January 2013

Many companies protect their vehicle fleet or pricey mobile equipment by using such traditional theft prevention techniques as removing fuses, hiding fuel shut-off switches, disengaging or removing components, or providing locking devices. Unfortunately, these precautions probably won’t stop professional thieves or those equipped with a mobile crane and a flatbed truck.

Vehicle tracking technology can help. Some systems use GPS satellite technology that provides 24/7 online customer monitoring with full-color maps. Others employ cellular phone technology. A few firms combine GPS and cellular systems, which combine the best features of each and provide backup. Tracking systems offer automatic notification if a unit is moved without authorization. Stolen vehicles are frequently recovered within one to two hours, significantly reducing the likelihood of damage to them.

Two reputable companies that offer vehicle-tracking systems are LoJack (Westwood, MA) and the Clifford Alarms unit of Directed Electronics Inc. (Vista, CA).

More and more businesses with substantial equipment values or sizable vehicle fleets are installing these devices. Some insurance companies require them. Reducing loss frequency and severity of business vehicles and contractors’ equipment will help both owners and insurers – a classic win-win scenario. For more information on using these systems, please get in touch with our agency’s risk management professionals.

Tens of thousands of laptop computers were stolen in airports alone last year. These portable, high return, easy-to-sell computers remain a prime target for thieves, who also stake out hotels and car rental depots for distracted travelers. Other mobile electronic devices (notebooks, tablets, and smartphones) are just as vulnerable.

If one of your employees falls victim to theft of a mobile device, the injury to your company could be severe: the cost of replacing the device and software, plus the exposure of confidential data, customer files, and trade secrets. To help avoid this danger, follow these basic guidelines from www.corporatetravelsafety.com:

1. List the serial numbers and software of all mobile devices, plus the employees assigned to use them. Fewer than 10% of stolen devices can be recovered by serial number because most people don’t record it.
2. Train employees, to always keep their device in sight and in front of them when traveling – never at their side or in a luggage cart.
3. If employees don’t need to use the laptop, provide them with a removable hard drive that can be packed separately.
4. Have them carry laptops in a nondescript bag that doesn’t look like a computer case.
5. Provide employees with a laptop lock, which they can use in hotels where there’s no safe.

If these precautions fail, our agency’s service team stands ready to insure the portable electronic devices that employees use for business purposes and your company’s liability for the confidential data these gadgets store. Feel free to give us a call.

Probably less than you think.

Three in four U.S. companies don’t have Cyber Risk or Network Security insurance, according to a study by Towers Watson & Co. What’s more, many small and midsized businesses that do carry these policies have left themselves vulnerable to costly losses by failing to develop proactive data security and crisis response plans.

A data security plan begins with the human element. Training employees – particularly those who regularly deal with proprietary information in-house or stored on portable electronic devices – offers a cost-effective approach. A study by NetDiligence found that more than one in four liability data breach claims were due to lost equipment and other staff errors.

To help keep confidential information safe, managers should:

1. Identify those employees who could create the largest exposures for the company in case of lost or misplaced data and make sure that they’re diligent in protecting this data.
2. Make compliance with data security procedures a part of worker performance review.

If you should suffer a data security breach, you’ll need a crisis response plan, with responsibilities assigned ahead of time. The risk management and legal departments will deal with coverage-related issues such as cross-policy response and claims processing, while IT managers and auditors investigate the source and extent of the breach. Planning should also include guidelines for contacting law enforcement, and forensic investigators, as well as communicating with providers and business partners to address continuity issues.

The plan should designate personnel to handle media inquiries and public statements, interact with providers, and notify affected customers, using dedicated and updated contact lists.

We can help you create comprehensive, cost-effective protection for your confidential information by combining insurance coverage with risk management techniques.

A comprehensive disaster plan plays an essential role in risk management – and the planning process should include a thorough review of your company’s insurance program.

This analysis should answer these ten basic questions:

1. Are policy coverage limits and deductibles appropriate?
2. What types of disasters (perils) are covered and what perils are specifically excluded?
3. Will insurance cover losses due to interruption of power or other critical services, major suppliers or buyers, disruption of transportation services, or a government prohibition of employees or customers entering the premises due to property damage caused by an insured peril?
4. Does coverage factor in inflation, improvements, and building code changes?
5. Is coverage written for “replacement cost” or “actual value” (cost less depreciation)?
6. Does Business Interruption insurance cover loss of income, payroll expenses, and the cost of temporary relocation?
7. Will implementing a comprehensive and effective Business Continuation Plan lead to reduced premiums?
8. Will insurance protect management against litigation alleging poor continuity planning?
9. Is policy documentation (serial numbers, dates of purchase, costs, receipts, photographs, etc.) detailed and up to date?
10. Are the original of all insurance policies kept in a fireproof cabinet or a secure off-premises location with copies readily available?

Our agency’s risk management specialists would be happy to help you take this quiz – and work with you on crafting an effective insurance program that will help your business stay in business after disaster strikes. Just give us a call.