 million – and that number is growing every year.

Hackers and unauthorized individuals have become adept at exploiting weaknesses in a business’ computer system. There are several types of attacks that occur, including:

  • Malicious code that can render your website unusable
  • Viruses that infect or delete valuable information
  • Installed spyware to steal information and passwords
  • Phishing emails that may disclose personal information

With all of the data breach exposure a company now has, cyber liability insurance has become just as important has traditional insurance coverage. Although it is a relatively new product in the insurance marketplace, most carriers will offer a limited cyber liability coverage extension. Typically inadequate to meet the exposure needs, we recommend placement with carriers that specialize in the cyber liability space.

These policies are sold under a number of different names and include various coverages. Possible exposures covered by a typical cyber liability policy may include the following:

  • Data breaches
  • Intellectual property rights
  • Damages to a third party system
  • Internal system failures
  • Cyber extortion
  • Notification costs
  • Business interruption

As the risk of exposure and the nature of cyber threats have evolved, so have the various policy forms. Contact your Cornerstone representative to evaluate suitable coverage for your firm.

Written by: Rodney Ragsdale, vice president, The Cornerstone Insurance Group

Posted in Blog, Commercial, Cyber Liability, Risk management, Safety | Tagged  , , ,

OSHA’s Top 10 Violations and How to Avoid Them

September 08, 2016 | Leave a Comment

On Aug. 1, the Occupational Safety and Health Administration increased penalties or the first time in more than 25 years. As a catch-up, the adjustments were very significant – an 80% increase! As OSHA is now required to increase penalties annually, workplace safety is more important than ever.

Here is a list of 10 of the most common workplace violations:

  1. 1926.501: Fall Protection (Construction standard)
  2. 1910.1200: Hazard Communication
  3. 1926.451: Scaffolding (Construction standard)
  4. 1910.134: Respiratory Protection
  5. 1910.147: Lockout/Tagout
  6. 1910.178: Powered Industrial Trucks
  7. 1926.1053: Ladders (Construction standard)
  8. 1910.305; Electrical, Wiring Methods
  9. 1910.212: Machine Guarding
  10. 1910.303: Electrical, General Requirements

OSHA Violations and Safety Risks     cone-88240_960_720

By identifying some of the most frequent hazards that occur on the worksite, this list can be used as a guideline for identification of job site risks and how to improve common safety mistakes.

To understand more about these violations, how to identify them, and how to fix errors and prevent incidents on the worksite, watch our latest webinar. Click here to watch the webinar recording and learn more about the top 10 OSHA violations.

Written by: Tom Scherrer, CSP, CFPS, loss control specialist and consultant for The Cornerstone Insurance Group

Posted in Blog, Commercial, Legislative Alerts, OSHA, Risk management, Safety | Tagged  , ,