Insurance jargon can be confusing and result in many buyers purchasing coverage that might not truly reflect what they are intending to insure. Today we are going to discuss the differences between and "Occurrence" and "Claims Made" policy.
Occurrence: Most general liability insurance polices are written on an "occurrence" basis. This means an insurance policy needs to be effective on the date an incident occurred in order for coverage to be in effect. This means a claim can be paid even if a policy has expired, as long as the incident occurred while the insurance policy is in force. Depending on the jurisdiction and policy, various subjectivity and statutory conditions may apply.
Claims Made: Claims made policies provide coverage from the date the claim is made against the insured and usually provide an extended reporting period beyond the expiration date of the policy. Most common in professional liability policies, claims made policies require retroactive dates in order to cover events that occurred in previous years.
Both types of policies should be able to provide the coverage need if they are structured properly. It Is important to as your insurance broker how Occurrence vs Claims Made insurance applies to you.
What do you think?
Let's face it - disasters and accidents such as theft, fire, internal flooding and even natural disasters happen a lot nowadays. Global warming is on the rise, but also the population numbers. Anything can happen and people are constantly reminded of the risks they face on a daily basis through different media outlets. Fortunately, insurance plans and policies were designed to help us exit from the stress and headaches found in risk.
But how does the average consumer perceive insurance and what it has to offer?
Whether it's car insurance, life insurance, health insurance or business insurance, there is no doubt insurance plans are designed to offer the utmost protection. They promote benefits which help almost every type of situation, from a personal injury claim to a natural disaster. The car, house, business and our life in general are all things that need to be protected, yet safe-guarding is what every person wants to do but can't necessarily afford.
Not only are insurance policies expensive but one should be extremely careful when selecting an insurance policy. There are a lot of aspects, solutions and variables covered in each - which definitely demands attention regardless of the type of insurance or any other factor. These factors are what gives insurance a negative reputation in the marketplace.
So, why insurance?
The answer is simple. While there are things that cannot be replaced such as the loss of a loved one or an invaluable heirloom , most of our valuables such as our investments and material belongings can be replaced. Whether it's the house, car or business - insurance is the solution that brings people back on two feet and helps them start over again. A sound insurance plan definitely offers a better future for a consumer, as well as an extra layer of comfort in case something goes bad
Using an Insurance Broker
A good insurance broker will not only help a consumer find the right policy but will act as a risk manager for their entire portfolio. Trustworthy advice and service at purchase and in the event of a claim should be essential consideration in the selection of an insurance broker. Your insurance broker should be considered one of your key advisors, along with your accountant, lawyer and banker.
What do you think? We would like to hear how your insurance experience can be improved.
"If your security program is focused first and foremost on compliance you're doing it wrong" - Amit Yoran
The landscape of cyber security is forever changing and organizations will need to step up their game if they are going to effectively evade intruders. Enhancement technology fosters the ability for team members to think freely and approach situations differently than those who are restricted to strict protocols. So what should businesses look forward to?
1. Authentication Services: Personalized authentication of individual employees to allow easier and more secure access to a companies information. Authentication devices can replace passwords and limit the threats encountered when a laptop or notebook full of passwords is stolen.
2. Better Storage: Using a desktop harddrive or software program can leave your customers data vulnerable and open to attacks. Encrypted cloud solutions will eventually give businesses the ability to store their information without the worry of intruders accessing usable data.
3. Talent: The good thing about the lack of InfoSec talent is new generations are being brought up in a interconnected and digital world. Thinking tech is becoming a standard for successful businesses in a globalized economy. Entry level youth have access to the resources and knowledge that can make them more effective than a 20+ year veteran.
What do you think?
Let's face it - long gone are the days when the Internet was safe for all of us. In a fast-paced digital world in which thousands of transactions, information streams and other data are sent as we speak, it is evident that safety is a concern.
Speaking of which, many companies and individuals are losing big amounts of revenue due to breaches of information and hacks. With the 'digital crime' on the rise, everyone online should consider an effective cyber strategy to prevent big losses of data or failures from happening.
Cyber Crime - "The RCMP interprets cybercrime to be any crime where cyber - the Internet and information technologies, such as computers, tablets, personal digital assistants or mobile devices - has a substantial role in the commission of a criminal offence. Under this broad lens, the RCMP breaks cybercrime into two categories:
technology-as-target - criminal offences targeting computers and other information technologies, such as those involving the unauthorized use of computers or mischief in relation to data, and
technology-as-instrument - criminal offences where the Internet and information technologies are instrumental in the commission of a crime, such as those involving fraud, identity theft, intellectual property infringements, money laundering, drug trafficking, human trafficking, organized crime or terrorist activities, child sexual exploitation or cyber bullying" - RCMP
So, What Is Cyber Strategy?
In a nutshell, a great cyber strategy should not just help a business recover from financial losses (Insurance), it should help a business assess their risks to take a proactive stance on cyber crime.
It is a strategy that helps companies and individuals avoid financial losses from cyber events and more importantly, allows a good risk manager to assess in-house cyber practices. In other words, cyber strategy is a good way to ensure a business is protecting against internet crime.
Your online presence may be a bridge to others in your network. Without a proper cyber strategy, you become the main target for hackers which may result in a loss.
A Solution In The Cyber World
Cyber insurance on the other hand helps individuals and businesses recover from Internet based risks and crime. Whether they involve hacking attacks and threats or risks to the information technology infrastructure, cyber insurance can cover the losses relating to the damage or loss of information.
There are many different cyber insurance policies, generally each of them should include assistance and management of the cyber infrastructure, which is critical, especially when it comes to damage of reputation or regulatory enforcement. Therefore, cyber insurance is a vital aspect for any business. This is why many ordinary insurance companies have been offering cyber insurance along with other packages.
We can all agree that online business is very popular nowadays - one that works 24 hours a day, 7 days per week and one that lets your brand connect with the world. As much as it is popular, the digital world is also fragile. All in all, cyber insurance is important and advisable to every business. In a digital world full of viruses, attacks and hacks, every business owner needs to reinforce the safest strategy and prevent any of those threats from happening.
Contact us for your custom cyber liability toolkit.
A colleague commented recently on an interesting article by Andrew Steen titled "What are Commercial Insurance Clients Buying - a Policy or a Response?". As a commercial insurance broker we deal with this situation every day which is why we understand there is such a disconnection between product offerings and purchasing habits. Truthfully positive claim responses are an expected outcome of an insurance transaction for most consumers, therefore it is usually only those who have been impacted negative by a claims situation who really appreciate an insurers capabilities to respond in the event of a claim.
Insurance is a competitive market in which a commodity exchanged is not fully known to one of the parties. A great paper by authors Michael Rothschild and Joseph Stinglitz (Equilibrium in Competitive Insurance Markets: An Essay on the Economics of Imperfect Information) helps explain this issue, which can justify the purchasing habits of consumers. The article suggests in theory we can determine the purchasing habits for insurance by calculating the utility demand.
Utility Theorem: Determining the demand for insurance
V(p,W1, W2) = (1-P) U (W1) = pU(w2)
What most buyers don't consider are the intricacies of an insurance policy. Since there are so many terms and conditions to an insurance transaction, buyers often rely on imperfect information to make purchasing decisions on their insurance.
"Terms and conditions is to commercial insurance what campaign promises is to leadership races; in either case, the right questions before the deal is done may prevent a lot of grief after the commitment"
Working with an insurance broker is definitely the best alternative when it comes to an insurance transaction. Brokers are trained to understand several insurance policies and make recommendations based on multiple factors important to the consumer.
 Equilibrium in Competitive Insurance Markets: An Essay on the Economics of Imperfect Information
What do you think?
The Base Team
Insurance made easy. How we can make insurance better for you?