California Archives - Competitive Edge Insurance

6 Current Cyber Threats Companies Face: How to Stay Safe

As companies adopt digital solutions, they are exposing themselves to risks that can compromise their operations and sensitive data. Preventing these threats is essential and understanding them is the first step to keeping your company safe. In this article, we’ll discuss 6 of the most common cyber threats that companies face today and provide simple and effective strategies to keep them secure.

1. Lack of security awareness

Employees and stakeholders may not recognize potential threats, making them susceptible to phishing attacks or inadvertently sharing sensitive information.

Solution: Develop a culture of security awareness

It is essential to establish and communicate clear security policies, ensuring that employees are well-informed through regular training sessions. Simulating phishing attacks helps test and improve employee vigilance, while encouraging a culture of reporting ensures timely responses to potential threats. Staying informed about the evolving threat landscape and adapting training materials accordingly ensures that the office remains proactive in addressing emerging risks. Through these measures, a comprehensive security culture can be cultivated, providing a collective defense against cyber threats.

2. Outdated software

Running outdated software exposes the company to vulnerabilities that could be exploited by cybercriminals, leading to data breaches or system compromises.

Solution: Keep your computer’s software up to date

Keeping your computer’s software up to date is essential for staying safe in the digital world. Cyber-attacks and ransomware have become more sophisticated in recent years, meaning that outdated software is much more vulnerable to malicious threats. Updating your software regularly provides your device with the best defenses against hackers and other online criminals. Not only will you stay protected against attack, but new updates often include improvements to processing speed, additional functions or bug fixes, allowing you to enjoy a faster, smoother experience on all of your favorite program.

3. Lack of security program

Without a tailored security system, companies may lack the necessary safeguards to detect, prevent, and respond to cyber threats effectively.

Solution: Install a reputable security program on your computers

If you use your computer for any purpose, it’s important to have a good security program installed. Criminals are more and more technologically advanced, so you need a reliable program that can protect against the latest threats. It’s worth taking the time to research different options, as some may offer more protection than others. Investing in a reputable security program not only safeguards your valuable data but also gives you peace of mind knowing that you’re protected from malicious hackers and viruses. Make sure to set up timely automatic scans and frequently updated virus-definition files to stay one step ahead of any attempted cyberattack.

4. Use the same old weak password everywhere

Reusing weak passwords across multiple accounts increases the risk of unauthorized access, as a breach in one account could potentially compromise all others.

Solution: Use strong, new and different passwords everywhere

It’s no secret that you should always use strong passwords for email and other account logins. Not only can weak passwords be easily hacked, but reusing the same password across multiple accounts increases your vulnerability to hackers. Your email account might not contain sensitive information (or it may!), but someone could use your email address to gain access to other important accounts with potentially devastating results. Even better than a strong password? A two-step authentication process with a password authenticator — this way, even if someone gets past your password, they still won’t be able to get into your accounts. So take the time to protect yourself and develop an impenetrable defense against cyber intruders.

5. You don’t have a cyber policy

In the absence of a dedicated cyber insurance policy, companies may find themselves financially exposed to the costs associated with data breaches, legal liabilities, and other cyber-related incidents.

Solution: Invest in Cybersecurity Insurance

Investing in cybersecurity insurance is an important step for any company owner. With the evolution of technology, data has become increasingly vulnerable to cyber-attacks, making insurance more and more essential for both small and large companies. There are various types of coverage available that can provide assistance when it comes to reviewing and examining existing security structures as well as responding to any incidents involving data breaches or malware attacks. Having insurance in place will ensure you have the necessary protocols and safeguard your information from digital intruders.

6. Irregular data back up

Failure to regularly back up data leaves the company vulnerable to data loss in the event of a ransomware attack or other catastrophic events, impacting organizations’ continuity and recovery efforts.

Solution: Back up your data regularly

We’ve all seen the headlines after natural disasters where thousands of people have lost years’ worth of precious data in an instant. Don’t let yourself be one of them! With ever-increasing tech storage and transfer speed, backing up your important family photos, documents, videos, or anything else you don’t want to lose is easier than ever. Take five minutes a month or so to plug in an external hard drive, pop in a USB stick, or click on the button to save your work to cloud storage, and you’re good to go. Trust us – you’ll thank yourself if disaster strikes!

By fostering a security-conscious culture and adopting practical measures, you’re not just securing data; you’re securing your peace of mind. By keeping your software up to date, using strong passwords, and investing in cybersecurity insurance, you can minimize the risk of becoming a victim of cybercrime. Don’t wait until it’s too late – take action now to protect yourself and your company. For more information about cybersecurity insurance, contact us today.

We can help you find the best policy to provide the coverage you’ll need to bounce back if attacked.

Understanding the Hard Insurance Market and Its Impact on You

in California, General Business Insurance, High-Risk Insurance, News

The insurance landscape in California is undergoing a significant shift, with major carriers reducing their presence in the state’s market. This development has led to the emergence of a “hard market,” characterized by rising rates and limited coverage options. In this blog, we aim to shed light on what a hard market means for consumers and why it’s a cause for concern.

A hard market refers to a period in the insurance industry where rates increase, coverage becomes more limited, and insurers become more cautious about taking on risks. This tightening of conditions stems from various factors, including rising construction costs, catastrophic events like wildfires, and regulatory constraints.

As insurance carriers withdraw or reduce their presence in California, consumers are left with fewer options to choose from when it comes to securing coverage, which leads to higher prices and potential gaps in insurance protection.

In fact, one of our clients, a construction contractor, recently received a notice from their insurance carrier. They were informed that their carrier would be discontinuing coverage for their warehouse location in Riverside. With a notice period of just 90 days, the contractor was faced with the challenge of finding alternative insurance options within a limited timeframe. This example highlights the difficulties companies encounter in obtaining affordable insurance and the impact it has on their operations and overall costs.

Homeowners are also affected by the hard market, as limited coverage options and rising premiums make it more challenging to find affordable and comprehensive homeowners insurance. This can lead to financial hardship and potential gaps in coverage, leaving homeowners exposed to significant risks.

The emergence of a hard insurance market in California brings forth challenges for consumers, including higher premiums, limited coverage options, and potential gaps in insurance protection. It is essential to be aware of these market dynamics to make informed decisions and explore alternative options to secure the necessary coverage.

Working with insurance professionals who understand the complexities of the current market can help navigate the challenges and find the best available solutions.

How to Protect Your Business From a Fire

in California, General Business Insurance, News

As a business owner, there are many things to keep track of: revenue, expenses, profit, client information, the list goes on. We’re guessing, however, that protecting your business from fire isn’t at the top of your list. We’re here to get you thinking about how to protect your business from fire.

Tips on Protecting Your Business from a Fire

Fire season is right around the corner. So, what can you do to protect your business? At Competitive Edge Insurance, we have a few strategies in mind.

Have an Active Fire Protection Plan

Ensure your business has an active fire protection plan in place. An active fire protection plan includes water spray systems, deluge systems, sprinkler systems, fire water monitors, etc. Make sure that all of these systems are tested and in good working order (functioning with fresh batteries, etc.)

An evacuation plan should be crafted and distributed to all employees. Perform practice drills with your team members to ensure everyone understands their role in the event of an emergency.

Spring Cleaning

Spring cleaning is important! When it comes to fire protection, this might look like:

Carefully storing combustible and flammable materials
Cleaning the perimeter of your building (i.e. eliminating dry brush and quick-burning foliage)

Read more in this article from VFS Fire & Security Services for everything you need to know on prepping the outside of your commercial building for summer.

Perform Routine Building Maintenance

The last thing you need during an evacuation is a blocked walkway or doorway. Ensure all fire lanes are clear and access to fire hydrants is unobstructed.

Moreover, the address of your building should be visible from the street in the event that emergency personnel are called onto the scene.

Invest in Fire Insurance

Fire insurance is defined as “a form of property insurance that covers damage and losses caused by fire.” Although most homeowners’ policies include some amount of fire protection, additional coverage is often considered in the event that property is lost or damaged due to fire.

What Could Your Business Face Without Fire Insurance?

The consequences of not having fire insurance can be detrimental considering your business is likely one of your largest assets.

Fire insurance can be essential depending on where you live. For example, in California, we’ve seen an uptick in wildfires in recent years, according to the California Air Resources Board. In fact, the area burned by California wildfires has been increasing each year since 1950. Eight of the state’s historical 20 largest wildfires have occurred since 2017.

Fire insurance can help minimize the financial burden in the event that a fire at your business does occur. For more information on how to insure your property, contact our team of experts at Competitive Edge Insurance. Until then, read up on risk mitigation for property investors.

Hiring in California: How to Reduce Your Risk

in California, General Business Insurance, News

Hiring new employers can be risky for company culture and the bottom line.

Since new employees are hard to come by, sometimes the decision to hire is rushed and there can be increased risks involved with the hiring process.

Even Brenda Jo Robyn, founder of Competitive Edge Insurance, screens employees pre-hire on Motor Vehicle Records (MVRs). This checks if they have a clean record and can they legally drive for your company, which ultimately will help with company rates.

Screening Employees

Who you work with matters.

On one hand, creating a positive company culture will benefit your employees and overall employee retention, which reduces financial and social risk. One way to create this company culture concerns how you screen potential employees in order to avoid a toxic environment.

A DMV screen costs 60 dollars and has proved to be worth the extra step. This DMV screen includes a general background check and driver’s license check.

It’s important to require DMV screens every year. This can save your company a lot of time and money in the long run by retaining the right employees.

Lastly, if your employee is driving on company time, it is important to make sure that the employee has their own car insurance.

Intellectual Property

In California, your client list can be considered intellectual property. In each employee offer letter, however, it’s crucial to have a separate section outlining that all clients will stay connected with the company if they were to leave.

If you have failed to do so already, you might consider reaching out to current employees and stating the new company policy.

Physical Space

The separation of class (for example, warehouse space vs. office space) for employees might take a couple of extra steps as a business owner but will reduce risk when hiring new employees. The separation between the physical warehouse and office space is the main separation to be considered as a business owner.

There are regulations for how the space is separated. For example, for some, areas being separated by chain link is considered acceptable.

Invest in EPLI

The Employer’s Professional Liability, also known as EPLI, causes different claims to arise from employees. There are a few ways to protect your business from a flood of EPLI claims. Employee lawsuits are rising and in return, settlements are becoming even more expensive. Although there are different types of insurance, workers’ compensation and EPLI are both ways to reduce risk with employee benefit plans.

EPLI is crucial to invest in as a company if it comes to a disgruntled employee—even if you are a small business. In the chance that your company gets sued, your EPLI insurance will cover it.

High-Risk Coverage

High-risk insurance addresses companies whose coverage was either terminated because of a claim, those who are new and cannot get coverage because of industry risk, or those who have experienced drops in revenue or industry disruption such that carriers are broadly refusing coverage.

You might be wondering, what risk class am I in? Luckily, there are various ways to determine this subgroup:

“An insurance risk class is a way for insurers to underwrite policies based on one’s belonging to a particular risk group.

People in each risk group will generally share similar characteristics that help insurers better estimate the chances that the policyholder will file a claim

Riskier risk groups will pay higher premiums—for example, people who are sick, older, or have a poor driving record.”

As a business owner, it is important to put the gates, systems, and processes in place to protect yourself, and Competitive Edge is here to help!

We follow the practices we write about because we believe in the importance of preventative risk. For those who are interested in reading more about what classifies as high risk, read on.

Commercial Real Estate and the Pandemic

in California, News

Consider new ways to serve your clients. Aid clients in developing their return to work programs. As tenants continue to understand how they will take their next steps, they may be looking to upgrade to more space. Consider how you can help each of your tenants to achieve their long-term goals.