Gillian Hadfield Gillian Hadfield

The Shocking Reach of a Data Breach

It’s hardly a secret that data breaches occur and carry significant costs to correct. But just how often they happen, and the true financial damages they inflict, can still be stunning.

According to statistics collected by security.com, here is just a sampling of data breach fallout ramifications, compiled for 2020, the most recent year for which statistics are available:

  • On average, data breaches globally cost companies $3.86 million each.

  • The U.S. represents the most expensive nation for data breaches, with the average cost of each instance totaling $8.64 million.

  • Breaches also decrease productivity and disrupt workflow, with companies requiring 280 days—more than nine months—on average to identify and resolve data breaches.

  • In 2020, a total of nearly 4,000 data breaches were publicly reported, which, at first glance, appears to be a 40% improvement from the prior year. However, delays in reporting and declining media coverage mean that fewer breaches were actually reported. The true total of breaches, therefore, remains unknown and could be as high or higher than the year before.

  • Data breaches in 2020 reached an all-time high number of exposed records of more than 37 billion.

  • Fully 72% of data breaches affected large companies, with the remaining 28% impacting small businesses, proving that no one is completely safe from this phenomenon.

The professionals at The Reschini Group can help create an approach to cybersecurity coverage and data breach prevention that makes sense for your specific business or enterprise. Contact them to learn more.

Copyright 2024 The Reschini Group

The Reschini Group provides these updates for information only and does not provide legal advice. To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.

Contact us to learn more.

https://www.reschini.com/contact-us

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Gillian Hadfield Gillian Hadfield

Honoring Our Legacy of Women in Leadership

At The Reschini Group, celebrating Women’s History Month can only begin in one way – by celebrating Rose Reschini, our founder and the inspiration of the legacy she established.  

In 1938, this confident and daring twenty-eight-year-old trailblazer overcame many obstacles and naysayers to become one of the first women to start an insurance agency in Pennsylvania.  Her tireless work ethic, constantly expanding knowledge, commitment to community causes, and undeniable sense of assurance and pride in her company, created the foundation for what has become a powerhouse insurance broker, The Reschini Group.

Our talented team continues to exemplify and honor Rose’s approach to complete customer service and the highest standards of professional excellence.  In our work with businesses large and small, school districts, not-for-profits, and many others, we draw inspiration and confidence from the indomitable spirit and steadfast practice of our founder, Rose Reschini.

As we celebrate Women’s History Month, International Women’s Day on March 8 and Founder’s Day, Rose’s Birthday, on March 11, we are wise to remember everything it took for her to begin this endeavor.  But, as importantly, we pledge to emulate Rose, applying our utmost efforts to continue the growth of this enterprise, whose success she knew so clearly resided in serving customers the best way possible.

Copyright 2024 The Reschini Group

The Reschini Group provides these updates for information only, and does not provide legal advice.  To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.


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Gillian Hadfield Gillian Hadfield

Putting Responsibility for Risk Where It Makes the Most Sense

It only makes sense that the people closest to any given situation have the best ability to control it, protect it, or maintain it.  By that same logic, those same frontline people have the most riding on the ongoing safety of any variables impacting that situation.

Managing risk effectively, in other words, stands the best chance when those closest to the potential for risk take responsibility for it.  In the business world, this concept goes by the term contractual risk transfer.

This represents a legally binding way to transfer risk to the party that may be in the best position to control the risks related to the service to be provided.  It involves the use of contractual obligations, such as indemnity and exculpatory agreements, waivers of recovery rights, and “hold harmless” insurance requirements that pass along to others what would otherwise be one’s own risks of loss.

Most often, it means transferring the risk of injury or property damage caused by a company you hired – a subcontractor, vendor, or supplier, for instance – through a contract or insurance policy.  Say, for example, a commercial property tenant assumes the risk for keeping sidewalks clear, or an apartment complex transfers the risk of theft to a security company, or a subcontractor assumes the risk for work performed for a contractor on a property.

Contractual risk transfer actually benefits all parties involved.  The primary party can take comfort that the secondary party – the subcontractor or vendor – will carry out its responsibilities, since it has accepted responsibility for the risk.  Entering into these risk transfer agreements can also lower the cost of insurance for the primary party.

At the same time, the secondary party can benefit from agreeing to contractual risk transfers because it opens the door to increased business relationships and revenues – while also helping to ensure that its employees are well trained, diligent, and responsible.

The professionals at The Reschini Group can help you determine the viability, advantages, and details of entering into contractual risk transfer agreements, to put the responsibility of risk where it makes the most sense.  Contact them to learn more.

Copyright 2024 The Reschini Group

The Reschini Group provides these updates for information only, and does not provide legal advice.  To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.

Contact us to learn more.

https://www.reschini.com/contact-us



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Gillian Hadfield Gillian Hadfield

Cybercrime by the Numbers

As more business owners realize the importance of, and are securing, cybersecurity insurance for their enterprises, the rate of cybercrime continues to expand and explode. Here are some statistics from the FBI marking the increase in instances of cybercrime from 2019 to 2020, as the COVID-19 pandemic raged. Because more businesses were driven by necessity to operate on a greater digital platform, it created a much wider canvas for cybercriminals to exploit, as seen here:

  • Social attacks (phishing) – Up 197.6%

  • Credit card fraud – Up 22.5%

  • Investment scams – Up 119.8%

  • Identity theft – Up 169.9%

  • Denial of service – Up 49.2%

Additional noteworthy statistics about cybercrime include:

  • Ransomware is common (and often lucrative). In 2020, 1 in 6 businesses that fell victim to cyberattacks faced ransomware, and about half paid the ransom.

  • Cybercrime reports nearly doubled. The FBI’s Internet Crime Complaint Center (IC3) saw a 69 percent increase in the number of cybercrime reports in 2020 versus 2019. On average, the FBI received 2,000 cybercrime reports per day in 2020.

  • Data breaches affect personal data. In 2020 alone, data breaches exposed over 37 billion personal records, 82 percent of which came from only five breaches. Data breaches affect not only companies and organizations but also individuals.

  • Identity fraud causes serious losses. Identity fraud losses in 2020 cost its 49 million victims $56 billion in total. That breaks down to $1,100 per victim.

  • Cyber attacks are the most common: For those familiar with cyber insurance, 70 percent have experienced a cyber attack, followed by identity theft at 69 percent, cyberbullying at 64 percent, and cyber extortion at 69 percent.

Cybercrime shows no indication of slowing down or becoming less dangerous. Having the proper protection is more than prudent – it has become a necessity. Contact the professionals at The Reschini Group to learn more about assessing your exposure to cybercrime, and assembling the right insurance coverage to minimize your risk.

https://www.security.org/insurance/cyber/statistics/

Copyright 2024 The Reschini Group The Reschini Group provides these updates for information only and does not provide legal advice. To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.

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Gillian Hadfield Gillian Hadfield

Understanding Changes to ACA for 2024

The Affordable Care Act (ACA) made a number of reforms to group health plan coverage when it was enacted in 2010. Since then, changes have been made to various ACA requirements, such as annual cost-of-living increases to certain ACA dollar limits, extensions to ACA reporting deadlines, and updates to preventive care coverage guidelines. 

Changes to some ACA requirements will take effect in 2024 for employers sponsoring group health plans.  Most notably among these is the affordability percentage under the ACA’s employer mandate rules for applicable large employers (ALEs),which will be at its lowest point, requiring many ALEs to lower their employee contribution rates. 

The following plan design requirements have changed for 2024:

  • Limits on cost sharing for essential health benefits.

  • Coverage affordability percentage under the employer mandate rules.

  • Dollar amounts for calculating penalties under the employer mandate rules.

Additional considerations when planning for other major plan design changes include:

  • Confirm that your plan’s out-of-pocket limit for essential health benefits (EHB) does not exceed the ACA’s limit for the plan year beginning in 2024.

  • If you have a health FSA, confirm that its dollar limit on employees’ salary reduction contributions will not exceed the adjusted limit for the plan year beginning in 2024. 

  • If you have a health FSA that allows carryovers of unused amounts, confirm that the maximum unused amount from a plan year starting in 2024 (that is allowed to be carried over to the immediately following plan year beginning in 2025) does not exceed the adjusted limit. 

  • Confirm that your health plan covers the latest recommended preventive care services without imposing any cost sharing. 

  • If you offer an excepted benefit HRA, confirm that its maximum benefit amount for the plan year beginning in 2024 does not exceed $2,100.

  • If you have a grandfathered plan, determine whether it will maintain its grandfathered status for the 2024 plan year. 

  • Will you be an ALE for 2024? 

Employers should review these ACA requirements and develop a compliance strategy, ensuring that their health plan documents, including the summary of benefits and coverage (SBC), are updated to reflect any new plan limits, and that up-to-date information is communicated to employees at open enrollment time.  

Of course, the law is much more complex than can be provided in an overview like this.  Contact the Benefits professionals at The Reschini Group for a more complete explanation and to get informed guidance on how your organization needs to prepare for changes to the ACA in 2024.


Copyright 2023 The Reschini Group

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Gillian Hadfield Gillian Hadfield

Understanding the Mind of a Cyber Attacker

Cybersecurity breaches continue, even as systems and techniques to prevent or combat them have steadily improved.  It becomes more important to understand and anticipate the mind of the cyber attacker, to keep the damage such a person can cause to a minimum.  According to industry experts*, here are three core motivations of the cyber attacker:

Diligence: "Curiosity might have killed the cat, but the car has nine lives." 

Curiosity drives hackers to explore and understand systems, networks, and software in order to identify vulnerabilities. Not only are they constantly seeking new knowledge and skills to improve their abilities and stay ahead of security measures, they're constantly applying newly learned approaches, tricks, and techniques in different systems.

An Adversarial Attitude: "Move fast and break things"

This mindset is always looking for ways to defeat security measures, challenge the status quo, and push the boundaries of what is possible.  Hackers are often driven by a desire to prove their own abilities and to test the limits of systems and networks. Hackers constantly ask themselves: "How can I break this?", "How can I exploit this?", or "How can I bend this to my will and cause maximum damage?" 

Persistence: "Of course I struggle, I just don't quit"

Hackers may encounter roadblocks and failures, but they don't give up easily. They will continue to work until they have achieved their goal.  Hackers remind themselves that cybersecurity teams need to identify and remediate all vulnerabilities while a hacker needs to find only one. The ​​relentless pursuit of vulnerabilities is at their core.


So, how can organizations properly protect themselves against such plotters?  By applying these same thought processes to their cybersecurity strategies.  For example, employing an adversarial mindset can serve as an essential critical thinking tool to drastically improve an organization's cyber posture by preemptively detecting and remediating vulnerabilities.

Making sure you have the right cybersecurity insurance coverage plays a vital role in this process, as well.  Consult with the professionals at The Reschini Group to learn more.

https://thehackernews.com/2023/02/how-to-think-like-hacker-and-stay-ahead.html

Copyright 2023 The Reschini Group

The Reschini Group provides these updates for information only, and does not provide legal advice.  To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.

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In the Press Gillian Hadfield In the Press Gillian Hadfield

The Reschini Group Adds Todd D. Brice as Vice President

Joe Reschini, President

The Reschini Group

(724) 463-5973

The Reschini Group Adds Todd D. Brice as Vice President

The Reschini Group will welcome Todd D. Brice as Vice President, Business Development, on December

1, 2023.

Brice, who was most recently President & CEO of Indiana-based S&T Bank, has extensive experience in

many facets of the financial services industry.

Brice has remained an active member of the community and is currently a board member for the Indiana

County Development Corporation, Seton Hill University and Pennsylvania Mountain Care Network.

“Everyone at Reschini is thrilled that Todd will be joining our team. Todd’s reputation, network, and

commitment to the community are unmatched,” said Joe Reschini, President of The Reschini Group.

Brice shares the sentiment. “I am very excited to join the Reschini Group and look forward to working

with their team,” he said.

Brice earned a Bachelor of Arts degree in Business Administration from Grove City College in Grove City,

PA and completed a three-year program through the Graduate School of Banking at the University of

Wisconsin in Madison, WI. He previously served on the boards of the Pittsburgh branch of the Federal

Reserve Bank of Cleveland, Indiana County YMCA, and Indiana Regional Medical Center. Brice is also a

member of the Pittsburgh Gold Chapter of the Young President’s Organization and a former member of

the Greater Pittsburgh Chamber of Commerce.

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Gillian Hadfield Gillian Hadfield

Holiday Electrical Safety Tips


The U.S. experiences more than 25,000 home electrical fires each year, most of which could have been easily prevented if the right safety precautions had been taken.  With the holiday season now in full swing, the proper use of electrical devices like decorations, tree lights, and other objects not typically used during the rest of the year takes on even greater importance.  Here are some tips to keep your home, family, and guests safe during the holidays:

1. Don’t Overload Outlets

Extension cords should not be a permanent solution to any situation in your home. Each outlet's circuit is designed to handle a specific amount of electricity, and overloading them with extension cords and too many power strips can cause dangerous overloads.. This is one of the most common reasons for electrical fires, and it’s entirely preventable. Make sure your surge protectors have an internal circuit breaker that will cut power if it senses problems. If your family simply has too many gadgets that need plugging in at once, it’s probably time to install new outlets and wiring.

2. Test Stored Decorations, Displays, and Lights Before Using

It can be easy to assume that all holiday supplies remain in proper working order year after year, but that can be a dangerous assumption. Carefully test all decorations, displays, and lights that require electricity before you place them into use. If you have any questions or concerns about the functionality and safety of any piece, ensure it is replaced.

3. Keep Flammable Objects Away from Electrical Outlets and Cords

Avoid placing trees, furniture, curtains, decorations, boxes or any other flammable item in front of (or too close to) an outlet. Most outlets generate an unnoticeable amount of heat, but if they’re overloaded or faulty in some other way, they could generate a lot more heat, cause sparks and then start a fire on whatever is closest to them. Regularly check your outlets by feeling them; they should not be noticeably warm.

4. Unplug Decorations When Not in Use

It remains a smart habit to unplug things like the toaster and other small kitchen appliances before you leave the house.  Never leave a space heater or electric blanket plugged in when you’re not there.  The same goes for holiday decorations that require electricity.  Better safe than sorry.

5. Retire Older Decorations

Even though some older holiday decorations carry sentimental value, they could still become hazardous electrical-fire starters.  If any of these items shows the following signs of wear, dispose of them safely and get a newer, safer model: frayed electrical cords; lights flicker when turning on or off; sparks when turning on; or excessive heat coming from the item.

 

The holidays are a time for family, friends, and celebration.  Electrical safety is simple and essential, to permit every gathering the assurance and comfort of knowing all is well.  Consult with the professionals at The Reschini Group for more information on this subject.




Copyright 2023 The Reschini Group


The Reschini Group provides these updates for information only, and does not provide legal advice.  To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.


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Gillian Hadfield Gillian Hadfield

Taking the Wheel: Self-Driving Cars and Insurance Coverage

With every new model year, cars sport more automated features and crash avoidance technology, like blind-spot monitoring, rear traffic sensors, and forward-collision and lane-departure warnings. Each of these will, of course, be built into the fully self-driving vehicles sure to come in the next few years.

As such crash avoidance technology gradually becomes standard equipment, insurers will be able to better determine how well these components reduce the frequency and cost of accidents.  For accidents that do still occur, these tech components also can help confirm whether a higher percentage of product liability claims result, as claimants blame the manufacturer or suppliers for what went wrong rather than their own behavior. Liability laws might evolve to ensure that autonomous vehicle technology advances are not brought to a halt, due to the potential financial risk.

While experts differ as to how quickly the evolution to autonomous vehicles will take, most drivers can expect the steady progression from a minimally or semi-automated car to the next level to continue year after year.  According to the Insurance Institute for Highway Safety, it is anticipated that there will be 3.5 million self-driving vehicles on U.S. roads by 2025, and 4.5 million by 2030. However, the institute cautioned that these vehicles would not be fully autonomous, but would operate autonomously under certain conditions.

An industry survey of more than 200 experts in the field of autonomous vehicles found three primary obstacles ahead: legal liability, elected and regulatory policymakers, and consumer acceptance.  An Insurance Information Institute Pulse survey reported that 55 percent of consumers would not ride in a fully autonomous vehicle.  Some do not want control to be taken from them and would resist the move to complete automation, even stating they avoid using the cruise control feature for that very reason.

Some aspects of insurance will be impacted as autonomous cars become the norm. There will still be a need for liability coverage, but over time the coverage could change, as manufacturers and suppliers and possibly even municipalities are called upon to take responsibility for what went wrong.

One thing remains certain, however.  Technology promises to continue on its march forward, and self-driving cars – or, at least, more features that enhance safety – are sure to become a more prevalent feature of the automotive landscape.  To keep up with these changes, and the impact it could have on your auto insurance coverage, contact the professionals at The Reschini Group.


Source: https://www.iii.org/article/background-on-self-driving-cars-and-insurance

Copyright 2023 The Reschini Group

The Reschini Group provides these updates for information only, and does not provide legal advice.  To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.





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Gillian Hadfield Gillian Hadfield

Road Tech at Work: Telematics Benefit Drivers, Employers, and Insurers

For decades, auto insurance rates have been based on estimates and histories. Teen drivers, considered the riskiest, have paid the highest premiums, while married drivers have paid lower premiums based on an expectation of safer performance behind the wheel.

But technology has begun to paint a much clearer, more accurate picture of driver behavior, along with better information on conditions impacting that behavior, like road conditions, night versus day driving, areas through which a vehicle travels, the vehicle’s overall roadworthiness, and other factors. All of this data combine to assign premium rates that more closely reflect the actual risk involved. As a result, everyone affected by auto insurance rates stands to benefit from this growing influence of telematics.

Benefits to motorists include:

  • Lower premiums – As risk factors are more accurately measured, based on driving behavior and location, rather than lifestyle, home address, and credit score.

  • Driver feedback – Reports and feedback from data generated can help drivers improve performance.

  • Connected cars – A vehicle with a telematics system may be connected to automatic emergency notification, a vehicle locator, and remote unlocking.

  • Theft protection – Telematics systems can track a stolen vehicle, prevent it from starting after the ignition has been turned off, or even reduce its speed during a police chase.

  • Transparent claim process – Accident data will help insurers identify who is at fault, making the claim process transparent.

Benefits to employers with vehicle fleets include:

  • Vehicle tracking – Fleet operators can better estimate the time of delivery accurately. Law enforcement can also use vehicle tracking to locate and retrieve a vehicle in case of theft.

  • Remote diagnostics – Telematics systems can inform fleet operators about maintenance requirements before a breakdown, thereby reducing costly downtime.

  • Driver feedback – Operators can track driver behavior and provide real-time feedback, preventing accidents, improving fuel efficiency, and enabling customized training to improve driver performance.

  • Fuel savings – Fleet operators can identify and retrain aggressive drivers, choose more fuel-efficient routes, or improve vehicle performance.

  • Network Optimization – Data collected can help fleet operators remove idle time in the system and reduce overheads.

Benefits to auto insurers include:

  • Accurate risk assessment – Insurance companies can calculate direct risks associated with driving styles.

  • Fight insurance fraud – Telematics can recreate the play-by-play actions of the events leading to accidents, and accurately ascertain who was at fault.

  • Reduce claim costs – Driver feedback and discount incentives for good driver behavior can result in a general improvement in driving habits that can lead to reduced claims.

Technology like telematics can make roads safer, performance more profitable, and insurance rates more accurate – and this technology is still in its early stages. To learn more about the advantages of telematics for your organization’s auto insurance coverage, contact the professionals at The Reschini Group.


Source: https://www.carinsurance.org/telematics-and-car-insurance/

Copyright 2023 The Reschini Group

The Reschini Group provides these updates for information only, and does not provide legal advice.  To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.


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Gillian Hadfield Gillian Hadfield

Year-End Means Crucial Time for HR Teams

As the fourth quarter approaches, a natural inclination may be to close out the year and look forward to the calming influence of the holidays at year-end – but not if your responsibility incudes Human Resources work, as the year-end period serves instead to create numerous areas of special focus and critical analysis.


The last months of the year are a great time for HR professionals to ensure they’re prepared for everything that needs to be done. It’s also an opportunity to evaluate which HR processes organizations want to take forward into the new year and which to leave behind. While certain HR compliance activities must be completed by the end of the year, HR professionals can also use this time of preparation to focus on tasks that will set their organizations on the right course for next year, such as:

  • Completing annual performance reviews

  • Asking employees to update their personal and contact information

  • Backing up HR data and personnel files

  • Establishing an annual budget and allocating resources

  • Reviewing recruiting and hiring processes

  • Creating plans for new hires

  • Measuring:

    • Employee engagement and satisfaction

    • Employee productivity

    • Turnover rate, including new hire turnover

    • HR growth compared to revenue

    • Average time to fill open positions

    • Offer acceptance rate

    • Promotion rate

    • Time to hire

    • HR-to-employee ratio

  • Checking on compliance with:

    • Employee classification

    • Personnel files

    • Employee handbook

    • Employment policies

    • Employment and labor law posters


Year-end activities can seem limitless, which may leave HR professionals feeling overwhelmed, and some tasks can be easily overlooked. By preparing early, HR can wrap up the year properly and set their organizations up for success next year.


For more information and guidance on successful year-end policies and practices, contact the Benefits professionals at The Reschini Group.


Copyright 2023 The Reschini Group

The Reschini Group provides these updates for information only, and does not provide legal advice.  To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.

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Gillian Hadfield Gillian Hadfield

Death, Taxes…and Identity Theft?

If our modern society has any assurances at all, the ever-increasing rate of identity theft can certainly be counted among them.  That fact makes insuring for what may feel like – but that does not need to be – an inevitability all the more prudent.

Here are some statistical highlights to underscore this:

  • The Identity Theft Research Center (ITRC) states in its Annual Data Breach Report that the U.S. saw the second-highest number of data compromises ever in 2022, impacting 422 million individuals.

  • The Federal Bureau of Investigation’s 2022 Internet Crime Report says a record 800,994 complaints of cybercrime were reported by the public that year, a 5 percent reduction from the year before, but with losses increasing to $10.2 billion, a significant jump from the 2021 total losses of $6.9 billion.

  • The Federal Trade Commission reported that it took in more than 5.1 million reports in 2022, about half concerning fraud and about a quarter concerning identity theft.  Of the identity theft cases, credit cards, online shopping, email and social media represented the leading avenues for this cybercrime.

  • The insurance industry fell victim to the most ransomware attacks in the first half of 2021, with telecommunications coming in second.

  • In 2020, nearly half of all Americans (47 percent) experienced financial identity theft, according to industry sources.

The threat is real.  The costs are substantial.  And prevention is possible.  Cybersecurity insurance may not act to stop identity theft entirely, but it can protect your financial interests and make recovery more manageable.

Contact the professionals at The Reschini Group for more information and guidance on securing the proper type and level of cybersecurity protection for your enterprise.

Source: https://www.iii.org/fact-statistic/facts-statistics-identity-theft-and-cybercrime

Copyright 2023 The Reschini Group

The Reschini Group provides these updates for information only, and does not provide legal advice.  To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.

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Gillian Hadfield Gillian Hadfield

Time Is Money: The Importance of Prompt Claims Reporting

You snooze, you lose.  The cautionary tone of that idiomatic phrase applies with special power when it comes to filing an insurance claim.  

When an event occurs that results in the need to file a claim for recovery of property, loss of income, or any other form of damage, the longer it takes to collect the required documentation, the more complicated an eventual settlement can become.  It only makes sense – why not get all the facts together, in written form, substantiated with additional verifiable forms of evidence, as quickly as possible, while the information remains fresh and more easily documented?

Trying to recollect and reconstruct the details of an accident, theft, fire, water damage, and so forth, may leave out key facts, lost to faulty memory or lack of visual proof long after the fact.  And when such seeds of doubt or omission get planted, recovering the full value of what had been lost faces hurdles – obstacles that could have been easily avoided.

In preparing to file a claim, first check with your insurance carrier to make sure you understand all of the documentation and other standards of proof that may be required.  Collecting the full complement of documentation is absolutely vital in helping the claim get processed and paid as seamlessly as possible – and the faster it’s submitted, the better.

They say speed kills?  Not in this scenario.  Here, delays can cause all the problems.  The very fact that you need to file a claim means you have already suffered a loss.  The recovery from that loss should not become another source of hardship, delay, or frustration.  Get your information together, make sure your insurer is on board and guiding you through the process, and get back on your feet promptly.


Contact the professionals at The Reschini Group for more information and direction on this subject.

Copyright 2023 The Reschini Group

The Reschini Group provides these updates for information only, and does not provide legal advice.  To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.


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Gillian Hadfield Gillian Hadfield

The Unusual Aspects of Hiring Seasonal Employees

They only come around once, maybe twice, a year, depending on what type of business we’re talking about.  But even though they may only be around for a month or two at a time, seasonal employees remain a vital part of operations overall – and the unique aspects of recruiting, training, and retaining them hold a special place in a business’ plans.

Seasonal employees can have high recruiting costs since employers need to recruit them each year, and many seasonal employees do not return once their employment ends. Organizations also generally have less time to train seasonal workers because of their relatively short employment period. As such, these worker may receive inferior training or no training at all, to reduce costs and save time. A lack of training could nullify any cost-savings, though. 

Various federal, state, and local employment laws and regulations apply to seasonal workers. For example, covered employers must comply with federal anti-discrimination statutes and wage and hour laws—including minimum wage, overtime, recordkeeping and youth wage program requirements—for their seasonal workers. In addition, state laws or local requirements may apply, such as unemployment insurance, severance pay, sick or other leave, personnel records, mandatory training, and predictive scheduling.

Seasonal workers need to be effectively onboarded to perform their responsibilities well, similar to regular employees. By dedicating sufficient time and resources to onboarding and training seasonal workers, organizations can set these employees up for success. To address potential productivity issues with seasonal employees, employers can train supervisors and managers to work with and manage them effectively. 

While hiring seasonal employees can help with surges in business activity, employers should think long-term. About half of all seasonal hires are interested in full-time positions, according to research from online employment platform Snagajob. Hiring employees on a temporary basis can be a good opportunity to determine if they are suited for long-term employment. Additionally, organizations can discover which seasonal employees may want a long-term commitment or are interested in returning next year.

It all depends on how the employer looks at the situation.  Are you plugging a short-term gap or setting your enterprise up for a long-term beneficial relationship?  The requirements and regulations will never go away, but your seasonal employees can and will – unless you give them a reason to want to return, whether for another temporary assignment or as a permanent part of your team moving forward.

Contact the Benefits professionals at The Reschini Group to learn more about the special strategies that apply to seasonal employees.

Copyright 2023 The Reschini Group

The Reschini Group provides these updates for information only, and does not provide legal advice.  To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.

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Cybersecurity Cybersecurity

Seven Steps to Improved Cybersecurity

Cyberattacks and the resulting data breaches represent significant risks, both financial and reputational, to businesses, with insurance industry estimates stating that the $3 trillion price tag currently could balloon to $5 trillion in 2024. Those figures include lost income and the payment of data breach-related regulatory fines.

According to the Insurance Information Institute*, cost-effective options exist to avoid falling victim to cyberattacks, such as:

  1. Understand your cyber risks. Businesses are vulnerable to cyberattacks through hacking, phishing, malware, and other methods. 

  2. Train your staff. Those engaged in cyberattacks find a point of entry into a business’ systems and network. A business’ exposure can be reduced by having and enforcing a computer password policy for its employees.

  3. Keep software updated. Businesses should routinely check and upgrade the major software they use.

  4. Create back-up files and store them off-site. A business’ files should be backed up either to an external hard drive or on a separate cloud account. Taking these steps are vital to data recovery and the prevention of ransomware. 

  5. Maintain firewall and antivirus technology. A business should evaluate the security settings on its software, browser and email programs.

  6. Establish a Data Breach Plan. A business should remind its employees to review periodically the data breach detection tools installed onto their computers. If a data breach occurs, employees must notify the business immediately to prevent further loss.

  7. Secure insurance coverage to address cyber risks. Cyber insurance coverage typically provides protection for costs associated with data breaches and ransomware.  

The threat of cyberattack never goes away, so neither should your defenses against it.  Contact the professionals at The Reschini Group to learn more and take the appropriate steps to protect your business interests 

https://www.iii.org/press-release/is-your-business-cyber-resilient-iii-offers-7-ways-businesses-can-reduce-their-risks-100819

Copyright 2023 The Reschini Group

The Reschini Group provides these updates for information only, and does not provide legal advice.  To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.

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Understanding Business Interruption Insurance Coverage

“Here today, gone tomorrow.”  An old familiar phrase, but never a welcome one when it pertains to a business.  But should the worst happen, an option to keep your business on its feet is readily available.

Business interruption insurance helps businesses protect against monetary losses due to periods of suspended operations when a covered event, such as a fire, occurs and causes physical property damage.  The coverage allows businesses to pay fixed expenses, including costs incurred while operating at an offsite location, while the property is closed for repairs and restoration.  Policies also reimburse owners for lost revenue that would have otherwise been earned if the business remained open. 

Business interruption coverages are typically bundled within a businessowner’s policy (BOP), a commercial package that includes business property and liability coverages or a standalone Commercial Property policy.  Most insurers offer this coverage feature for accounts that they are willing to insure. 

According to the Federal Emergency Management Agency (FEMA), about 25% of businesses fail to reopen after a disaster strikes, making business interruption coverage even more critical for the long-term survival of an enterprise.  While commercial property insurance pays for actual physical damages or losses, a business interruption policy covers lost net income due to the closure of the business while repairs are underway, as well as offering coverage for rent or lease payments, relocation costs, employee wages, taxes, and loan payments.  Exclusions from coverage include losses unrelated to property damage, such as lost revenues due to viral outbreaks or pandemics.

Business interruption policies may contain a clause for civil authority coverage, as well, meaning that if a state, local, or federal government entity prohibits access to the business premises, thereby forcing the business to temporarily close, this clause in the business interruption insurance may cover lost income. 

Should a calamity strike, you certainly want to be able to say about your business, “Here today, still here tomorrow.”  Business interruption coverage holds the key.  Contact the professionals at The Reschini Group to learn more and determine the right plan for your business.

https://content.naic.org/cipr-topics/business-interruptionbusinessowners-policies-bop

Copyright 2023 The Reschini Group

The Reschini Group provides these updates for information only, and does not provide legal advice.  To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.

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Which Consumer-Driven Health Plan Is Right for Your Business?

Consumer-driven health plans like health savings accounts (HSAs), flexible spending accounts (FSAs), and health reimbursement arrangements (HRAs), can help soften the blow of continually rising health care costs, but it’s important to understand what each option requires and provides. Here are brief descriptions of the similarities and differences concerning HSAs, FSAs and HRAs:

HSAs

Due to their tax-favored status, HSAs require individuals to meet these qualifications:

  • Be covered by a high deductible health plan (HDHP)

  • Not have any other health coverage (with some exceptions)

  • Not be claimed as a dependent on another person’s tax return

  • Not be covered by Medicare

The employer and employee can contribute to the HSA in the same year, subject to annual limits. Employers may allow employees to make pre-tax salary reduction contributions to fund their HSAs. Individuals may roll over unspent funds in the HSA from year to year.  Since the HSA is a tax-exempt account owned by the employee, he or she may keep the account upon termination of employment or retirement.

FSAs

Health FSAs provide a means for employees to reduce their income tax liability through salary reduction. The Affordable Care Act (ACA) limits employee’s pre-tax contributions to their health FSAs to $3,050 (adjusted for inflation for future plan years). Since only employees can participate in a health FSA, self-employed individuals can establish health FSAs for their employees, but cannot set up their own accounts.  Also a “use-it-or-lose-it” provision, meaning that employees must use every dollar in the account by the end of each year, which can lead to overfunding the account and then spending unnecessarily at the end of the year to avoid forfeiting the money. Some options for protecting those unused funds exist, but it is best to check with a qualified benefits expert first.

HRAs

HRAs allow employees to use employer contributions to pay for (or reimburse) eligible medical care expenses. HRAs can only be funded with employer money, and unused HRA balances may accumulate from year to year. There is no specified cap on the amount an employer is allowed to contribute to an HRA. Also, an HRA is not subject to the uniform coverage rule that applies to health FSAs. Like health FSAs, only employees can participate in an HRA, which means that self-employed individuals cannot participate in an HRA on a tax-favored basis. 

Introducing consumerism into your health plan requires an evaluation of the benefits and disadvantages of HSAs, FSAs and HRAs. No single solution is right for every employer. If your organization is considering implementing a consumer-driven health plan, the Benefits team at The Reschini Group can help determine the best plan for you.

Copyright 2023 The Reschini Group

The Reschini Group provides these updates for information only, and does not provide legal advice.  To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.

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In the Press Gillian Hadfield In the Press Gillian Hadfield

Reschini Adds Two Vice Presidents

The Reschini Group added two senior staff members: Sarah Ramer, Vice President of Human Resources and Doug Sweeney, Vice President & Account Executive. Ms. Ramer will work from the Reschini home office in Indiana, Pa., while Mr. Sweeney will work from the Pittsburgh Office. 

“Talent acquisition and management is critical to continue to build our business and support our customers. Sarah brings a wealth of experience to help us build and retain the best team possible,” said Joe Reschini, President of The Reschini Group. “Doug’s depth of knowledge of complex insurance structuring and financing will help us continue to expand our customer base by providing the property/casualty coverage and consultation our customers need.”

Ramer has extensive experience in the financial services industry with a focus on talent acquisition, employee relations, performance management, and design and administration of compensation. A board member of the Indiana County Area Society for Human Resources Management, she is a Certified Professional through the Society for Human Resources Management (SHRM-CP). She is active in Indiana County Young Life and Summit Church.

Sweeney works with organizations of all sizes, both commercial and municipal, to plan and place property/casualty programs. Well versed in the financing structures of insurance as well as assessing potential exposures, he helps his customers minimize risk while understanding their best options for funding. He has worked with large insurance carriers and has experience in underwriting and managing programs. Sweeney earned a Bachelor of Science degree in Insurance/Risk Management from the Pennsylvania State University and a Master of Business Administration with an emphasis in Information Systems Management from Duquesne University.


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Cybersecurity Cybersecurity

Insurers Are Partners in Mitigating Cyber Risk

Cybersecurity risks continue to expand nearly unabated. While it can feel like trying to hold back a tidal wave with a bath towel sometimes, effective tools do exist and can be easily accessed.

What must always be remembered is that a commitment to resilience and pre-emptive mitigation remains imperative. Insurers are well-positioned to serve not only as financial first responders but as partners in managing these evolving hazards, along with their business associates and partners.

According to the Insurance Information Institute, “The first line of defense is creating a robust cybersecurity system, training employees on how to identify a potential attack, encrypting company data, and enabling antivirus protection. With only half of businesses reporting a consistent encryption strategy, and the cost of data breaches continuing to rise, organizations must do more to protect themselves and their customers.”.

Some commonly seen cyber liability risks include:

  • Liability—You may be liable for costs incurred by customers and other third parties as a result of a cyber attack or other IT-related incident.
  • System recovery—Repairing or replacing computer systems or lost data can result in significant costs.
  • Notification expenses—In several states, if your business stores customer data, you’re required to notify customers if a data breach has occurred or is even just suspected.
  • Regulatory fines—Several federal and state regulations require businesses and organizations to protect consumer data.
  • Class action lawsuits—Large-scale data breaches have led to class action lawsuits filed on behalf of customers whose data and privacy were compromised.

To extend cyber liability insurance coverage requires the purchase a stand-alone cyber liability policy, customized for your business to cover several types of risk, including:

  • Loss or corruption of data.
  • Business interruption.
  • Multiple types of liability.
  • Identity theft.
  • Cyber extortion.
  • Reputation recovery.

Contact the professionals at The Reschini Group for more information and guidance on obtaining the proper level of cyber liability insurance coverage for your situation.

Copyright 2023 The Reschini Group

The Reschini Group provides these updates for information only, and does not provide legal advice. To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.

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