Give the gift of EPLI for the holidays!

How many times do we all hear the phrase, "I don't have to worry about EPLI lawsuits in my office"? Or the classic, "For that price I will take the risk."

So what information can we give you to help you help you clients? What can we provide you that will convince your clients that EPLI is needed now more than ever?
For one, try reading the recent article found in National Underwriter magazine called just that - EPLI Needed Now More Than Ever. Next, our friends at National Underwriter have another article in the same online issue about how the 'Recession Creates EPLI Demand'. (If you are not already receiving these online news updates, you should). This suggested reading can provide useful tips.

EPLI Insurance is that "extra" that clients seem to think they don't really need. It is that piece they feel, especially when times are a little difficult and they are trying to cut costs, they can probably do without. As their agent, how do you talk to them about the importance while keeping costs down?

What about all of those Holiday Parties? People that typically don't drink may tend to 'take a sip or two' more than usual around the holidays and let their guard down around other employees and/or employers. Reduced inhibition can lead to situations that create the potential for lawsuit. Comments or jokes made when someone has had a few too many drinks that are misinterpreted by another employee who is sober often lead to trouble.

Defense costs can be costly. Forget about the settlement which obviously can be extremely high in many instances. How will your client defend themselves? How will they protect their reputation?

But, your client doesn't need EPLI, right?

This is the time of year for celebration, jubilation, thanks and good tidings. But it is also the time of year to take a moment and realize that one mistake - or even one person claiming a mistake - can take it all away.

How can they afford NOT to have EPLI?

Jimcor's Professional Liability Specialists are available to assist you and your staff with placing this coverage as well as numerous other professional liability classes.

Call today for more information or click here for a representative near you.

The New "SEXY" Insurance

Cyber Liability is the new “sexy insurance” according to the National Underwriter P&C Magazine.
Sexy you say?
Well – those who have had losses I am sure do not find anything sexy about Cyber Liability. They just wish they had it!

Let’s take a look at the case in Minneapolis where a laptop was stolen out of a car. Most medical data includes all (if not some basic form) of an individual’s identity. That can include their social security number!
In the case in Minneapolis, the medical information had been shared with a third party and was presumed to be safe. However the third party did not encrypt the data. Therefore when the laptop was stolen the data was available to anyone and everyone.
So here are the questions – why was this third party able to download data and not have it encrypted? Was it written anywhere that it had to be encrypted? Who monitored the transaction of data?
As more questions from this case arise each day one thing is for certain – patient’s identities were stolen. Who knows how or when or why they will be used – but the information is out there in someone else’s hands.
The first step for the third party company was to contact the patients affected by this horrible situation. Once these parties were contacted some in the firm could begin looking at the how, why and when the event occurred.
“Notification costs usually end up being the biggest hit in these cases” shared Joe Schneider, RPLU and Jimcor’s Professional Liability manager.
“What people and companies don’t realize is that even if nothing went wrong and they took every safeguard – they may still have to notify clients that data has been compromised.”
Schneider continued that some carriers are simply adding on a data breach or cyber liability “rider” as part of the general policy. However clients need to understand that liability limits can be eroded by data privacy losses.
“With notifications making up the majority of the initial costs , usually averaging over $200 per record, it’s no wonder this coverage is being mentioned every time agents talk to their prospects or clients. If an agent is not mentioning this coverage they are not only losing an opportunity, they may be exposing themselves to an E&O claim.”
Schneider also explained that insurance agencies should all have the coverage in place for their own offices. Many go uninsured – and hopefully will see the need before they are hit with a loss.

So… back to this being “sexy insurance”… when you think about it what’s so sexy about losing someone’s identity and then having to pay the costs and fees to help them protect the information and get their lives back on track?

You read the article and decide if this is something you think your agency needs – or your clients’ need. If so call us or email Joe Schneider today.

Star Tribune article

Property Casualty 360 article

Special thanks to Business Insurance for the great cartoon!