Workers’ Compensation Rates are Rising: What Can You Do?

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As many business owners may have noticed, workers’ compensation rates are rising. What does this mean? Why is this happening? And most importantly, what can you do as a business owner in response?

Read on to find out.

Why Workers’ Compensation?

If you’re a business owner or an individual who is planning on employing workers when starting a new business, California state law requires you to invest in workers’ compensation insurance.

Why? Employers purchase workers’ compensation insurance to cover the medical costs and lost wages for work-related injuries and illnesses of employees. In turn, workers’ compensation protects your company against employee lawsuits.

Worker’s compensation coverage can help pay for:

  • Immediate medical costs (i.e. emergency room expenses)
  • Ongoing medical costs (i.e. physical therapy)
  • Partial lost wages while the employee is unable to work

Lack of proper coverage can result in fines and even criminal exposure.

Workers’ Compensation Rates Are Rising

Over the past couple of years, workers’ compensation rates have been steadily increasing across the board. They’ve been rising by 7% on average; however, this figure depends on each industry.

Moreover, in July 2022, the Workers’ Compensation Insurance Rating Bureau of California® (WCIRB) submitted its September 1, 2022, pure premium rate filing to the California Department of Insurance (CDI).

The CDI regulates California workers’ compensation rates with the help of the WCIRB, who makes recommendations based on the state’s loss ratio.

In this July 2022 filing, the WCIRB proposed a set of increased premium rates. On average, these rates are 7.6% higher than those approved the year prior on September 1, 2021.

According to the WCIRB, the average of the proposed September 1, 2022, advisory pure premium rates is $1.56 per $100 of payroll.

Read on for the WCIRB filing.

Why Are Workers’ Compensation Rates Rising?

So, why have these premiums been increasing in the first place?

The bottom line is that workers’ compensation rates are rising because there are simply more workers’ comp claims being filed.

Research shows there are many reasons why claims might be increasing, including:

  • Medical inflation
  • Workforce changes
  • The increasing average age of the workforce
  • Increased indemnity costs, and
  • Rising wages

Moreover, as individuals have begun to return to work in person, the number of claims regarding health and safety in the workplace has increased as well. These claims typically include:

  1. Employee concerns about exposure to COVID-19 due to unsafe working conditions, or
  2. Situations where employees allege they were wrongfully denied a request for workplace accommodation or leave

What Can Business Owners Do?

With this rise in claims, what can you do to protect yourself as a business owner? You can prevent workers’ comp claims by:

  • Prioritizing risk mitigation
  • Maintaining a safe workplace
  • Supporting mental health awareness to reduce burnout
  • Emphasizing  proper employee training
  • Developing and distributing an employee handbook and code of ethics policy
  • Implementing a handbook auditing procedure

While this list only showcases a few of many ways to avoid high workers’ compensation premiums, it’s important to remember that it’s up to all employers collectively to keep their employees safe—thus, lowering the number of claims being filed annually.

How Much Risk Does Your Business Hold?

If writing your hefty workers’ compensation check has begun to pain you, at Competitive Edge Insurance, we challenge you to ask yourself a question: “Am I, as a business owner, doing everything in my power to create the safest workplace possible?”

If the answer is no (which it typically is), get in touch with our team today to learn what else you can do.

Learn more about 2022 workers’ compensation changes by reading our article “Insurance Trends in 2022: What to Watch For.”

Why an Advisor Should Work with an Insurance Broker

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Wealth advisors who seek the support of an insurance broker not only set themselves up for success but most importantly, they also do so for their clients looking to purchase real estate.

An insurance broker provides a wealth of knowledge to help understand what potential liabilities ensue from the real estate purchase, as well as mitigate risk. 

This partnership will help you as an advisor, guide your client to make the best financial decision as well as plan for the future with the guidance of an insurance broker. Let’s dive into why an advisor should work with an insurance broker.

Infographic of Why an Advisor Should Work with an Insurance Broker

Types of Insurance Needed

The right insurance to cover your client’s upcoming real estate purchase depends on a variety of factors.

  • What kind of real estate is your client purchasing?
  • Where is the real estate located?
  • What is the size of the real estate?
  • What is the purpose of the purchase (personal or for business)?
  • Is the real estate located in a climate that requires additional coverage (i.e. fire zone, earthquake zone, etc.). 
  • And more

All of these answers will help advisors understand potential additional costs that may go towards insurance coverage (or even potential damage should an unforeseen issue arise). 

The different types of insurance policies your client may need for their real estate purchase include: 

  • Homeowner’s insurance 
  • Fire insurance 
  • Flood insurance 
  • Earthquake insurance 
  • The list goes on

The Benefits of Working With an Insurance Broker 

An insurance broker can assess the real estate property to see what potential risks the property has. If the piece of real estate is located in a fire zone, the insurance broker can identify what coverage would look like.

Essentially, working with an insurance broker helps list out all of the different insurance possibilities your client needs. Basic homeowners insurance or umbrella insurance may come with exclusions for coverage for fires, floods, etc.

Knowing what additional policies may arise allows you to sit with your client and discuss their financial strategy to help them maintain their goals.

Once you have the full picture from the insurance broker you’ve partnered with, you can then budget appropriately. You then have all of the materials necessary to make sure you can give a holistic overview to your client and tell them, “this is a financially smart decision” or, “let’s find a different route for you.” 

The main benefits of working with an insurance broker can be boiled down to these three factors:

  1. You help your client mitigate risk
  2. You save your client money both short term and in the long run 
  3. Your client will have better knowledge of the real estate investment they are making 
  4. As a broker, you will then understand where you can save your clients money and where they may have to invest more

Read on for more information on risk mitigation.

The Coverage Pitfalls of Insurtech

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With the rise of technology comes the rise of a new sector disrupting the insurance industry: Enter insurtech.

But what is insurtech, and what are its coverage pitfalls? Here, we have Brenda Jo Robyn, founder of Competitive Edge Insurance, on video to discuss the coverage pitfalls of insurtech.

What is Insurtech?

First, what is insurtech? Insurtech is a combination of the words “insurance” and “technology,” and refers to “technological innovations that are created and implemented to improve the efficiency of the insurance industry,” according to TIBCO.

Research shows that the insurtech industry is expected to reach a market size of $114 billion by 2030. This doesn’t come as a surprise considering that this tech helps large insurance companies explore new insurance options without the need for human efforts. Using information gathered from observed behavior, TIBCO says this could include:

  • “Dynamically-priced insurance policies
  • Small business insurance, and
  • Social insurance options

Insurtech also provides insurance companies access to data streams from IoT devices.”

An internet of things (IoT) device is a physical object “with sensors, processing ability, software, and other technologies that connect and exchange data with other devices and systems over the Internet or other communications networks.” 

Read on for more information on IoT devices.

The Pitfalls of Insurtech

Insurtech’s technological innovations can scour the internet, pulling information from a host of websites to make an informed insurance assessment.

While technology can sometimes work smarter than traditional insurance methods of insuring a business, insurtech also has its pitfalls.

Insurtech and Underinsurance

When it comes to evaluating and preparing property insurance, insurtech might be able to provide you with information including:

  • When the building was constructed
  • Permitting information
  • When there were last upgrades or renovations completed

Insurtech, however, cannot give you the details of what is inside a specific building. It will not be able to tell you information regarding:

  • The tenancy inside a building
  • Rooms of high value inside of a building that might require additional coverage (i.e. computer rooms)

So, because of this lack of information, you have a lot of very underinsured individuals when it comes to using insurtech.

Insurtech and Human Touch

As it’s been made clear, you do not receive the same human touch when you opt for insurtech.

At Competitive Edge Insurance, we believe it is helpful to have a professional as your advocate to take a look and give you options—not a technological innovation!

The most important thing that you receive with that human connection, according to Brenda Jo, is that this professional can share that an individual has options.

They can:

  • Cover their property at certain limitations, or
  • Decide to self-insure

A traditional insurance professional can help determine what self-insurance might look like. For example, what will they be insuring? Is the self-insuring simply increasing the deductible or not having that type of coverage altogether?

Our team at Competitive Edge can help take a look at your unique circumstances to help determine your areas of risk, where you’re covered, where you’re underinsured, and how to amend these pitfalls.

Interested in learning more? Read on in our article “How Does a Building Owner Know if They Are Underinsured?”

Understanding D&O Insurance: What You Need to Know

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While the term ” D&O insurance” may seem like just another one of the many acronyms floating around the insurance world, this form of liability insurance is essential in protecting corporate directors and officers. 

Let’s chat about directors and officers liability insurance, also known as D&O insurance. We’ll break down what it covers, who needs it, and why all corporate directors and officers should be familiar with this little acronym.

What is D&O Insurance?

Directors and Officers (D&O) liability insurance is insurance coverage that helps protect “the personal assets of corporate directors and officers, and their spouses, in the event they are personally sued… for actual or alleged wrongful acts in managing a company.”

The parties suing a director and/or officer could include:

  • Employees
  • Vendors
  • Competitors
  • Investors
  • Customers, or
  • Other parties

What Does D&O Insurance Cover?

Typically, D&O insurance helps not only protect your business but also helps pay for lawsuit-associated losses (i.e. legal fees, settlements, etc.) when the insured is found liable.

There are, however, three types of insuring agreements—titled Side A, Side B, and Side C—in a typical D&O policy. Read on for more on the different types of directors and officers liability insurance.

What Does D&O Insurance Not Cover?

While “breaches of fiduciary duty, failure to comply with regulations, lack of corporate governance, creditor claims, and reporting errors” are typically covered by D&O insurance, according to Investopedia, D&O insurance does NOT cover the following:

  • Outright fraud
  • Illegal profits
  • Criminal activity, and
  • Lawsuits between managers within the same company

Who Needs D&O Insurance?

So, when do D&O claims pop up? Most often, directors are officers are sued for:

  • “Breach of fiduciary duty resulting in financial losses or bankruptcy
  • Misrepresentation of company assets
  • Misuse of company funds
  • Fraud
  • Failure to comply with workplace laws
  • Theft of intellectual property and poaching of competitor’s customers
  • Lack of corporate governance”

This considered, you might be wondering: “Does my business need D&O insurance coverage?” The answer might be yes—depending on the size and nature of your business.

Any business that has a board of directors or similar corporate or advisory committee—whether you’re private, public, or even a nonprofit—should consider investing in D&O insurance.

Why? Claims against businesses and their directors are increasing. Plus, if you work with vendors or government entities or even just have employees or customers, you are prone to exposure that could make your organization vulnerable to costly D&O claims.

Interested in learning more about what insurance you need as a business owner? Read on in “how does a building owner know if they are underinsured?”

Why You Need to Audit Your Commercial Property Insurance

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Commercial property insurance is a necessity for commercial buildings and business owners. Why? Commercial property insurance helps protect a business’s physical assets from unforeseen events. Some examples of these events include:

  • Fire
  • Explosions
  • Theft
  • Vandalism
  • Storms

According to Nationwide, additional coverage is often also available for floods, earthquakes, equipment breakdown, and other causes of loss to your business.

Here, we have Brenda Jo Robyn, founder of Competitive Edge Insurance, sharing a story of a client who did not have the proper commercial property insurance, and why you need to audit your commercial property insurance to avoid a similar experience.

What Can Happen if I Don’t Have Adequate Commercial Property Insurance?

“We had a client who had a sewer backup in a four-story concrete building. On the second floor, the bathrooms backed up, causing severe flooding into the first floor—which happened to be a restaurant.

This flooding damaged all of the restaurant equipment. The claim ended up being just under $400,000.”

The worst part?

They didn’t have the necessary coverage. This particular client, in fact, only had about $50,000 worth of sewer backup coverage.

Auditing Your Commercial Property Insurance

This example considered, it’s extremely important to periodically audit your commercial property insurance.

This particular example actually encouraged our team to take a look at additional insurance areas that might be lacking. It became an opportunity.

For example, this same client had executive suites full of costly desks and computers—but no business personal property.

Hypothetically, if the sewer backup had flooded onto that executive suite floor, what would have happened? Remember, insurance audits are all about thinking ahead and considering the ‘what ifs?’ 

“So, our team at Competitive Edge went around and took a look at everything. We looked at the HVAC system; the client didn’t have enough insurance for that system to be replaced if something happened. Moreover, this client provided computer services to its clients and had server rooms next to the elevators. These rooms also weren’t covered.

During our insurance audit, we went in and did a full assessment of both:

  • The structure of the building
  • What was inside the building and what the client was responsible for

Interested in learning more about commercial property insurance? Read on in our article “Property Owners: What Commercial Insurance Do You Need?” for five types to consider.

Insurance Requirements for Business Owners

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When it comes to protecting your business, insurance can get tricky. What policies do you need? How can you ensure you’re meeting insurance requirements given by a city, state, or government?

Don’t worry—Here we have Brenda Jo Robyn, Founder of Competitive Edge Insurance, on camera to discuss standard insurance requirements for business owners. Let’s dive in!

Why Do Business Owners Need to Comply with Insurance Requirements?

Business owners are required to have certain insurance.

Most cities, states, and governments fall into the category of asking for insurance requirements, including the SBA and the requirements they have for their EIDL loans that companies have taken out due to COVID or other disasters.

Vendors and service providers follow suit in asking for insurance requirements.

Lastly, as you might imagine, landlords frequently ask for different insurance requirements in their contracts. Anytime real property is part of a professional relationship, these requirements ensue.

What Policies Are Typically Required in Contracts?

Below is a general list of four policies you might see in a contract in terms of insurance requirements.

General Liability

The number one policy that’s required is general liability.

This type of insurance policy protects a third party in the event that there’s a bodily injury or property damage claim to your products or services that you provide for them.

General liability, for example, would also include this scenario: Let’s say you have someone come into your office (you’re either renting a space or the whole building). Then, this someone trips on your carpet and falls as they’re coming in. 

General liability would be the number one policy to make sure that you have your requirements buttoned up.

Property Insurance

The next policy would be property insurance. If someone is renting their property to you, they want to ensure that it’s covered in case of a loss.

If you’re a restaurant, for example, you could imagine you’re in someone else’s building. You need to make sure not only that you have the safety elements in place (i.e. fire suppression) but also insurance for the owner of the building, should something happen.

Professional Errors and Omissions (E&O) Insurance

Professional errors and omission (E&O) insurance come into play when there’s a failure in services or technology that you might be providing. The policy will provide the company with a way to make the client whole after an error that results from this mishap or financial loss occurs.

Directors and Officers (D&O) Liability Insurance

Directors and officers (D&O) liability insurance might come into play for a business owner as well.

This type of policy is typically required by investors before they fund, and before becoming a board member. Remember, when you’re working with investors and funding, there’s a contract involved—so you’ll probably see this there.

How to Manage Your Risk as a Business Owner

So, now what do you do? Here comes the risk mitigation part.

A lot of times, you will see that most contracts ask for reasonable requirements—and it only makes sense they should have these protections in place.

We recommend, however, that you keep your eye out for these elements in order to best manage risk.

Outlandish Requirements

There are times, however, that you see outlandish requirements. Brenda Jo reminds us that these need to come up as a big red flag for you. An example of an outlandish requirement would be an unusually high minimum occurrence or aggregate limits or policies that are unrelated to the scope of the contract.

Broad Language in Indemnity Agreements

Look at broad language within the indemnity agreement that works in their favor, and not in yours. Moreover, there is such a thing as being too broad.

Remember, indemnity agreement language should always be reviewed by your attorney.

Unreasonable Required Coverage

This is a big one!

If you’re the party in the contract that the insurance requirements are being imposed upon—in construction, typically the contractor or subcontractor—it’s important to confirm that the required coverage terms are either included in your current insurance program or can be purchased at a reasonable price.

Ideally, you’ve had your broker review the contract before you sign it so that they can let you know what might be remiss in the requirements that are being put in front of you, and what you might need to purchase.

Then, is the purchase of new insurance more than what would be justified for this amount of a contract? For instance, if your contract is $25,000, and you’re required to purchase additional insurance for $5,000, does that make sense? Is this something that you can write out of the contract? Or, do you need to rework your bid?

Then, what level of insurance is necessary for each of the different policies? Do the policies make sense regarding the contract or the scope of work? For any new requirements or endorsements that need to be added, are they reasonable, and are they reasonably priced?

Interested in learning more? Read on to learn about complying with insurance requirements for construction, manufacturing, and tech start-ups.

Property Owners: What Commercial Insurance Do You Need?

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As a commercial property owner, do you know what types of commercial insurance you need to keep yourself and your building protected? Let’s discuss the five types of coverage you should consider.

Five Types of Commercial Insurance Property Owners Need

At the minimum, there are five types of commercial insurance a property owner should be carrying. 

Property Insurance

This one most likely came up as a no-brainer.

Commercial property insurance, according to Nationwide, protects “physical assets [i.e. building, equipment, tools, inventory, personal property, furniture] from fire, explosions, burst pipes, storms, theft, and vandalism.”

It’s good to note that natural disasters like earthquakes and floods aren’t typically included in commercial property insurance policies; however, they can be added to a policy.

So, how much will property insurance cost you? It depends. Some factors that might contribute to the premium you pay include:

  • Location
  • Building materials used to construct your property
  • Industry
  • Your building’s level of theft and fire protection

Liability Insurance

As a property owner, you also need liability insurance. This type of coverage protects against “claims resulting from injuries and damage to people and/or property [and] covers legal costs and payouts for which the insured party would be found liable,” according to Investopedia. Intentional damage, contractual liabilities, and criminal prosecution are not covered by liability insurance coverage.

Rent Loss Insurance and/or Business Interruption Insurance

Rent loss insurance, also known as fair rental value coverage, is for landlords and “covers a loss of rental income if your property becomes uninhabitable to a current tenant due to covered damages beyond your control.”

An example of this damage might include perhaps a tree falling on the roof of your property or a burst pipe.

Business interruption insurance, on the other hand, is coverage that can replace “business income lost in a disaster.” This disaster might include a fire or natural disaster.

Business interruption insurance, however, is sold as an add-on; not as a standalone policy.

Flood Insurance

Heavy or prolonged rain, melting snow, coastal storm surges, blocked storm drainage systems, or levee dam failure… Oh my! All of these scenarios can cause flooding in your commercial property.

(And secret’s out… Water damage isn’t as cheap to repair as you think it is! Water damage can cost a business owner anywhere from $5,000 to $50,000…)

The solution? Flood insurance is a type of property insurance “that covers a dwelling for losses sustained by water damage specifically due to flooding,” according to Investopedia.

Premises Liability Insurance

Premises liability coverage pays claims for accidents that involve guests that take place on a business property. Regardless, a property owner, by law, is responsible to make appropriate efforts to ensure those visiting their property are entering a safe environment.

Of course, this is not a comprehensive list of all the commercial insurance you might need as a property owner. The coverage necessary will vary depending on your industry, location, etc.

What Happens If You’re Underinsured?

So, what happens if your coverage doesn’t cover what you need? Well, here Brenda Jo Robyn, Founder of Competitive Edge Insurance provides an example.

[Insert Video: https://drive.google.com/file/d/1MV72vxmwmHykFSiALeteiCjp_wjkbqrT/view?usp=sharing]

According to Brenda Jo, some individuals are having difficulty placing property coverage for a building. Why? Because many buildings today now have solar panels.

Interestingly enough in some of these cases, the property inside the building is actually worth more than the building itself.

“So, now you have solar panels, which introduces a possibility of a leak. The panels may be installed perfectly; but in California, you have earth movement and water can intrude over time. 

“I see many companies approaching California building owners who have flat roofs, selling them solar panels because then they can self-generate electricity for the building and gather back income.

If you have a manufacturing unit inside a building that has property that’s worth more than the building itself, that’s now an issue in California because of the potential for earth movement and therefore, weather intrusion.”

This weather intrusion poses an issue for a building owner looking to get insured. It’s important to consult your broker prior to investing in commercial property, or commercial property enhancements, as it could lead to greater issues down the line. 

Want to find out if you need to up your coverage? Read on in “How Does a Business Owner Know If They Are Underinsured?”

Why Do I Need Fire Insurance as a Property Investor?

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According to The National Fire Protection Association (NFPA), U.S. fire departments responded to about 353,100 house fires from 2014 to 2018. Moreover, the cost of recovering from a fire can range anywhere from $3,000 for a small fire and beyond $50,000 for larger fires.

This considered, it’s important to consider why you might need fire insurance—especially as a commercial property investor. Let’s discuss.

What is Fire Insurance?

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

The topic of fire insurance is especially important for those who own investment properties. How many investment properties you own, could determine whether or not you’re able to use personal lines of insurance to cover fire-related issues.

Personal Lines Insurance

What is personal lines insurance? Personal lines insurance refers to any insurance that covers against “loss that results from death, injury, or loss of property.” These policies insure individuals and/or their families against a number of personal (and therefore, financial) risks caused by:

  • Fire
  • Theft
  • Death
  • Natural disasters
  • Accidents
  • Lawsuits
  • Illness


Personal lines insurance is especially crucial for investors that may own multiple homes, apartments, and other rentals. Whether it be a wildfire or house fire, consider how much a property investor has to lose when it comes to this type of natural disaster.

As an investor, you need to be sure that your interests are fully insured. We can help you achieve this at Competitive Edge Insurance.

Insuring Your Personal Property

Today, the costs for insurance—fire insurance included—are increasing significantly. Regardless, insuring your property is extremely important. As we’ve mentioned, this is especially true for individuals who own investment properties; both commercial and residential.

There are many insurance options out there. Personal lines include:

  • Single-family homes
  • Individual condominium units
  • Temporary rental properties
  • Multi-family properties from one to four units.

Investment property insurance varies on a property-by-property basis and can be written on either a personal or a commercial policy. If you own fewer than 4 properties, you can use personal insurance policies—even though it’s your business.

Whether you’re an investor yourself, or an attorney or financial planner working with clients who invest in property, you must be sure these investments are fully insured without umbrellas so that the total limits of liability exceeds your property assets. 

Remember: All costs are going up, so property owners must plan accordingly.

This is an especially difficult pill for property owners and landlords to swallow. Although insurance is going up, you can’t increase rent by more than five to seven percent to bridge this gap.

For more information on how to insure your property, contact our team of experts at Competitive Edge Insurance. Until then, read up to find out what your homeowners insurance covers.

How to Protect Your Business From a Fire

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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.

Seven Steps to Avoid Cyber Security Threats

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Cyber security is more important today than ever before. Many businesses, especially small businesses, are the victims of cyber attacks daily—and the outcome for many is detrimental. In fact, did you know that 60% of small businesses who fall victim to cyber attack close their doors within six months?

The fact of the matter is that cyber threats—whether they be ransomware or phishing—are too grave to ignore the risks. Preparation and prevention are key to keeping your business safe. In this article, we’ll discuss seven steps to avoid cyber security threats.

Train Your Staff

First things first, train your employees. Make the guidelines of your business’s cyber security policy abundantly clear. Apart from training, employees should also be familiarized with and taught how to identify suspicious activity. Lastly, employees should know safe practices for sending and receiving data.

For example, they need to know how not to send excel spreadsheets in an email. Instead, create a zip file or convert the document into a PDF. Why? It is very easy to scrape data from an excel file while in an email.

Train Your IT

Your Information Technology (IT) department should additionally be trained. An IT department, according to Jobs.net, “oversees the installation and maintenance of computer network systems within a company.” They also help businesses maintain their digital infrastructure and provide troubleshooting.

This considered, IT departments need to know what to look for when it comes to cyber security threats.

Regularly Update Software

Firstly, your software should be particularly designed to block ransomware. Secondly, this software should be routinely updated.

To many people’s surprise, cyber attacks often happen when systems and/or software aren’t fully up-to-date, leaving room for weakness. These points of weakness are then exploited by cybercriminals to gain access to your network.

Don’t let it get to this point.

Promote a Security-Focused Culture

Forbes states that “the security culture of an organization is foundational to its ability to protect information, data and employee and customer privacy.”

(“Security culture” being “the ideas, customs and social behaviors of an organization that influence its security”).

According to Maryville University, encouraging a strong security culture within a business might look like:

  • Holding regular training sessions for employees to help them recognize external threats 
  • Teaching employees strategies for minimizing their risk of being hacked

Backup and Encrypt Data

Imagine, your business experiences a cyber attack—and none of your data is backed up. This would result in serious financial loss as well as loss of data, not to mention downtime.

Be sure to back up and encrypt your data instead. We advise you to encrypt:

  • Client and customer information
  • Employee information
  • And all other business data

Minimize Access to Your Systems

When it comes to allowing others access to your data, whether it be passwords, email, or a host of other personal information, some humans can lean a bit too far to the trustworthy side.

Having control over who can access your network is crucial—whether online or in-office. Better safe than sorry!

Invest in Cybersecurity Insurance

Of course, we have to mention the benefit of investing in cyber security insurance.

A cyber liability policy might include:

  • Data Breach Coverage
  • Business Interpretation Loss Reimbursement
  • Cyber Extortion Defense
  • Forensic Support
  • Legal Support
  • Coverage beyond a General Liability Policy

When it comes to cyber risk, there’s nothing worse than being ill-prepared. Read on to learn more about cyber coverage: how necessary is it?

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