| President Biden signed an executive order that the White House says is meant to promote competition in the American economy. The order includes 72 initiatives by more than a dozen federal agencies to tackle what President Biden says are some of the most pressing competition problems across the U.S. economy. Authorities still don't know what caused Champlain Towers South to give way last month in Surfside, Florida, killing at least 46 people and leaving more than 90 unaccounted for. But early leads point to cracked concrete and frequent flooding in the building's garage -- damage that apparently went unaddressed for years amid questions over how to fund repairs. Connecticut recently became the 19th state to legalize cannabis for recreational use after Gov. Ned Lamont signed legislation into law. On July 01, it became legal for adults 21 and older in Connecticut to possess up to 1.5 ounces of marijuana. However, it will likely be at least a year before the cannabis industry is up and running in the state, according to a report by NBC Connecticut. President Joe Biden on Wednesday discussed the possibility of responding to a spate of ransomware attacks against U.S. entities that are believed to be perpetrated by Russian-linked hackers, a growing concern for his administration. On July 2, the U.S. Court of Appeals for the Eighth Circuit delivered a ruling in the first appellate court case regarding pandemic-related business interruption coverage that is sure to be a blow to insureds nationwide litigating with insurers over denied claims. The Eighth Circuit ruled in Oral Surgeons PC v. The Cincinnati Insurance Co. that the lower court did not err in dismissing the suit brought by Oral Surgeons on the basis that it failed to plead any physical alteration to the property. Companies looking to purchase insurance against cyberattacks in which their data is held for ransom will soon find it more expensive and difficult to obtain, according to a cybersecurity expert. Brent Arnold, a partner at law firm Gowlings WLG in Toronto, said Canada is facing a proliferation of criminal attacks that use software to lock up corporate data that can only be released by paying a ransom to get an encryption key. The Allstate Corporation has announced estimated catastrophe losses for the month of June of $195 million, or $154 million after tax. Catastrophe losses for the second quarter totaled $752 million after tax, the company said. Robust global economic recovery, higher risk awareness and the strongest rate hardening for 20 years in non-life insurance commercial lines will combine to push premiums 10% above pre-COVID-19-crisis levels this year, creating a faster bounceback than from the global financial crisis, according to a report published by Swiss Re. The State Department will offer rewards up to $10 million for information leading to the identification of anyone engaged in foreign state-sanctioned malicious cyber activity against critical U.S. infrastructure — including ransomware attacks — and the White House has launched a task force to coordinate efforts to stem the ransomware scourge. When it comes to how they want to be engaged, more than 80% of consumers said they prefer texting with an insurance company or agent, according to a survey by Hi Marley Inc., which reported 80% of consumers feel insurance companies that text build closer customer bonds. With the housing market heating up during the past year, it isn't surprising to find that shopping for personal property insurance skyrocketed as well. TransUnion reports for the week of March 3, 2021, property insurance shopping grew 24.6% compared with the year prior. In early January, the rate increased 26% compared with the same period in 2020. See the top nine highest-rated home insurance companies, according to U.S. News & World Report The Big “I" Agents Council for Technology (ACT) has opened registration for the ACT Tech Summit to be held Oct. 13-14. This free virtual conference will provide strategic insights from agency, carrier and technology provider experts on digital solutions to industry challenges. New Webinar Series: Website Wording Liabilities from the Big 'I'The Big “I" Professional Liability Risk Management team invites Big “I" members to attend its complimentary new webinar series, Your Website Says WHAT? How Your Agency's Online Presence Puts Your Business at Risk. This series of webinars is focused on the errors & omissions issues created by agency websites and an agency's overall marketing efforts. Register for each session: July 27—The Claims Adjusters' Perspective August 10—The Auditors' Perspective August 24—Wrap-Up
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| The New York Compensation Insurance Rating Board (NYCIRB) has announced that it is discontinuing a special Workers' Compensation classification created during the COVID-19 pandemic. The classification will no longer be valid as of July 25, 2021.
The classification, code 8873 - Telecommuter Reassigned Employees, was introduced in May 2020. The board created it to recognize the reduced exposure of "employees who, during New York’s stay-at-home order related to the COVID-19 pandemic (and future stay-at-home orders), are reassigned to either (a) not perform any work duties (idle), or (b) perform clerical work duties at home." The loss cost assigned to the classification was equ
The revision to the New York Workers' Compensation manual made at the time stated that the classification's use would cease no later than 30 days after the expiration of the state of emergency declared by the governor. That declaration expired in late June. You may want to advise your clients who currently have this classification on their policies that the payroll will be reassigned.
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| By Jim Lombardo, CPCU, AAI, AIM, MBA, AVP of Learning & Development
I’m a big baseball fan. I know there are people who love the game as much I do and many people who think it is too boring. However, as I was watching the Major League All Star game recently, something hit me in the forehead- what a great bunch of new and young stars!! They are energetic, extremely talented and play for the love of the game (well, that and a few million dollars a year)!
Nonetheless, it got me thinking about the insurance industry - we need new young talent - we need people who can take our place. We need people who will bring a new enthusiasm and energy to our agencies, our carriers, our partners and our organizations!
Do you have someone like that in your office already? If so, are you supporting them? Leading them? Helping them grow? (Ask me about Big I NY Leadership Academy - it's coming soon!)
Are you working with your local college to identify that next big star? Whether it be internships, being a guest speaker or participating in career days- we can help! (Ask me about that too!)
Or? How about getting involved with an even younger generation? Have you heard about InVEST? (If not, that’s right, contact me!!)
315-432-4226
We here at Big I NY can answer questions, give you guidance and introduce you to a plethora of products, services and programs to help you grow your agency, support your team and recruit for new employees.
Of course, we also offer All Star education, like:
VU 4 Key Personal & Commercial Lines Exposures Every Agent Must Understand
15inONE CE Program: E&O
VU Why Certificates of Insurance - Just Why?
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| The New York Compensation Insurance Rating Board (NYCIRB) announced yesterday that its filing for a 6.4% decrease in Workers' Compensation insurance loss costs has been approved. The new loss costs apply effective Oct. 1, 2021. Many of your clients may see reductions in their base loss costs.
The NYCIRB files proposed loss costs with the New York State Department of Financial Services for approval every summer. Individual insurers periodically file a numerical factor called a "loss cost multiplier" with DFS. The loss cost multiplied by the loss cost multiplier produces the final rate that an insurer charges an employer for Workers' Comp insurance.
The NYCIRB said that this is the sixth consecutive year that the DFS has approved its recommended loss cost change.
For more information, see:
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| The Big “I" Professional Liability Risk Management team invites Big “I" members to attend the second set of sessions in its complimentary new webinar series, Your Website Says WHAT? How Your Agency's Online Presence Puts Your Business at Risk.
This series of webinars is focused on the errors & omissions issues created by agency websites and an agency's overall marketing efforts. The sessions will help you understand how the words you use can create unrealistic expectations and what you can do to prevent that. During each 30-minute session, you'll learn about this topic from one of multiple angles, including agents, attorneys, claims adjusters, auditors, and the Big “I" association. Register for the next three sessions in the series: On-demand recordings of past sessions are now available: Learn more about agency risk management and review articles, claims data, and more resources at E&O Happens.
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| Q: I just received a call asking for a verification of employment for one of my employees. I thought everything was good based on recent conversations, but now I’m not sure what is going on. Can I ask them if they are job hunting?
A: Legally, yes, you can ask since you learned about the job search through a legitimate source. However, you should not if you learn of it through an unreliable method such as the rumor mill, by searching an employee’s social media page, or by finding the employee’s resume on a job site. The more important question is SHOULD you ask and if so, HOW.
If this is a valuable employee, then you may want to have a conversation explaining that you received the employment verification request and were wondering if they are searching for a new job. If they are, you can ask why and see if you can offer some reason for them to stay. You may not be able to meet their demands, but it could help ease the transition out when they do leave.
If you are not going to be sad to see the employee leave, perhaps you stay quiet and hope they get the job. Their resigning should alleviate your unemployment burden as well as a wrongful termination charge.
I would also think twice about asking certain employees, however. It may be best to not mention it to an employee who is angry or vindictive or who would burn the place down on their way out. Even if they are valuable, you may be making the situation worse for yourself. So instead of confronting them, you may want to bide your time and quietly start looking for their replacement.
Regardless of what action you take, make sure you are not taking adverse employment action against them as this could violate state law and get you in even more trouble.
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| Operating your business in the current COVID world with the relaxing of COVID restrictions across the country requires considering what your future workplace will look like. According to a survey conducted by Forrester Research, while only 10% of companies offered remote work options prior to the pandemic, going forward more than 70% plan to offer fully remote or hybrid work arrangements.
An equally important factor in the structuring of the workplace will be how employees want to work. According to a FlexJobs survey, 96% of employees would like some form of remote work arrangement. The primary reasons for their desire to remain remote are their continued concern about COVID-19 safety as well as their concern with having less flexibility and less work-life balance. Secondary reasons employees want to keep a remote work arrangement are due to the cost savings and their not having to commute. In fact, remaining remote is so important that 27% of surveyed employees are willing to take a pay cut to continue their arrangement and 58% are saying they would look for another job if they cannot continue with some sort of remote work arrangement.
What does this mean? It means that, while you may be uncertain about the need to offer some remote work arrangement, not offering something may result in valuable employees leaving you in a job market which is very employee-friendly. And who are the companies finding candidates to accept their positions? The ones who are offering remote work. While weighing options for your workplace, consider some of these thoughts:
COVID is not gone yet. With a large unvaccinated population and the once-again increasing percentage of COVID cases due to the Delta variant, no one should act like everything is “back to normal.” As long as there is a chance someone can contract COVID-19, employers must take actions to prioritize the health and safety of their employees. This may mean offering reasonable accommodation to those who are at high-risk or who legitimately cannot get the COVID vaccine. If an employee is still staying isolated in fear of contracting COVID, then offering a remote work arrangement may be necessary. But if they are eating in restaurants, going to the movies or sporting events, and traveling on vacation, you have more of an argument to require some in-office work.
Changes to policies and work arrangements can be temporary or become regular practice. As with any policy or practice (except employment-at-will), employers should always reserve the right to modify or rescind an agreed-to arrangement based on company needs. This allows employers to try a new arrangement while not being committed to it if circumstances such as poor performance, lower COVID rates, need for more in-office man power, or financial impacts change in the future. Most employees do not expect a fully-remote schedule but would prefer a hybrid arrangement to always working in-office. By having some days each week that they do not need to commute or face the disruptions in the office, employees can balance their face-to-face needs while having time at home to concentrate on their productivity.
If you cannot have a fully-remote workforce, look into hybrid options. This could be having employees stagger their workweek with certain days in the office with the rest at home. Most companies have certain positions that cannot work remotely but that does not mean you should not try to offer a partially-remote option for those positions that can.
Avoid falling into the “presenteeism” trap of valuing the work of employees in the office more than the work of those who are remote. Instead, create realistic performance expectations for every employee regardless of where they work and hold each employee accountable. Someone being in the office does not mean they are working harder or more effectively than someone who is remote. You can learn more about presenteeism in our video found here.
Focus on availability for remote employees as you would attendance for in-office employees. Require remote employees to be available during certain days and times so they can be reached by clients and co-workers. But also allow some freedom when possible as long as their work is being done. If they are not available and/or are not producing, talk to them about their failure to meet expectations and then offer options such as increasing their in-office time or reassessing how their tasks are done.
Create effective communication methods for all employees. Employees should be connected with their managers and co-workers so create requirements for scheduled and impromptu communication using phone and video calls, not just email. Most remote employees do not need to talk to their manager more than a couple of times a week but, since each employee is incentivized differently, you may need to create different plans to interact with each one.
Establish policies to define expectations and requirements. Your policies should cover the issue, use, and return of company computers and laptops, the protection of company and client information, network security, expense reimbursement, time-tracking for non-exempt employees, and ergonomic work areas to reduce Workers’ Comp claims.
If you are hesitant, consider asking those who move to remote work to offer a concession. Employees who value remote work may be willing to take a reduction in pay, benefits, or perks. While not effective in a fully remote workplace, it may help balance morale in a company where some employees must work in the office.
Set different in-office policies for vaccinated and unvaccinated employees. Follow the guidelines of the CDC, OSHA, and most states by allowing vaccinated employees to forego masks and social distancing while still requiring it of the unvaccinated. Require employees to prove they are vaccinated or else require them to follow the policies for the unvaccinated. Please note: This is not requiring anyone to get vaccinated or submit proof of vaccination but rather offering a mask-less option for those who can prove they are vaccinated.
Everyone had to be flexible when everything shut down. The best approach going forward is to remain flexible since COVID-19 is still impacting employees in various ways, some of which are unexpected and cannot be planned for. Understand if a family need arises which requires more working from home as that accommodation is probably better than having to find a new employee.
If you have any questions as you structure or restructure your workplace, reach out to us at Affinity HR Group. Visit our website to learn more about our services or connect with us at contact@AffinityHRGroup.com or 877-660-6400.
By Paige McAllister, SPHR, SHRM-SCP, Vice President for Compliance – Affinity HR Group, Inc.
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| Liberty Mutual Holding Co. agreed to buy State Auto Financial Corp. for about $2.29 billion in cash, adding roughly 3,400 independent agencies in 33 U.S. states. Liberty Mutual is owned by its policyholders and is one of the more acquisitive insurers with that structure. Small markets pose a unique challenge for agencies looking to grow. You have more options than just the “born and bred" hometown producer, including newbies, out-of-industry converts and returning home stories. Learn some strategies that may help. As businesses and individuals begin to come out on the other side of the COVID-19 pandemic, it's a good time for insurance agents to consider starting their own premium finance company - especially those that do a lot of business with certain industries. When the full scope of the pandemic's impact was felt, most people assumed a massive slowdown of the economy would mean fewer construction and renovation start-ups, leading to lower prices for lumber amid lessening demand. It didn't quite work out that way. The nation's largest property/casualty insurance organization is defending ransom payment reimbursements by insurers in a new set of principles stressing that the insurance industry wants to partner with government and business to improve cybersecurity. There is inescapable liability exposure to unit owners, individually and collectively, as members of the homeowner's association. There may have been complaints to the association of suspicious movement or cracking within the structure. Those complaints may have been ignored or studies may have been commissioned. The results of those studies concluded in reports that may exist (and they will be found) addressing dangerous conditions and urging corrective action that should have been acted upon.
A hacker forum is auctioning off the information of 700 million LinkedIn users. The stolen dataset was posted on the RaidForums hacker site on June 22. Cybersecurity website PrivacySharks analyzed the dataset and reported in a blog post that it contains information such as users' full names, gender, email addresses, phone numbers, and industry information. If your agency is on Linkedin, be sure to update your password. Learn the most important factors that insurers consider when determining a “good" application for cyber insurance. As it turns out, these factors also form the building blocks for ensuring your own agency's resilience to today's cyber threats. The worldwide commercial insurance market is anticipated to see a compound annual growth rate of 8.5% by 2028, reaching a value of more than $1.22 trillion, according to Valuates Reports. The market was valued at $692 billion in 2020. Don't miss learning about the future of technology in business, the role of agency data to direct decisions, how to combat cybercrime, and more at Agency Nation's Elevate Trilogy Part Two: Data. understand the focus on data and technology, the big role it is playing today, and how it will unfold in the future. This event is FREE to all Big "I" agency members. The Agents Council for Technology (ACT) and supporting ACT member, SimplePin, are teaming up for a three-part webinar series designed to help your members give clients the best possible customer experience (CX). On July 13 at 1 p.m. ET, Part One will delve into the discover and evaluate stages. This first session will deliver insights and action steps that members can apply to ensure their agency's digital presence is found and favorably viewed by potential customers.
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| By Sue Keegan, AIC, MBA, Learning & Development Manager
3 Things
Join us for a webinar on July 13th to learn the most up-to-date cyber security information presented by Walter Contreras of Motiva Networks. Free for members!
Mark your calendar - It's Part 2 of the GearUp! Webinar on the NY HERO Act. Tune in at 10 a.m. on Wednesday, July 14th, to hear Tim Dodge discuss compliance with the prevention plan requirement now that businesses have a deadline. Register here.
2 Ideas
Celebrate World Emoji Day on Saturday, July 17th. Check out https://emojipedia.org/ where you can find all the emoji updates across all platforms and operating systems. My favorites: 😍 😆 🤷♀️ 🤦♀️ 😂
1 Question
What songs would be played on a loop in hell? I will limit my selection to 3. In no particular order, Africa by Toto, Celebration by Kool and the Gang and Sussudio by Phil Collins. Let me know your song list via email or post in our Community. |
| A guest post by Walter Contreras of Motiva
The biggest global ransomware attack yet continued to bite Monday as details emerged on how the Russia-linked gang responsible breached the company whose software was the conduit. In essence, the criminals used a tool that helps protect against malware to spread it widely. An affiliate of the notorious REvil gang, infected thousands of victims in at least 17 countries on Friday, largely through firms that remotely manage IT infrastructure for multiple customers, cybersecurity researchers said. REvil was demanding ransoms of up to $5 million. But late Sunday it offered in a posting on its dark web site a universal decryptor software key that would unscramble all affected machines in exchange for $70 million in cryptocurrency. It wasn’t clear who they expected might pay that amount. Victims of the Kaseya hackA broad array of businesses and public agencies were affected, including in financial services, travel and leisure and the public sector — though few large companies, the cybersecurity firm Sophos reported. Ransomware criminals infiltrate networks and sow malware that cripples them by scrambling all their data. Victims get a decoder key when they pay up. Kaseya explained that ‘fewer than 60’ of its customers were impacted. But many of those customers are managed service providers managing the IT infrastructure for other businesses. Those 60 impacted customers translated to ‘about 800 to 1,500’ downstream businesses compromised, according to Kaseya. What is the Biden Administration doing?Biden suggested Saturday the U.S. would respond if it were determined that the Kremlin is at all involved. On Sunday, Deputy National Security Advisor Anne Neuberger issued a statement saying President Joe Biden had “directed the full resources of the government to investigate this incident” and urged all who believed they were compromised to alert the FBI. On Wednesday, Biden called top security officials into the situation room to discuss the recent cyberattacks. He says the damage done in the Kaseya breach is minimal, but he has a wide range of options if he decides to take action against hacking groups. What is Kaseya doing?Kaseya is working with law enforcement and government cybersecurity agencies in the US, including the FBI, and the Cybersecurity and Infrastructure Security Agency. While SaaS services were expected to be brought back online, one by one starting with the EU, UK and APAC data centres on July 5, an update from Kaseya on July 7 (US time) said an ‘issue’ was discovered during the VSA SaaS deployment, blocking the release. Be carefulKaseya recently sent an email saying “Spammers are using the news about the Kaseya Incident to send out fake email notifications that appear to be Kaseya updates. These are phishing emails that may contain malicious links and/or attachments. Do not click on any links or download any attachments claiming to be a Kaseya advisory. Moving forward, all new Kaseya email updates will not contain any links or attachments.” So what can you do? This Kaseya hack shows the importance of a defense in depth approach, given cyber security attacks can happen in a variety of ways. Having a step-by-step plan will help you take control of the situation if the worst were to happen and will help reduce the impact on your business. “Hope” is not a strategy! Make Sure You Are Brilliantly Prepared For A Cyber-Attack By Requesting A FREE Cyber Security Risk Assessment Today!
If you want to know more about Cybersecurity or if your business is in risk of a DATA BREACH visit: Cybersecurity Audit for BIG I Members | Motiva
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