Misconceptions About Cyber Liability

Cyber liability coverage (for data breaches) has evolved from just insurance for information technology companies to coverage that nearly every kind of business should have – if they don’t already. From retailers, banks, contractors, distributors, restaurants and medical offices, many companies are unaware of the severe data breach exposure they face. In short, any business not making an effort to protect personal private information is seriously out of step with the emerging landscape of privacy laws.

Cyber Liability Misconceptions

  1. Only large retailers need the coverage. Wrong- Businesses with fewer than 50 employees are the latest targets of cyber thieves. Often small businesses fail to have adequate protection making them an easy target. Companies with less than 75 employees endured 70% of the total attacks.
  2. Traditional business liability insurance will cover cyber liability. Wrong- Traditional liability insurance does not cover your business for internet exposure or data breach.
  3. If we have a breach, it is not that big of an issue. Wrong- A cyber breach can cost tens of thousands of dollars. The average notification cost per exposed record per person averages $250. All states now have laws that make it the responsibility of the company to provide indemnity recovery help. You may end up having to secure identity theft insurance for every breached record.
  4. My company does not store credit card information; therefore, I don’t have any risk. Wrong- Confidential information is defined as any personal information including addresses, email, social security numbers, Federal ID numbers, family member information, bank information and more.
  5. We don’t use the internet for business and therefore don’t have any exposure. Wrong– According to the 2011 Data Breach Investigations Report by Verizon, 9% of data breaches that occurred were started by an employee or other internal sources.

Cyber liability risks are real, and every business is exposed. It is time to call us for a review of your business insurance program.

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Happy Thanksgiving

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Church Board Failures

Being selected to serve on your church board is a great honor. It can be a rewarding ministry and provides one of the most valuable services to the body. Serving on a church board can really have a meaningful impact but also have some dangers. We have seen many boards get caught in traps, and in the end, the body suffers. Take heed to these. Do your best not to get caught in the traps. 

Trap 1- Individual agendas; don’t allow individuals to push their personal agendas, like pushing change in leadership at their first meeting, wanting to change doctorial issues to name a few. The solution, always focus on God’s agenda.

Trap 2-  Filling a position rather than finding people of integrity; sometimes it might actually be better to let a position go for a period of time rather than fill it with an unqualified or immature individual.

Trap 3-Following church tradition rather than Biblical instruction; many churches tend to operate under a sense of “that’s the way we have always done it”. Never let church tradition get in the way of Biblical standards.

Trap 4- The pastor is God, don’t question him; I am not saying boards should not follow the pastor, pastors need to. But the pastor is a man, the board’s responsibility is to lead and manage with open honest communication. Don’t just blindly follow one man, unless that man is Jesus




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Your Employees Driving Record Can Damage Your Ministry’s Reputation

A Commercial Insurance Review

When an employee gets into an accident while driving a company vehicle, there are many implications for your business. Depending on the accident an employee’s CDL can be suspended, canceled or revoked.

Employers are often caught in the middle especially if the employee in question has a good track record.

What Can Employers Do To Protect Their Business?

  • Establish guidelines for reporting major violations
  • Develop a company policy regarding driving accident and violations
  • Check MVRs annually
  • Develop a company policy for “occasional” drivers (for example, office employees who may drive to the bank or post office during the course of their work.)
  • Complete a thorough background check on al potential employees
  • Institute radium drug testing of all employees.
  • Provide driver training programs
  • Develop guidelines for the use of personally owned vehicles on company behalf.

Whether your company needs to purchase Commercial Auto Insurance on one vehicle or a fleet, there are solutions for you. We understand you may have questions regarding Commercial Automobile Insurance and we are ready to help you.

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Youth Ministry Risk Management

Risk Management that could have helped Penn State and Syracuse University sports teams.

The awful discovery these past few weeks from prominent Universities and iconic head coaches like Joe Paterno and Jim Boeheim that their immediate staff was potentially abusing children was quite sad. Unfortunately these circumstances are not isolated and could happen to any of us. Hopefully none of us have a friend or associate that is open to this type of offense but do you realize how much you and I have in common with these institutions?

These well known, long standing leaders in their field did not commit the physical crimes against children.  However, they are responsible and liable for their own actions when there is even a hint that someone is abusing a child.  These terrible events are a reality check for all of us that are involved with youth in a sports, church or ministry setting, that no one is invincible.

Most of my church and ministry clients are involved with teams/leagues/youth programs in one-way or the other. Are you a coach, athletic director, team mom or a church elder or pastor on the side-lines?  Whatever your position, today is the day to step back and realize exactly where you fit into the lives of the kids participating in your youth programs.  You are there to protect them at all costs.

There is a major article from Sports Illustrated years ago quoting actual predators in youth programs saying “This is how we got away with it …this is how you protect your kids.” (Example from the article, did you know, Studies have found that the average preferential molester victimizes about 120 children before he is caught?

Several useful Risk Management guidelines that can be implemented today in your organization include;

  • have all of your staff attend a safe kids training course or reference our children’s worker application form
  • never have a child (other then your own) in the room or car alone with you
  • while transporting kids, always have another parent or adult in the car
  • ask for references when interviewing potential new children Sunday School staff
  • ask open ended questions if kids are exhibiting strange, different or fearful behavior in your class

There is no more difficult situation to navigate in a church or ministry setting then knowing the correct thing to do when it comes to children that may have been victimized. A failed reporting to the appropriate authorities opens up your organization to great financial risk. Filing a report against a potentially innocent staff member can be devastating and career ending. But as a staff or volunteer leader you are there to protect the children.

Church Fires Can Destroy A Ministry

Most every Church owns business property, which may include the building in which you run your operations. Property insurance protects the physical assets your business owns – such as computers, office equipment, buildings, furniture, fixtures, and other property. Every business should have a comprehensive property insurance portfolio to respond to the many risks associated with property ownership.

We hope to help you indemnify a proactive plan in the event of a fire, theft, storm, or some other kind of damage that might involve your business insurance policy. There are a number of actions you can do to help get the best possible settlement from the insurance company.

Pre-Loss Practices

• Maintain vital records
• Have photos of all buildings, major equipment, etc
• Blueprints- keep complete sets
• Keep at least 5 to 10 years of financial records
• Appoint key individuals as communicators
• Have emergency response plan
• Secondary locations identified

During The Loss

• Notify the insurer
• Protect the property
• Track claim costs
• Separate budget line items
• Keep records of all internal and external costs
• Make temporary repairs
• Communicate with insurer as to the use of any consultants
• Meet regularly with the agent and Insurer
• List and address key issues and concerns
• Note any changes from original design
• Will you rebuild or not?
• What might cause delays?

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Earthquake Insurance… Just The Facts

Everyone knows they need earthquake insurance, but not every business buys it. Let’s review some facts.

  • The U.S. has about 20,000 earthquakes a year, mostly small, and 42 states are at risk of quakes, according to the U.S. Geological Survey.
  • Just 10 percent of California businesses with property insurance also carry earthquake coverage, according to a recent Napa Valley Register story.
  • Global losses from earthquakes were about $313 million in 2014, higher than 2013 losses of $45 million but far below 2011’s $54 billion, the highest amount ever recorded, according to Swiss Re.
  • Insurance Coverage for Earthquakes in the United States: Standard business insurance policies do not cover damage from earthquakes. Coverage is available either in the form of an endorsement or as a separate policy. Earthquake coverage is available from private insurance companies rather than from the government.
  • 2018 forecast from the U.S. Geological Survey (USGS) has upped the likelihood that California will be hit by a magnitude 8 earthquake over the next 30.The most recent calculations differ from those in the earlier USGS forecast in that scientists took into account the possibility that a quake can move from one fault to another, releasing more seismic energy, as well as including newly discovered fault zones. Scientists also said that the probability that the state will be shaken by a magnitude 6.7 quake, similar to the devastating 1994 Northridge temblor, is higher than 99 percent.
  • Most commercial earthquake policies for businesses have a deductible that is based on the value of the building insured. They commonly range from 5 to 20 percent
  • If an earthquake collapses your foundation, you’re not covered. If the earth shakes and a sinkhole swallows your business, you’re not covered. If the earth causes your merchandise to falls off the shelves, shattering on the floor, guess what? you are not covered.

Some information provided by the Insurance Information Institute.

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Workers’ Compensation Best Practices

Business owners go to great lengths to provide a safe working environment for their employees. However, when dealing with humans, accidents can happen, and Workers’ Compensation Insurance can help.  Workers Compensation Insurance should be an important part of every risk management program.

What Is Workers’ Compensation?

Workers’ compensation insurance is insurance that provides lost income, medical benefits, disability benefits, and rehabilitative services for workers injured on the job or while performing work-related duties.

Why Your Business Needs Workers’ Compensation Insurance

When an employee gets hurt on the job or has a work-related illness, only workers’ compensation will cover them.  Health insurance benefits will not provide coverage for on-the-job injuries.

What Is the Best Way to Keep Costs Down?

  • Provide training for hazardous work, especially for new or inexperienced workers.
  • Enforce safety rules and practices.
  • Enforce drug and alcohol rules.
  • Require safety equipment to be worn at all times.
  • Keep work areas clean.
  • Workers should not wear loose clothing or jewelry around machinery.
  • Where required, workers must wear protective equipment such as goggles, safety glasses, masks, gloves, hairnets, etc. appropriate to the task.
  • Safety equipment such as restraints, pullbacks, and two-hand devices are designed for worker’s protection. Be sure such equipment is adjusted for each worker.
  • Do not ever remove machine safety guards.
  • Develop a system for reporting unsafe practices.
  • Have monthly safety meetings that review safety issues and related topics.
  • Create accident investigation procedures that focus on prevention and change.

Christian Ministries Insurance was created specifically to serve Christian churches, schools and other related ministries. Our mission is simple; provide comprehensive insurance products at competitive prices while building a solid relationship with our clients. We do this through our day to day service, scheduled meetings,

Reduce Your Ministry Insurance Costs

Reduce Your Ministry Insurance Costs

We offer a number of proven methods of reducing insurance premiums without affecting coverage.  We recommend a review of your program to determine if these areas can be managed differently to reduce costs. We are ready to help you work through the process.  Here are six methods we can recommend for you to consider.

Business Insurance

Merge insurance policies – Consolidating auto, property and liability under one policy can provide “package” credits.

Automobile Program – Make sure all your commercial vehicles are “classified” correctly. For example, having a pick-up classified as a commercial delivery truck can increase costs. Consider self-insuring physical damage coverage on certain vehicles.

Workers’ Compensation – If you have had large losses, it could be beneficial to have a third party medical bill review completed.

Increase Deductibles – Consider increasing your property deductible to $5,000, or even $10,000.  Also, think about increasing auto deductibles on older vehicles. If your losses are low, over time you might save enough in premiums to pay for future losses.

Have us complete an audit of your entire program – We can evaluate exposures your company has, and discover what options would be best for your individual needs. We can become the second set of eyes to uncover exposures not currently addressed.

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How Your Ministry Can Recover From a Natural Disaster

Hurricane Harvey’s impact will be felt for the next three to five years, or even longer.  Many affected businesses may not survive.  It is our hope that all the people and businesses impacted by Harvey will recover as soon as possible.  For those businesses that had flood insurance, the recovery will be helped through the insurance resources.  There are other kinds of disasters, or losses, which can cause your business to be shut down.  Now is the time to have us complete a business insurance review. We can offer many coverage and pricing options for your business.

Disaster Planning for Your Business

  • Review your commercial insurance. Being proactive can help in the end.  We can help you determine what coverage is best suited for your individual business needs.
  • Put together a crisis team and a plan. Design a plan for the kinds of disasters you are likely to have.  Have contingency plans for continued operations. This may mean developing agreements with other businesses for use of their facilities or locations for a short term.
  • Meet with your insurer as soon as possible. Developing a relationship with your claims adjuster is critical.  Be willing to provide all information required.
  • Request an upfront partial payment. This will help you fund your recovery.
  • Be prepared to document all expenses. It might even help to hire an accountant to help you with post loss expenses and documentation.




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