The Reschini Group’s website, www.reschini.com received an exciting upgrade and redesign over the holiday weekend.
The new site features a dynamic responsive homepage with clickable links to the most important content pages and functionality you may use for your customer service or informational needs:
The website also features resources about many key issues your organization may face regarding Property and Casualty, Employee Benefits, or Cybersecurity issues. Plus, the site archives the Reschini blog – a useful library of pertinent information about recent issues in the market and economy.
Covering the Recovery: Business Interruption Insurance
By Mike Drew, The Reschini Group
Business Interruption Insurance for Operational Recovery
Through an accident, a fire, a natural disaster – the cause of the event can be any number of things – you have lost your property and inventory required to conduct a profitable business.
As if that weren’t enough of a setback, you quickly come to the realization that, without those essentials, there remains no way to generate future income until your property and inventory can be rebuilt and restocked.
Business interruption insurance replaces revenue lost when a company cannot conduct business after a catastrophic event. Terms of a specifically written policy determine how much in lost revenue can be provided on a per-diem basis, to cover expenses that may include mortgage and insurance payments, employee payroll, and others. This specialized segment of insurance coverage can be purchased on an annual schedule, and can extend beyond the timeframe required to repair or replace the directly damaged property.
The key elements of a favorable claims settlement would be the policy language being written broadly enough to cover the business expenses and profits that the owners want covered for the period of time needed to resume normal activities. Claims are then settled based upon the details in the policy language, so policyholders may prefer very broadly written coverage, sufficient to handle a true catastrophe.
Once a claim is filed, a brief waiting period must be observed after the loss is suffered by the business – think of it as the equivalent of paying a small deductible – before payments to cover any lost revenue can begin.
Any discussion of business interruption, however, must also include a reference to coverage for extra expenses the policyholder may incur beyond normal operating expenses during the period of restoration that reduce the amount of loss-related expenses incurred to mitigate damages. These “extra expenses” may include generators, temporary office space and computer equipment, overtime wages, employee meals outside of normal workdays, and expediting expenses necessary to speed the replacement of machinery, equipment or other personal property.
Insurance exists to help keep people and their enterprises on their feet, should the unthinkable happen. Business interruption insurance fulfills that role in striking fashion. It’s worth the investment, to safeguard your larger investment.
The professionals at The Reschini Group can help talk you through how business interruption insurance can be used to protect your company, including value-add services such as disaster recovery planning and business income worksheets to more accurately plan for a worst-case scenario. Contact us at 724-349-1300 to set up a time to talk.
Copyright 2017 The Reschini Group
The Reschini Group provides these updates for information only. To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.
The Blind Side
Protecting Yourself From Online Data Breaches
By The Reschini Group
Attacks can come from unexpected directions. A right-handed football quarterback, for instance, had better hope that the left side of his offensive line can block the onrushing defense; otherwise he’s sure to be hit on his blind side.
The same rules apply when it comes to managing the risk regarding online data breaches. Most businesses realize this and have taken some steps to prevent damage, but there’s always a new “blind side” coming around the bend.
Managing the data breach risk posed by cyberattack only promises to become more difficult and challenging, as rapid and unending changes – that can make conducting business more efficient in many ways – can also open fresh doors for those with malicious intent. What’s worse, a cybersecurity breach could result from simply misplacing a laptop or smartphone containing sensitive data.
In a dramatic example of the need for diligence in HIPAA data protection policies, a provider of diagnostic imaging services discovered that one of its folders containing patient information was accessible to the public via the Internet. As a result, more than 300,000 patients’ billing information may have been exposed for months before the provider realized its error and removed the folder from public view.
The oil and gas industry faces potential exposure to data breach risks, in one example, from subcontractor personnel working onsite, with the possibility of sensitive information on customers and financial data being accessed and shared. Yet the unwanted release of private information – while damaging enough – may not represent the worst part of a data breach. That comes with the cost to repair the damage after a breach has occurred, in most cases.
Addressing cyberattacks varies by state, but in Pennsylvania, every data breach requires notification of every individual potentially affected, representing enormous costs in communication, credit repair, and image restoration. According to the 2015 Cost of Data Breach study*, conducted by IBM, the average recovery cost per lost or stolen record ranged between $145 and $154. The same study found the average consolidated total cost of a data breach is $3.8 million, a 23% increase since 2013.
Let the experts at The Reschini Group help to ensure that all of your cyber flanks are covered properly. Don’t take an unnecessary and expensive hit from the blind side.
Copyright 2016 The Reschini Group
* http://www-03.ibm.com/security/data-breach/
The Reschini Group provides these updates for information only. To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.
