Category Archives: Risk Management

Cyber Liability Insurance, HR Challenges

The SHIELD Act : How It Affects Your Business In New York

Due to the increasing concern about the security of personal information, many states feel the need to implement data and cybersecurity laws to protect private information utilized by these malicious hackers. On July 26th, the governor of New York signed the SHIELD Act to protect the state’s resident’s data and broaden New York’s security breach notification requirements. The SHIELD ACT or Stop Hacks and Improve Electronic Data Security Act requires in the state of New York that any person, business owner’s computerized data which includes the private information of a resident of New York (“Covered Business”) to not only implement but maintain reasonable safeguards to protect the confidentiality, security, and integrity of the private information but to have proper breach notification requirements.

Every NY business owner must comply with the SHIELD Act because “private information” includes a lot of sensitive data. It is imperative to understand what the definition of private information means as it includes, but is not limited to a username or email address in combination with a password, a name, phone number, driver’s license number, CC number, etc. This does NOT include publicly available information that is lawfully available. This act also expands the definition of Breach, as Breach now includes unauthorized access, rather than solely unauthorized acquisition.

To be compliant with the SHIELD Act’s data security requirements, a business must implement a data/cybersecurity program that has reasonable administration safeguards, reasonable technical safeguards, and reasonable physical safeguards. These reasonable safeguards must be appropriate and align with the size/complexity of a business. This act highlights the importance of HR professionals and in-house employment involvement in their organization’s information security. This act adds an important aspect that requires there to be breach notification requirements. 

For example, if an HR Professional accidentally emails private information to the wrong employee containing “private information” the employer must document this as inadvertent disclosure which won’t result in misuse and maintain this documentation for 5 years. If the information contained more than 500 New York residents the employer would have to submit documentation to the attorney general within 10 days. If you fail to comply and notify the attorney general, there are $20 fines per notification with a maximum penalty of $250,000 (Effective Oct. 23,2019.)

This is extremely important for employers to understand in order to comply with the law. The responsibility employers, HR professionals, and employees have regarding properly handling data can impact a business tremendously. The fines associated with mishandling data can lead to millions of $$$ in losses. Make sure you understand the laws, make sure you protect your data, and make sure if your company experiences a data breach you have proper risk management strategies in place to pay for the losses.

Download our SHIELD Act Guide Here

For More Information on the Shield Act and how your organization can be compliant, contact a Risk Advisor or call 914-357-8444

Employers Practice Liability Insurance, General Liability Insurance, Human Services Practice Group Content, Line of Insurance, Loss Control, Transportation Practice Group Content

Adult Day Care Considerations for Your Business

Running an adult daycare seems to be one of the harder gigs. Between keeping employees in check and fully trained and clients safe, it is a hard organization to manage. Our adult daycare inspection considerations list should help you keep insurance claims and deductions down. One less thing to worry about!

Insurance Considerations when Choosing which Adult Daycare Services to Provide

 

When running an adult daycare, you must understand that there are multiple types of insurance to cover you, your employees, your property, and your business. Some that you should consider when deciding on setting up your daycare center are:

  • Professional Liability – Covers your business from the negligence of employees and other defense/legal costs
  • General Liability – Liability for any incident that occurs within your business (slip & fall hazards or a loose handrail)
  • Auto Liability – For your workers who may transport clients/services to and from other locations
  • Abuse and Molestation Coverage – If the worker physically, sexually, mentally, or emotionally abuses a client

 

Adult Daycare: Safety Inspection Checklist 

Adult Daycares are meant to help adults who cannot supervise themselves during the day & may need help with basic care functions. This naturally means that these workers are constantly focusing on keeping patients/clients safe. Worker’s may overlook small issues, like a cracked sidewalk or an unsteady handrailing as their main focus is on the client, not their surroundings. A Supervisor should focus on making sure safety is a priority for employees & that the surrounding areas also well maintained & safe.

Here are just a few things you might want to keep constantly asking/monitoring:

  • Is the loading/unloading area clearly marked?
  • Are there any potholes in the parking lot?
  • Are there cracks in the pavement that needs to be repaired?
  • Do you have wheelchair-accessible ramps & handrails leading up to the main entrance clearly marked?
  • Are these ramps and handrails in good condition?
  • Are the emergency exits clearly marked and free of obstructions?

Safety Tips for Your Adult Daycare Center

 

While having a safety inspection checklist is definitely important, having certain safety parameters in play is just as necessary. This includes, but is not limited to:

  • Rigorous, continuous safety training – your employees are dealing with real-life adults that can be unable to perform simple functions without supervision. This means your employees need training to the max. Rigorous training with in-depth expert advice is important. What is also important is that this training never stops and is not just a 3-day course. It is a continuous learning process.
  • Safety Guideline/Handbook – Having a written word on the safety parameters and rules already gives the employees a better idea of how to handle their clients.
  • Mechanical Lifts & Safe Patient Handling
  • Handrails on stairways
  • Handicapped Bathrooms
  • Proper Lighting
  • Large, spacious areas
  • Medical supplies ready for immediate use

 

Adult Day Care Transportation Considerations 

When running an adult daycare, you need to think about how the adults in need of assistance will come to the daycare facility. If their caretakers at home do not have the time or resources to drive them there and back or make trips to various other locations to aid the adult, this is where your daycare service can flex its muscles. Having a transportation wing of your facility will make your daycare more profitable immediately. Offering the transportation of clients from home to daycare and back is the most important, but you can also offer trips to the grocery store, hospital, and sources of entertainment.

 

Before setting any of this up, you might want to think about the potential risks of implementing this transportation system. Who will be driving? Will they be using their own vehicle or a vehicle provided by your organization? Are they a good and safe driver? Do they need a specific type of license to drive an organization owned fleet vehicle? Will their actions cost me thousands of dollars? We suggest following these tips to make sure you have the necessary guidelines set to open up your transportation service.

 

Have a Motor Vehicle Record open for every single driver. Essentially, a MVR is a small summary of the driver’s previous record and any information pertaining to tickets they may have received. This report includes driver’s license info, date of birth, previous driving history, violations, etc.

 

Obtain comprehensive automobile insurance with medical, property, and liability damage included. That means if you/your driver is liable for an accident, you are protected and covered. If your car receives damages or is stolen (your property), you are covered. And if there is a medical injury due to a crash, you are also covered.

 

Contracting a professional driving company may be worthwhile for your company’s success. If you are unsure of your workers serving as part or full-time drivers, hiring professionals is worth it. They are experienced and bring less risk into the equation. Spending more on their services may cost you less in the long-run.

 

Conclusion

To conclude, running a daycare for adults is not easy. There are a lot of risks and potential costs to consider. But taking our adult daycare inspections tips into consideration will help your organization to succeed.

 

Still, need help? Still, have questions? Contact a risk advisor today at 914-357-8444. Or, visit our website here.

 

Cyber Liability Insurance, Loss Control, Risk Management

Capital One Data Breach: Assessment and Prevention

 Last year, after the Capital One Data breach, Capital One agreed to terms with US regulators to pay $80 million dollars in fines because of a data breach. The hacker accessed approximately 100 million credit card applications. Maintaining online security for a small or midsized business can be a hassle. There is a lot that goes into maintaining good security practices, and the truth is, it’s hard to keep up with all the new rules and regulations. The last thing you need while trying to grow your business is for someone to somehow steal your information. In the case of someone hacking into your business, YOU are responsible for the lost data.
The fines are to address the lack of security that allows a breach of this scale to happen. Also to address the issue of the bank not solving the problem on time. This gives the opportunity to steal and distribute credit card information, social security numbers, and the potential for large scale identity theft. Capital One claims to have tightened up its online security system. According to the OCC, the bank will take additional steps to show its computer system has bettered its security.

So what do I do as a business owner to protect myself from a data breach?

Purchase cyber liability insurance. If there is one thing that I have learned from my time working at a risk management firm, it’s that it’s better to be safe than sorry. US regulators have the ability to fine your business into the dirt after a single breach. It is a huge money saver in the long run to buy cyber liability insurance. One of the primary costs of data breaches is notifying affected users of a hacked online resource. The cost of maintaining a data breach notification system can be very high. It has only increased and only will increase since the escalation of hacking in recent years. Without cyber liability insurance, a company is liable for all of the costs associated with creating and maintaining a breach alert system.

 
Hacking is only becoming more prevalent in our society. Soon, cyber liability insurance will become a necessity, and most likely more expensive. Before we know it, all businesses carrying different varieties of data will be required to purchase cyber liability insurance. Don’t end up like Capital One, paying millions of dollars in fines because you skimped on your security system to “save money.” In the long run, the best way to protect your business and save money is to do right by your customers.
If you still have questions, you can contact a risk advisor today at 914-357-8444. Or, you can visit our website here.

 

Claims Management, Human Services Practice Group Content, Other, Workers Compensation Insurance

COVID-19 on NYS Workers Compensation

The COVID-19 outbreak has spread all throughout America, but most notably in New York. Considering America’s largest metropolitan hub is New York City, when the disease hit it was bound to be catastrophic. Due to the heavy outbreak in New York, Governor Cuomo ordered a stay-at-home rule for nearly three months. This resulted in higher unemployment and less in-person work happening.

Increase in COVID-19-Related Workers Comp Claims

What exactly does this mean for Workers Compensation claims? It depends on what types of workers comp claims. Considering health care workers and essential first responders are eligible for workers comp, the workers comp claims due to the contraction of coronavirus have been large in quantity and amounts paid out. Coronavirus claims have been costly for insurance carriers per claim for two reasons.

First, the medical bills related to treatment of the virus are hefty: 6 days of hospitalization can cost $40,000. Second, insurance carriers set a high standard for respiratory Workers Comp claims after the 9/11 attacks. Respiratory diseases lime coronavirus can have permanent or long-term impacts, meaning more money out of insurance carriers. And because the coronavirus is a temporary pandemic and is no fault of the employer, premiums can not necessarily increase, meaning greater losses for carriers due to the costly COVID-19 workers comp claims.

Decrease in Non-COVID-19 Related Workers Comp Claims

However, the COVID-19 impact on NYS workers comp does not end there. Because of the lock down, the number of non-COVID-19 workers comp claims has significantly shrunk these past 3 months. So, financially, while the COVID-19 claims are more expensive than regular workers comp claims, the number of COVID-19 claims is still not as large as the average amount of workers comp claims, meaning that both of these effects of the outbreak have offset each other financially.

The question is now whether insureds will protest that due to there being less workers on payroll and claims being filed, WC premiums should decrease, meaning insurance carriers charge less on premiums to pay out almost the same amount of money. It is important to know the outbreak is not over and these figures may change when the pandemic finishes. Keeping up to date with the official NYCIRB and NY officials is the best way to keep track of insurance on workers comp effects from the pandemic.

Still confused? Still have questions? Call a risk advisor today at 914-357-8444 or visit us here at our website.

Note

*All of these statistics and findings were found in a June 2020 report on COVID-19 and Workers Comp claims written by the NYCIRB. The link is mentioned in the article, and can be found here.

HR Challenges, Risk Management, Workers Compensation Insurance

Workplace Stress: Recognition and Management

According to the American Institute of Stress, 65% of workers said that workplace stress had affected their lives in one way or another. This number is not a surprise to many, but it should be. When comparing the stress level of work environments around the world, the U.S. takes the cake. U.S. workers have spent more hours on the job than the labor force of any other industrial nation. A 2001 survey concluded nearly 40% of workers described their office environment as “a real-life survivor program”(American Institute of Stress). As the workforce grows increasingly more competitive, and the job market tightens, many believe workplace stress to be on the rise.

Now, let’s compare the average American workweek to that of other industrialized countries. The average American works approximately 44 hours per week. Whereas in Japan and Italy, the largest number of hours an employee allowed to work in a week is 40 hours. And in the UK, Canada, Germany, and France, average work weeks are less than 4o hours.

Why is this information relevant? Because between 60% to 80% of workplace injuries are workplace stress-related. There are a multitude of factors that may contribute to workplace stress. These include understaffed departments, and poor management techniques. Regardless of what causes stress, all these contributors lead to decreased productivity. Whether you run a small business or a Fortune 500 company, decreases in productivity can be detrimental. Especially in the case of small businesses, which typically don’t have the cash reserves necessary to make up for the lost time.

Having management aware of the problem can go a long way in managing workplace stress, but it isn’t enough. Workplace stress affects everyone in the office, decreasing employee morale, and overall productivity. This lack of productivity can diminish the profits of the business, feeding into the flame of a stressful work environment.

 

 

Some Tips on Reducing the Stress Levels in Your Workplace:

1) Engage your frontline supervisors. They should be on the lookout for stressed out, anxiety-ridden employees. You don’t need to be Freud to recognize a stressed employee.

2) Have that front line supervisor engage in a one on one discussion. Oftentimes knowing that the employer recognizes a problem relieves stress. It may even motivate an employee to work through a tough time.

3) Check with HR or your Workers Comp Insurance Carrier, they may have counseling provisions within their policy. Their policy could allow several visits to a therapist to help relieve stress. Even if it’s personal and not work-related, check to see what your Workers Comp policy offers.

4) Rotate staffing, giving days off for completing “x” amount of days without an injury. Try to motivate focus and productivity. By giving your employees achievable goals, they can feel a sense of accomplishment.

Running an efficient and profitable small business is hard enough as it is. As a business owner, you must allocate resources to workplace stress. These dollars spent on increasing the coverage of your Workers Comp Insurance Carrier are far cheaper than if the worker hurts themselves or others because they are not focused on the work at hand.

If your business is suffering from production losses, take some of the steps above. Seek professional help if that still doesn’t work and if you have any further questions, contact Metropolitan Risk Advisory today!

Contact a Risk Advisor or call 914-357-8444 if you have further questions!

Claims Management, OSHA, Risk Management, Workers Compensation Insurance

Work Injuries – Main Types and Causes

Work injuries are all too common in the workplace. Just this year alone, workplace injuries will cost businesses over $59 billion, and that number continues to increase every year. Among the list of top workplace injuries, the “usual suspects” always rank near the top. These being accidents caused by falling, mishandling of objects, and auto incidents always rank near the top. Improper machine use, slip and trip, and awkward posture also cause thousands of injuries a year. The other injury type that has come on of late is overexertion. Overexertion injuries cost $1 billion every week in treatment alone, and ergonomics, the study of how to improve workplace efficiency, is dedicated to stopping these injuries.

Many define work injuries as specific physical damage to a worker while on-site or completing a task at work. This is an important definition as it can be very unclear whether a worker deserves workers comp. or not based on his injury.

While we list the top-10 types of work injuries, there is a root cause for all work accidents. The number one reason for work injuries is negligence from a worker or employer. Many injuries can be avoidable if the worker pays more attention to certain surroundings in the work environment. Or, if employers paid attention to their worksites and their worker’s health and safety. Another way injuries can be avoided is more employee training. With more safety training and knowledge on how to use machinery/handle objects, employees’ jobs are a whole lot safer. Employers should invest the money into this training. While it may not be a profitable payment, they save hundreds of thousands on fewer workers comp claims and lower insurance premiums. Additionally, employees have more job training and can work more efficiently with greater output. This is an obvious win-win.

View our Work Injury Infographic

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For more information, contact a Risk Advisor at 914-357-8444.

Claims Management, Cyber Liability Insurance, Loss Control, Risk Management

Cognizant Gets $400 Million Payout After Cyber Attacks

Technology consultant firm Cognizant fell victim to cyber-attacks caused by a ransomware attack last April. The hack disrupted thousands of employees from accessing networks from their home during quarantine. Clients also disallowed Cognizant to use their networks in case of further breach, causing major revenue and clientele loss.

Cognizant losses total $50-$70 million in lost sales, higher premiums, and defense/legal costs. Without cyber insurance however, the losses would be catastrophic.

Cognizant had out extensive money into cyber insurance premiums with multiple carriers. Insurance insider reports this investment turned out to be a good decision as they earned $400 million in cash reserves from their carriers, another huge loss for carriers in the cyber market. Carriers have been hard with higher loss ratios and claims frequency in the cyber market recently.

What is the overarching message? Right now, allocating resources towards cyber protection is no longer recommended but required. Cyber insurance of some form is necessary to protect against ransomware attacks and saving your company millions. However, insurance is not the only resource that needs investment. There is no way to fully protect yourself against cyber attacks with just insurance. We recommend proper employee training, duel-factor password authentication, and data encryption software.

Stay ahead of the curve and protect your company’s invaluable data. Invest properly and do not be afraid to spend a little extra for full protection. The premiums upfront may prove cheaper in the long run.

Still have questions? Contact a risk advisor today at 914-357-8444 or visit our website here.

Claims Management, Construction Practice Group Content, Risk Management, Workers Compensation Insurance

National Safety Stand-Down Week Announced ( With INFOGRAPHIC)

OSHA recently announced that the National Safety Stand-Down Week will take place September 14-18, 2020. This week is to recognize fall dangers, and, in general, work-site safety. Fall-related injuries continue to be the number one leader in deaths and injuries in the construction industry. Over ⅓ of workplace deaths in construction were due to falls in 2018. Here are a few ways to “celebrate” the tradition.

If you’d still like more information on job site safety or need help with risk management, contact one of our Risk Advisors today or call 914-357-8444.

Claims Management, Employers Practice Liability Insurance, HR Challenges, Risk Management, Workers Compensation Insurance

Heat Injury and Illness in the Workplace

An Under looked problem

Heat injury and illness is a serious work-related danger that affects millions of American workers each year. Not only do heat injuries directly cause injuries/illness, but at times they are the underlying reason for mishandling of equipment, and lack of focus that leads to other work-related injuries. While federal agencies such as OSHA publish articles on measures to prevent heat-related injuries/illness, at times these cautions do little. It is on the management to provide resources, knowledge, and safety measures for workers in constant risk of heat injuries and illness. Here are some ways to prevent heat injuries and illness.

How to Avoid Heat Injury and Illness

Provide Rest Breaks:

Management should provide several work breaks other than lunch every day. These breaks should include free water and a shaded location. This well help workers stay out of the heat, cool down body temperature, and replenish fluids.

Provide Information:

Your workers need to understand the dangers of working in constant heat. Manual labor in heat will cause a slower release of body heat and less sweat. This traps more heat in the body, raising the body temperature. This is a dangerous result, as 2 degrees fahrenheit higher than normal body temperature can cause dizziness, lack of focus, and dehydration. Once you hit 5 degrees past normal body temperature you are flirting with possible fatal illnesses. The more your workers know, the safer your workers will work under intense heat.

Training:

Training workers on how to avoid what prevention is nearly impossibly. However, training project supervisors on proper safety plans and measures is beneficial to all. Having set heat prevention measures in place for your supervisors to execute can save you money in claims and injuries.

Sometimes, these precautions still are not enough. Workers may still suffer from the effects of high heat and humidity. Here are a few steps to deal with a worker with a heat injury or illness.

How to Treat Heat Injury and Illness

Immediately Bring the Worker to Shade:

Give the worker tons of water to hydrate them. Ice packs to cool down their body temperature is also recommended. The best spot to cool down a worker is the back of the neck, as it helps control your entire body’s temperature.

Bring the Worker Medical Assistance:

If their symptoms continue to worsen or remain stagnant, calling an ambulance is the best option. Make sure to call the ambulance within the hour the worker first felt symptoms.

Loosen Clothing:

Loosening the worker’s clothing can help free entrapped heat between the skin and clothing. This will help cool the workers’ internal body temperature. It will also help with quicker blood flow, which will help the worker recover quicker.

Heat injuries and illnesses are not small cast-offs when talking about workers’ injuries and workers comp. These are critical parts of worker safety and health, especially in construction and work done primarily outside. Hopefully, this article will help bring important information to project supervisors and management about proper steps and safety precautions regarding heat injuries and illnesses.

Still confused and want advice? Call a risk advisor today at 914-357-8444 or visit our website here for more information.