Business Liability Insurance

Data Breach! Protect Your Maine Business With Cyber Liability Insurance

Posted on by Bob O'Brien

 

Every week we hear news of another household brand name suffering a data breach. Hannaford, Target, TJ Maxx, Shaw’s, Home Depot…the list goes on.

But local businesses are not immune from hacking. Many Maine small businesses – and their customers – were shocked recently to hear about a breach at two Portland, Maine locations of Otto Pizza, a local favorite.

Otto Pizza responded to the breach candidly, and with personal comments that struck at the heart of any local business owner:

Quote from Otto Pizza about theft of their customers' data

Cyber attacks are a constant threat to your Maine office, retail store or professional practice. You no longer have to be a “big fish” to be a target. Hackers, phishers and the like are always looking for low-hanging fruit in the form of networks with poor security. After beefing up your security, you should insure your Maine business against data breach in case it does happen.

How Do Data Breaches Happen?

Some common scenarios that can lead to data breach in your business or professional practice:

  • Unauthorized access – hackers gain access to your POS system or computer network.
  • Theft of Computers – Someone steals your laptop, backup data or server that holds customer or employee personal information.
  • Improper Disposal of client or patient records.
  • Human Error – your bookkeeper mixes up 1099 forms and mails them in the wrong envelopes, exposing personal information to others.

 

Sobering Data Breach Statistics

 

infographic: Statistics about business data breaches

 

 

 What Does Data Breach Cyber Liability Insurance Pay For?

What does Cyber Liability Insurance pay for?

Cost of Maine Cyber Liability Insurance

Data breach protection is a surprisingly affordable addition to most Maine small business insurance portfolios. Coverage for basic limits such as $10,000 first party and $25,000 third party are available for premiums as low as $150 per year.

What to Do in Case of a Data Breach at Your Business

  1. Notify the police immediately
  2. Report the breach to your business insurance agent or company
  3. Take all steps to protect any confidential data remaining in your control.
  4. Preserve all evidence of the breach itself.

For answers to your Maine business insurance questions, including data breach and cyber liability insurance, contact a Noyes Hall & Allen agent in South Portland at 207-799-5541. We represent many insurance companies so we can help you find the best insurance fit for your business and budget. We’re independent and committed to you.

FMI:

Payment Card Security Standards

CyberRisk 2014 White Paper by Insurance Information Institute

Does Your Home Insurance Cover Short Term Rental?

Posted on by Bob O'Brien

From Portland to Cape Elizabeth, Pine Point to Sebago Lake, peer-to-peer rental services are very popular in Maine. Recent articles in the Portland Phoenix and Portland Press Herald suggest that the practice is increasing. Does renting your Portland Maine area home, apartment or condo via a short term rental service like AirBNB, HomeAway or VRBO affect your insurance? You bet!

rentme

You’ll Have Almost No Coverage for Your Stuff – Ever!

If you regularly rent your home or part of it, most Maine homeowners insurance policies limit coverage for your personal property (stuff) to $2,500 per unit. If your place burns down, or is damaged by a storm, you’ll have very little insurance coverage to replace  your belongings, furnishings, appliances, clothing, sporting goods or tools.

Even worse news: your home doesn’t have to be rented at the time. It only has to be “regularly rented or held for rental”. Does listing your home on a website with a calendar of availability make it “regularly held for rental”? The insurance company might say so.

You May Have No Liability Protection Either

Do you rent your entire home more than “occasionally”? If so, you have no liability coverage on your homeowners policy. What’s occasionally, you ask? The policy doesn’t define that. Nervous yet?

Do you rent part of your home or condo to someone who brings more than 2 others? Homeowners insurance policies exclude liability coverage completely. If your tenant or their guest gets hurt, who do you think they’ll expect to pay their medical bills, lost wages and pain & suffering? Even if you aren’t at fault, you might have to hire a lawyer to defend you.

Does the Peer-to-Peer Network Protect You?

We haven’t seen any insurance agreement that covers you where your homeowners, renters or condo policy does not. We have seen one that completely replaces a homeowners policy with a commercial insurance policy, at a higher cost. If you rely on protection from the peer-to-peer site, we recommend that you read their insurance contract very, very carefully.

Can Your Insurance Company Cancel Your Homeowners Policy if You Rent Your Property?

Many insurance companies believe that their ordinary homeowner’s insurance rates are insufficient to pay losses resulting from renting your home. They may ask you to stop renting or to make changes in your home. If you fail to comply, they may cancel your policy. That may tempt you to not tell your insurer about your rental income, and hope for the best. That’s taking a big risk.

We recommend that you talk to your Portland area insurance agent before you rent your home. They can discuss options for properly insuring you against catastrophic loss. It may cost a bit more, but at least you’ll know you have coverage.

For more information about Portland Maine homeowners, condo or renters insurance, contact Noyes Hall & Allen at 207-799-5541.

Party Time! Does Maine Homeowners Insurance Cover Renting a Hall?

Posted on by Bob O'Brien

 

It’s party season in Maine. Many of our clients will host a Bar Mitzvah, wedding, baby shower, reception, anniversary party, memorial service, graduation party, or fund raiser. They’ll rent a church hall, function hall, camp, country club, college or city building. And, they’ll call us for insurance advice.

The Good News: You’re Covered!

If you bought  homeowners, condo or renters insurance from Noyes Hall & Allen, your policy says:

6. “Insured location” means:
h. Any part of a premises occasionally rented to
an “insured” for other than “business” use.

Those terms in quotations are defined in your insurance policy. If your policy has your name on it, you’re an “insured”. If you’re not profiting from the function, it’s not a “business”.

Boom! Your Noyes Hall & Allen homeowners policy covers your liability from the function and the hall rental.

The Function Hall Should NOT Want to Be an Additional Insured

Every venue should have a rental contract. Most  contain “hold harmless” clauses. That means you agree to be responsible for what happens while you’re renting the premises. Scary? Maybe, but unless you want to have everyone at your house, you don’t have much choice.

Some venues ask to be an “additional insured” on your homeowners insurance policy. Additional insureds are common on Maine business insurance policies. That makes sense, since businesses operate various activities in many locations. It’s not the same on a personal policy.

That Word

The Additional Insured form on a homeowners insurance policy (HO 04 41) is different. It limits “insured” status to others to your home. In other words, it’s useless in a case where you’re renting a function room. No homeowners insurer that we are aware of allows “additional insured” status for cases like this.

Also, remember the “business” exclusion on the homeowners policy? That applies to all “insureds”. So your homeowners policy excludes the owner of the function hall from coverage as an insured anyway.

A function hall shouldn’t ask you to list them as an “additional insured”. Tell them we said so.

Let’s Keep it Simple

Your Maine homeowners insurance is a broad and powerful tool. It protects and defends you against injury and damage you’re liable for. That includes liability you assume by a contract.

You signed a rental contract for the hall. You agreed to hold the owners harmless for what happens during your function. If someone sues the owners for an accident at your function, they will turn that lawsuit over to the responsible one: you. And, your homeowners insurance will protect and defend you.

This is all INCLUDED in the homeowners, renters or condominium insurance policy you already have. You should only need to prove to the hall that you have insurance. Call us, and we can do that for you.

What About Liquor Liability?

Homeowners policies cover you for what happens on the premises. They exclude liability from auto accidents. Look to an auto insurance policy first for that coverage. The driver’s auto insurance would protect you AND them. If the driver doesn’t have enough insurance, your own Maine auto insurance should also protect and defend you. The coverage and damages can vary greatly depending upon individual circumstances. Talk to your Maine insurance agent for individual advice.

Pro Tip: Hire a professional bartender. They’re trained to recognize when someone has reached their limit. Ask them for a certificate of liability insurance. Mingle with your guests and enjoy your party, instead of stressing out!

Do I Need Wedding Insurance?

Wedding insurance is a different product. It covers the additional costs created if your venue closes, your photographer or band cancels, or some other calamity happens. That’s different that the liability issue we’ve been discussing.

If you live in the Portland Maine area and have questions about renting a hall, wedding insurance, or other insurance questions, contact a Noyes Hall & Allen Insurance agent at 207-799-5541. Noyes Hall & Allen represents many of Maine’s preferred insurance companies, and offers choice and professional advice. We’re independent and committed to you.

Insuring a Maine Condo Rented to Others

Posted on by admin

 

Do you need to insure a condominium in Maine that you rent out as income property? Insuring condos can be complicated. Your condo association has a master insurance policy. You have a unit owners insurance policy. Your tenant should have renters insurance. Which policy pays if your unit suffers water damage, fire, or other covered loss?

What’s Insured by the Condo Association Master Policy?

The master policy will cover building portions as prescribed by the bylaws that govern the association. Some associations insure the entire building complex (known as “all in” in insurance jargon). Others require a unit owner to insure the interior of their unit, everything inside the studs. Still others only require the unit owner to insure improvements and betterments made to the condo after it was built. Check your association bylaws and insurance policy to see which applies to you.

What’s Insured by Your Unit Owners Policy?

Your policy will cover items not covered by the association’s master policy. This might include improvements to the unit or the association deductible. Condo bylaws can vary greatly. It’s important to consult a Maine insurance agent who knows how to insure condominiums. They should understand your bylaws and your association’s insurance policy to help you buy proper coverage.

Many insurers issue condominium unit owners policies for rented condos. Others may use a Dwelling Fire insurance form, with customizing endorsements. As long as they are tailored to your situation, either should provide acceptable coverage.

Make sure that the owner of your condo unit is listed on your policy. If you set up a trust, LLC or other entity, if they’re not listed, they’re not covered. This is especially important in case of a liability claim involving your condo unit.

What’s Insured by Your Tenant’s Renters Insurance?

Your tenant’s renters insurance policy covers their “stuff”, such as furniture, clothing, and computers. Your policy will NOT pay for this damage. Neither will the association policy. Save yourself from conflict; require your tenants to buy renter’s insurance.

Questions About Condominium Insurance?

Insuring a Maine condominium can be complicated. Noyes Hall & Allen Insurance serves dozens of Southern Maine condominium associations from two-unit conversions to 100+ unit complexes. If you have questions about condo insurance, contact a Noyes Hall & Allen Insurance agent at 207-799-5541

Related Posts

Should a Portland Maine Landlord Require Renters Insurance?

Renting Your Home? Get Landord Insurance.

Attention Renters: $0.50 a Day Makes All the Difference

When an Employee Layoff Goes Bad

Posted on by admin

 

Bill runs a café on the West Side.  Since a nearby hi-tech facility had a major layoff, lunch business has dropped 25%. In fact, Bill had to let Willie, one of his waiters go last week. Now, Bill’s wife Elaine stands in the kitchen with a concerned expression on her face and an official-looking letter in her hand. Willie hired an attorney and filed a lawsuit alleging wrongful termination and discrimination.

Elaine calls the café’s insurance agent. Good news! Bill & Elaine followed their agent’s recommendation by adding Employment Practices Liability Insurance (EPLI) to their portfolio of coverage last year. When the agent explained that the average cost of defending a groundless lawsuit is $20,000, they knew they couldn’t afford the risk. Their agent explained that the insurance company would respond on their behalf, hire a lawyer if necessary, and pay any damages if they are found liable. Bill and Elaine just avoided a huge expense  one that could have forced them to close their business.

Are you smart, like Bill and Elaine? Has your insurance agent recommended EPLI coverage to you? If not, you might consider:

5 Myths About Employment Practices Lawsuits

1. Employee Lawsuits Are Rare

Employment related lawsuits happen more than you think. Six in ten employers in the U.S. have faced an employment-related lawsuit in the past 5 years.

2. Only Large Employers Get Sued For Employment Practices

Nationwide, more than 40% of employment-related practices claims are brought against employers with fewer than 100 employees.

3. Employee Lawsuits Don’t Happen in Maine

Think again. The Maine Human Rights Commission or Maine Workers’ Compensation Board handle more than 800 employment-related practices complaints every year.

4. It’s Covered by Liability or Workers’ Comp Insurance

Unless you have specifically purchased EPLI coverage, the costs of defense or damages are NOT covered by standard Workers Comp, General Liability or Professional Liability insurance policies.

5. EPLI Insurance is Expensive

Depending upon the type of business you operate, Maine Employment-Related Practices Insurance costs as little as $30 per employee per year – or $0.58 per weekly payroll period.

 

What does EPLI Cover?

  • Legal Representation to defend you against claims from current, former or prospective employees, including:
    • discrimination (age, sex, disability, race, religion, etc.)
    • wrongful termination
    • sexual harassment or hostile work environment
  • Damages you’re legally obligated to pay.
  • Court costs and related expenses.
  • Some policies also offer counsel with an employment law professional to help you during the hiring employment and termination process.

If you have employees, your business is at risk. For answers to your Maine employment liability insurance questions or Maine workers compensation insurance questions, call Noyes Hall & Allen at 207-799-5541.

 

Three Ways to Keep Epsilon Spammers from Phishing Your Money!

Posted on by admin

On March 30, Epsilon, one of the world’s largest email marketing companies, reported a breach of their system.  Epsilon sends more than 40 billion emails a year to consumers who register on one of their clients’ websites or who give their email addresses while shopping.

Have You Received an Email Like This One?

“Dear Valued Customer,
On March 30th, we were informed by Epsilon, a company we use to send emails to our customers, that files containing the email addresses of some [company name here] customers were accessed without authorization.”

Millions of people have. As of April 18, 2011, clients of more than 100 companies and brands have been hit, including big names like GlaxoSmithKline, Shell, Radio Shack, PacSun, Capital One, JPMorgan Chase, J. Jill, Sears, Crate & Barrel, Walgreens and Abercrombie & Fitch.

According to Epsilon, the breach was limited to email addresses or customer names only; they report that no other personal identifiable information was stolen. Despite that, many security experts are concerned about the implications.

Having even a person’s email address and their spending habits or favorite brands may make it easier to craft a sophisticated phishing attack. For example, you could get an email that appears to be from a company you know and trust, asking you to log in and provide  information that may seem harmless. This nefarious technique is called “spear-phishing”.

Prevent Phishing Attacks

1.  Stay on guard – especially now. Be extra careful about where you click and what information you enter on a website.

2.  Scrutinize emails from any company. Look for typos and strange URLs. Look at the email address of the sender. Don’t click on those links!

3.  Call the company in question if you get a suspicious email,. No company should be asking you for sensitive information by email.

If you have questions about identity theft in Maine, contact Noyes Hall & Allen, a Maine Trusted Choice independent insurance agent. If you’re looking for Maine data breach business insurance, our business insurance specialists can help.  Call us at 207-799-5541.

Thanks to Steve Anderson for sharing these tips, which we’re sharing with his permission.

Avoiding Commercial Building Roof Collapse: Removing Snow from a Roof

Posted on by admin

This week’s snow has accumulated on the roofs of Maine homes and commercial buildings, increasing the risk of collapse and ice dams. The snow has finally stopped in Portland, Maine – at least temporarily. It’s a good time to evaluate whether you need to remove snow from a roof.

High-Risk Areas – Heavy Snow Load Can Cause Roof Collapse

  • Large, flat roofs, or those with less than a 30º slope.
  • Heavily insulated roofs
  • Roofs with previous structural damage or stress.
  • Shaded areas, where snow can freeze into ice.

Evaluate Your Commercial Roof Before Snow Load is Critical

  • Create a plot plan to identify skylights, drains and scuppers, wiring and equipment.
  • Monitor rooftop conditions throughout the winter to identify ice buildup, blocked drains and snow drifts.
  • Use experienced, knowledgeable employees or (preferably) hire an outside contractor.
  • Hire only experienced contractors who can provide proof of business general liability insurance.

Warning Signs of Roof Collapse

  • Improper operation of doors or windows.
  • Deflection of ceiling finishes or exposed beams.
  • Roof leaks
  • Sprinklers moved from their normal positions
  • If you notice these, contact a structural engineer or your local building inspector.

How to Safely Remove Snow from a Roof

  • Do not remove snow all the way down to the roof membrane.
  • Use plastic shovels – never metal – on your roof.
  • Fill a plastic tarp with snow and release over the side of the building, carefully watching where snow is landing to avoid people and property.
  • If using a snow blower, adjust to prevent rotating components from contacting the roof surface.

Most Maine business property insurance policies cover roof collapse. Policies do not typically cover maintenance such as snow removal or other prudent loss prevention measures. If you have questions about commercial building insurance, contact the experienced Maine insurance agents at Noyes Hall & Allen Insurance at 207-799-5541.

We’re proud to be agents of Acadia Insurance, MMG Insurance and Hanover Insurance,  whose loss control tips which were used in this blog post.

Buying, Selling or Renting? Better Know About Maine’s New CO Detector Law

Posted on by admin

  Beginning November 1, 2009, a new Maine law requires smoke detectors and carbon monoxide detectors in every rental property, and in any residence purchased after that date.

 

As always, insurance companies will allow Homeowners insurance discounts for smoke detectors and other protective devices.

Detectors Required

    • Must be 120V with battery backup and powered by the building’s electrical system.
    • Plug in units are acceptable, as long as they have a battery backup.
    • Detectors must be in each unit, near bedrooms for apartments or rental homes – even seasonal or occasional rentals.
    • Must be photo-electric type if located within 20′ of a kitchen or bathroom.

 

Buying a Home?

Buyers (not sellers) must certify that these detectors are in the property in order to close on a purchase & sale agreement. The Maine Dept. of Public Safety is drafting a certification form which will be used for this purpose.

For more information:

 

Easy Money

Posted on by admin

Everyone’s looking to tighten up their budget these days. Many people prefer to  spread the cost of their insurance throughout the year by paying in monthly installments. But insurance companies charge an “installment charge” to cover the expense of sending those monthly bills, and to replace investment income they forgo by not collecting your premium up-front. The average “installment charge” is $5.00 per bill. That means if you pay your Maine auto insurance in monthly installments, you’re paying $50.00 or $60.00 extra a year.

Quick and Painless Savings

Instead of having the insurance company send you a bill, sign up for Electronic Funds Transfer (EFT) – automatic monthly withdrawal of your premium payments from your checking account. Most companies waive the installment charges completely for EFT customers. That saves you an extra $60.00, plus the cost of stamps, checks, and the time it takes to pay the bill.

Clients of our Maine insurance agency who are snowbirds or travel frequently love EFT. They don’t have to worry about bills being forwarded, or accumulating unpaid while they’re away.

One added benefit of EFT: no more risking cancellation notices by forgetting to pay your bill. Because your payments are automatically withdrawn, they arrive on time every month, without any action on your part.

For more information about insurance discounts, contact Noyes Hall & Allen Insurance at 207-799-5541.