BUSINESS AND COMMERCIAL INSURANCE TOPICS

BY ALAN PLAFKER, PRESIDENT & CEO
MEMBER BROKERAGE SERVICE LLC
A MELROSE CREDIT UNION SERVICE ORGANIZATION

Is your business at risk?

Shall we play a game? Imagine you arrive at work in the morning to find the building locked up just as you left it. Everything appears normal until IT notifies you that your business has been the victim of a cyber attack overnight and all of your company’s files have been compromised. What do you do? Your first call would be to the police, but what about that second call? You want to call your insurance agent, but do you have coverage?

It has been said that there are two types of businesses in the world: those that have been the victim of a cyber attack and those that don’t know they have been the victims of a cyber attack. Recent studies on cyber attacks have shown that more than 40 million cyber attacks took place in 2014. Not surprisingly, cyber attacks occur more frequently in the U.S., than any other country in the world. Of the cyber attacks that occurred in the U.S. nearly a third were on private businesses.

Simply taking measures to prevent a breach by increasing the security surrounding your computer system is only the first step. You must also have a plan in place in the event that an attack is successful. To that end, it would be wise to look into protection in the form of a cyber-liability policy.

Among things that a cyber-liability policy covers is a business’s liability for a data breach in which the business customers’ personal information, such as Social Security or credit card numbers, is compromised or stolen by a hacker or other criminal who has gained access to the business’s computer systems.

The policies cover a variety of expenses associated with data breaches including:

• notification costs;
  
  
• credit monitoring;
  
  
• costs to defend claims by state regulators;
  
  
• fines and penalties; and
  
  
• loss resulting from identity theft;
  
  
• losses attributed to business interruption;
  
  
• data loss/destruction; and
  
  
• cyber extortion just to name a few.
  

There is no place to play games when it comes to protecting your business from cyber attacks. Not having a cyber-liability policy to protect your business in the event of a successful cyber attack attack could mean the death of your business.

Dig it!

You need to take some important steps before you start any construction project on your business’s property.

A labyrinth of underground wires, gas lines and pipes can exist below the property and even the smallest hole, for a fence, mailbox or landscaping, can cause a disruption of service if you don’t know where these utility lines are located. That’s why you should Call 811 (call811.com), which will send someone to mark the approximate location of your underground lines, pipes and cables that are buried around your business before you start any construction project.

Did you know that a utility company that provides a service is not responsible for all the damage and repair needed to maintain the electrical lines or pipes that are on your business’s property? Furthermore, there isn’t insurance coverage for either your business or any contractor you may call that will cover the cost of repairing damaged utility lines.

While there isn’t insurance coverage for utility lines there are plenty of insurance coverages for your business. We are happy to review your business’s insurance policies (e.g., commercial liability, business property damage and business owners policy, etc.) to make sure you have the best coverage for your business’s needs. And, don’t forget, If you are making improvements to your business you may need to update your current coverage limits. We can also discuss the types of policies the contractors you hire should have before you start the project.

Before you start a construction project at your business there are two calls you need to make: The first is to Call 811, and the second is to your insurance agency to make sure you have all the proper insurance coverages in place to protect your business.

Is your HVAC system ready for spring?

Spring officially has arrived. Now is the time to address the health of your HVAC system. The heating and air conditioning apparatus in your building needs regular maintenance almost as much as your customers and employees need fresh, clean air. Plus a well managed HVAC system is vastly more efficient than a leaky system. This means you can think of the repair costs as a small investment.

Like your car, seasonal tune-ups can help keep your HVAC system in tip-top shape, and you’ll probably want to find a trusted professional to schedule and perform maintenance. Also, with recent strides in energy efficiency, you shouldn’t hesitate to replace cheap, older parts before they break. While professionals do the heavy lifting there are some simple steps you can take on your own.

A clean system works smarter: Dust buildup reduces airflow, ultimately increasing the load on your entire system. Take care to clean your coils and replace your air filters regularly, but make sure to use only manufacturer recommended filters. It also pays to look for trouble before trouble finds you.

Perform regular inspections, checking duct work and piping for visible damage or leaks. You can usually repair a leaky duct with a little sealer, tape and insulation. Following these simple guidelines will keep your system healthy and your energy bill manageable.

Despite your best efforts, HVAC equipment will break. Is your business protected? Equipment breakdown insurance, also known as boiler and machinery insurance, can be purchased to cover mechanical or electrical breakdowns to your HVAC system and the potential business interruption that may result. Give your agency a call. We can review your insurance policy to make sure you have the insurance
coverage you need should your HVAC and other systems decide to take a spring break.

Buying insurance for your business? We can help.

Insurance is complicated. It’s your agent’s business to understand it, and explain it to you so you understand it as well. In most cases, a business owner will benefit from having a professional advise them. If there are any hidden surprises, we are the ones equipped to know where they will be found.

If you purchase your coverage from a direct writer, you have no licensed, regulated insured agent acting on your behalf. You are now taking full responsibility for your coverage decisions, and for any mistakes that may happen. No more safety net.

Even if you understand insurance, the industry is regulated on a state-by-state basis. Move from one state to another and you’ll find that the coverages may look the same at first glance, but on closer examination things could work a bit differently.
See firsthand why choosing an independent professional agent is the way to go. They’ll be happy to talk with you about all your insurance needs.

For more information talk to your Insurance Agent or the author of this article.

Your Professional Insurance Agent …
We want you to know about the insurance you’re buying.

Alan Plafker, CPIA is President of Member Brokerage Service LLC, a Melrose Credit Union Service Organization. He is a Certified Professional Insurance Agent and licensed Insurance Broker.

He serves as Immediate Past President of the PIANY (Professional Insurance Agents Association of NY), an active member of CIBGNY (Council of Insurance Brokers of Greater NY), and serves as Treasurer for the New York Independent Livery Driver Benefit Fund Board of Directors.

His Agency insures thousands of polices for TLC Insurance as well as many policies for all types of insurance. You can reach him in his Briarwood, Queens office at (718) 523-1300 Ext. 1082, or visit the website at: www.MemberBrokerage.com

© 2015 TLC Magazine Online, Inc.