Bundling Insurance: Pros and Cons

in General Business Insurance, News

If you’ve ever seen a Geico or Progressive commercial, you have probably heard the term “bundling insurance” thrown around, but is it actually worth it as a commercial provider?

Bundling insurance is when you choose to get multiple faucets of insurance through the same company. While it can sometimes save you money, there are potential downfalls as well.

Pros of Bundling Insurance

For commercial insurance, the pros of bundling your insurance might include:

Higher Savings

There are multi-policy discounts that might be applied to your bundled insurance. Depending on the provider and your personal preference, the discount can range anywhere from 5 to 25%.

Less Clutter

Mehmet Murat Ildan said, “If you have a complex life, make it simple; if you have a simple life, continue it that way!”

If you’re a small business owner, the concept of a simple life might be long gone—the pursuit of your passion can take up all the hours in the day. This is why finding small ways to declutter your life is crucial to finding balance.

Bundling your insurance might be a small way to organize your life and finances.

Insurance Security

If you make any claims on one type of insurance but are covered by the same company for another type, you are less likely to be dropped by them.

Cons of Bundling Insurance

Not Always Cheaper

While one of the main draws towards bundling insurance is saving money, there are cases where this isn’t the case. However, this all depends on your history. If you have a poor credit score or traffic violations, this might hinder your chances of getting a higher discount for bundling (likely in the 5% range compared to 20%).

You’re Stuck

If you choose to bundle your insurance through the same company, there isn’t a ton of room to look for other rates. If you’re bundling your insurance through the same company, they might raise your rates without much room for discussion.

Keep in Mind

If you do feel like bundling your insurance, there are some guidelines you can follow to ensure you understand what you’re getting into (even though there are short and long-term benefits of bundling).

Evaluate all third-party options
Compare quotes
Keep an open mind

Contact us at Competitive Edge today for information on bundling insurance!

Four Types of Insurance Coverage for your Business

in Bonding, Construction, Cyber Insurance, General Business Insurance, Health & Wellness, News

There are so many options for insurance that it can be overwhelming to know which research steps to take as a business. At Competitive Edge, we help you navigate what coverage best fits you and your business.

Health and Wellness

Niche beauty insurance solutions can miss areas of business insurance that might bridge gaps in the event of falls or other general liability claims. With health and wellness insurance, unique situations are bound to arise depending on your business’s current environment and changes.

The various Health and Wellness sectors that Competitive Edge caters to include:

Beauty
Spa Owners
Hair Salon Owners
Nail Salon Owners
Fitness
Yoga Studio Owners
Pilates Studio Owners
Dance, BarreFit, and Additional Exercise Studio Owners
Martial Arts Studio Owners
Health
Naturopathy Practices
Audiologists
Speech and Occupational Therapy Centers
Alternative Therapy Centers
Acupuncturists

To provide you with the right coverage from the right carrier, we need to know about your business. It’s not enough to put all cosmetology companies in one box, all spas in another, and all beauty product companies in yet another pre-planned box.

Cyber Liability

Cyber liability is a growing industry because of the evident rise in technology, and the hacking that comes with progress.

Does this sound like news to you? Don’t worry—we already wrote an article here for you to read about reducing cybersecurity risk.

It’s important to understand what might be covered under your cyber insurance policy.

Data Breaches
Intellectual Property Rights
System Failure
Damages to a Third-Party System
Cyber Extortion
Business Interruption

Traditional business liability insurance likely won’t cover any cyver risks associated with your business.

Bonding

Surety bonds offer an important secondary level of coverage.

A surety bond is a contract involving three parties. It is a promise to be liable for the debt, default, or failure of another. These three parties include:

The Principal: The party that purchases the bond and undertakes the obligation to perform the act as promised.
The Surety: An insurance company that guarantees the obligation to be performed. If the principal fails to perform the act as promised, the surety has a contractual obligation for the losses.
The Obligee: The party who requires and receives the benefit of the surety bond.

There are two categories of surety bonds: contract surety bonds and commercial surety bonds.

Contract surety bonds are typically written for construction projects. If a contractor defaults, the surety company is obligated to find another contractor to complete the contract. Another option for the surety company is to compensate the project owner for the financial loss incurred. There are a few bond types of contract surety bonds.

Contract sureties are required during a federal construction contract valued at $150,000 or more. State and municipal governments have similar regulations. Note that contract sureties may also be used with a private owner.

Commercial surety bonds, on the other hand, cover a broader range of surety bonds. These are required of individuals and businesses by federal, state, and local governments.

These bonds can be required by the government to obtain a license. For example, mortgage brokers, contractors, and auto dealers may be required to obtain a license or permit bond. These bonds can also be required to protect various statutes, regulations, ordinances, and other government entities.

General Business Insurance

General business insurance covers areas such as property damage, bodily injury, product liability, libel, slander, and copyright infringement.

Hindsight is no place for general business insurance conversations as lawsuits are a sad reality for many businesses. Just one bodily injury or property damage claim can take away everything you’ve worked so hard to build. General liability insurance provides businesses with coverage for most damages, injuries, medical costs, legal fees, and settlements in the case that you’re being sued.

Construction Insurance

Shock losses from large claims can make it difficult to get affordable insurance in the high-risk field of construction. If your insurance was canceled or non-renewed, we can help.

Our depth of experience and exemplary reputation with the carriers we work with can find a home for your hard-to-place and high-risk clients can find the right coverage. The fact is, every business can find coverage, you just have to take the time and know where to look.

The businesses we work with include:

Roofing
Construction
Commercial Property
Commercial Real Estate
General Liability (CGL)

Errors and Omissions Insurance

In the CRE industry, agents are at higher risk of being accused of failing to meet a client’s expectations, failing to document decisions or actions, or failing to act in a customer’s best interest. This could be an error on a title or an oversight in a property listing, which could lead to a costly lawsuit.

Errors and Omissions (E&O) insurance covers against financial losses from lawsuits filed as a result of an agent’s work in the real estate profession. These policies cover liability related to the following issues:

The client may claim that you made an error that led to financial loss. In a lawsuit regarding professional mistakes, you may be at risk of losing big, considering the size of commercial property transactions.

An example of this is when a real estate agent misstates the square footage of a property. If the agent has Errors and Omissions Insurance, however, they may be covered for attorney’s fees, court costs, settlements, judgments, and fines.

Potential E&O Exclusions

While it’s important to know what E&O insurance covers, it’s also important to understand potential exclusions. Some common exclusions in E&O coverage include claims resulting from dishonest or criminal acts. As well as claims associated with a polluted property. If any agent causes bodily harm or death to another person, or the agent causes damage to someone’s property, their claims will not be covered under E&O insurance.

In the CRE industry, it’s more common to face a lawsuit related to errors and omissions so it’s best to be covered before you need it. Roger J. Stewart is an expert in providing coverage for real estate professionals and has helped various CRE investors and agents avoid risk and save money throughout the years.

At Competitive Edge Insurance, we work with insurance carriers across the country to place all types of business coverage. We are always seeking out new insurance companies to write hard-to-place and high-risk business insurance.

Don’t let cancellation dissuade you from finding comprehensive coverage, we can help!

Contact us today at Competitive Edge to find out more information.

What Classifies High Risk?

in General Business Insurance, High-Risk Insurance, News

At Competitive Edge, we specialize in high-risk insurance. We often get the question, “What is high-risk insurance, and how do I know if I need it?”

Well, the answer is, if you’re a small business owner, general contractor, or even car owner, you likely need high-risk insurance. Depending on the industry you’re in, however, it can be difficult to fund coverage or losses.

There are a couple of ways to identify what classifies high-risk insurance.

Risk Class

Investopedia defines risk class as, “A group of individuals or companies that have similar characteristics, which are used to determine the risk associated with underwriting a new policy and the premium that should be charged for coverage.”

There are some main points that are needed to understand the risk that is associated with coverage:

“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.”

Once you determine if you qualify for high-risk insurance, there are additional factors that will determine your premium. These might include:

Age
Amount of coverage
Number of years the coverage is guaranteed
Risk class
And more!

Additional Classifications

One example of a scenario of hard-to-place insurance is from our very own founder, Brenda Jo Robyn of Competitive Edge Insurance. Brenda Jo had to pay an extra $15,000 in order to get her directors on board for her project.

If you have had excessive losses, shock loss, or are a startup (tech and service), it can be challenging to get professional liability coverage. There are, in fact, some extreme costs associated with high-risk coverage.

So, even the professionals have dealt with the difficulties and hoops that surround high-risk insurance (trust us, we get how frustrating it can be to navigate). That’s also why we’re here to help!

Contact Us Today!

Competitive Edge Insurance can help you perform a comprehensive review of all your risk exposure.

Reach out today for more information from our experts on high-risk insurance!

BEWARE: Workers’ Comp Insurance for Independent Contractors

in Construction, General Business Insurance, High-Risk Insurance, News, Workers' Compensation

As you may know, most states require employers to have workers’ compensation insurance. These insurance policies can help recover most of your employee’s lost wages while they recover from a work-related injury or illness.

It also helps to cover your employee’s medical expenses as it provides their family with death benefits if they, unfortunately, pass away.

What is Workers’ Compensation Insurance?

Workers’ compensation insurance are policies that provide medical benefits and wage compensation to workers injured on the job, in exchange for eliminating their right to file a lawsuit against their employer’s negligence.

Workers’ compensation benefits are designed to help employees if they are unable to work, cover medical expenses, as well as other expenses and rehabilitation costs associated with disability or illness. As you look to explore workers’ compensation options, it’s important to look for one that provides adequate coverage and compensation for your employees.

When you invest in a properly designed policy, it ensures you and your employees remain financially secure. It’s also important to look at the specific benefits that are offered within your policy. Typical workers’ compensation insurance policies cover medical benefits.

What is Covered with Workers’ Compensation Insurance?

Specific workers’ compensation laws vary depending on your state; however, the most common compensation states that require workplace injury insurance include the following:

Payment for lost wages
Vocational rehabilitation
Permanent disability
Temporary disability
Medical costs and treatment

How to Prepare for Employee Claims

Accidents happen. It’s part of life. It doesn’t matter how safe your business is, there’s always the chance an employee will get sick or injured on the job. For this reason, nearly every state requires business owners to have coverage for their employees. Different states, however, have various regulations.

Ensure you have an expert on your team to help understand what your specific business needs are. For example, if your business is in California, you are required to obtain workers’ compensation insurance even if your business is as small as just one employee. In Florida, however, you need this coverage if you have at least four employees.

Signing up for workers’ compensation depends on the location of your business. Typically, states recommend you purchase workers’ compensation insurance through a private insurance company, while others may require you to buy it through a state-run insurance fund.

It’s also important to understand the cost associated with investing in workers’ compensation insurance. The risk associated with your specific business will determine the cost of your insurance payments. This all sounds pricey, but remember: the costs associated with not having workers’ compensation insurance might be the motivation you need to start considering your options.

Without workers’ compensation insurance, you put yourself and your business at risk of fines, and could even face potential jail time for not complying with regulations. If an employee runs into a problem that would have been covered by workers’ compensation insurance, you may be responsible for covering their expenses, and you may also open yourself up to litigation.

What You Need to Know About Workers’ Compensation as an Independent Contractor

Every contractor needs general liability insurance. While the law does not require it, it is considered best practice to ensure against the kinds of injuries and lawsuits general liability is targeted to.

Large contractors may own commercial buildings that require property insurance, where smaller contractors or those with a specialty may need different coverage.

At Competitive Edge, we don’t claim to know your needs until we talk to you. What’s right for one company may not be a choice that meets your needs. Even if you have suffered a shock loss, large claim, or lawsuit, and find that your options have narrowed, we can work with you.

The first step is to show us under the hood so we can help you find the right carrier and coverage to protect your business today and always. Contact Competitive Edge Insurance today for more information about high-risk coverage today!

The Key Differences between General Contractors and Construction Managers

in Construction, High-Risk Insurance, News

Hard to place insurance is not impossible to place.

Although being a General Contractor (GC) and Construction Manager (CM) may sound like the same type of position, the difference is often overlooked in the industry. The difference between positions equates to a difference between the type of construction insurance needed.

General Contractor

A General Contractor “agrees to build the entire project—they’re the party ultimately responsible for the timely and proper performance of the work for a set price.”

The general contractor isn’t doing the manual labor at the job site, but instead managing the subcontractors who do.

In terms of insurance as a general contractor, general liability insurance is the type of high-risk coverage you should be looking toward. With construction coverage, there are specific risks to be made aware of, including:

Canceled or non-renewed insurance coverage
Repeated rejection from multiple carriers within a short time period
Shock losses
The high volume of small claims
High risk of property damage, illness, injury, or death

Construction Manager

On the other hand, a Construction Manager, “is a consultant hired by a developer or property owner to manage and oversee the performance of contractors that they’ve hired. The developer, owner, etc. hire each of these contractors directly.”

When you’re a construction manager, the type of insurance that will give you the best coverage is professional liability insurance.

The main difference between a GC and CM is the legality behind their hiring process, including coverage. The CM is hired, for lack of a better word, as a consultant whereas a GC is given a distinct payment with the job fully in their hands. The construction business needs to be protected with high-risk coverage, and Competitive Edge specialized in construction coverage.

At Competitive Edge Insurance, we work with insurance carriers across the country to place all types of business coverage. We are always seeking out new insurance companies to write hard-to-place and high-risk business insurance.

Don’t let cancellation dissuade you from finding comprehensive coverage. We can help! Learn more by connecting with Competitive Edge Insurance today.

Cannabis Insurance: Risks and Coverage

in Cannabis, Health & Wellness, High-Risk Insurance, News

The emerging cannabis market has created a new space for industry coverage. There are, however, both general and unique risks of cannabis insurance that shouldn’t be overlooked.

Let’s talk about the risks of cannabis insurance and what coverage is available to keep your business protected.

Risks of Cannabis Insurance

Claims can vary, but some of the most common in the cannabis industry include:

Bodily injury or property damage caused by a product misuse
Product-related/manufacturing defects that result in some kind of loss
Inhaled, edible, and infused products that may have caused illness
Faulty/misused equipment (which includes vape cartridges, batteries, and lighters)
Marketing/labeling misrepresentations

Moreover, The National Association of Insurance (NAIC) acknowledges that companies might need to reevaluate their coverage when it comes to cannabis and hemp. With the rising popularity of different forms of cannabis (for example, edibles), there are mental effects that need to be accounted for with insurance risk.

NAIC claims that products like edibles “increase the risk of product liability and safety recalls. The psychoactive effects of CBD raise the risk that products may be deemed mislabeled, misrepresented, or harmful.”

Research shows that young people have shown more interest in illicit drug use in recent years, which could change the insurance services and risks available.

Some additional and unique risks associated with cannabis coverage to consider include:

Cannabis businesses are complex
The market is constantly changing
Policies are not on the same playing field
Vaping products muddle the market

What Insurance Does Your Cannabis Business Need?

So, what insurance does your cannabis need to combat these risks? Below are three of the best ways to protect your cannabis business.

Product Liability Insurance

Cannabis and CBD products require custom product liability policies for their:

Manufacturers
Retailers
Distributors
Cultivation
Facilities
And more

This coverage applies to any business bringing a product to market. If an incident were to occur, these custom product liability policies kick in to help defend your company against claims and allegations and to pay damages if your business is found liable.

Considering the potential claims that can be made against your business (listed under “Risks of Cannabis Insurance”), product liability insurance is an essential part of your cannabis coverage.

Product Recall Insurance

Similarly, you may want to consider product recall insurance, which can cover the costs of removing a defective product from the market and further prevent third-party claims.

Employment Practices Liability Insurance (EPLI)

Lastly, your cannabis business might consider EPLI.

Employment Practices Liability Insurance (EPLI) is insurance that provides coverage to employers against claims made by employees.

EPLI policies typically extend coverage to the following:

Wrongful Termination
Sexual Harassment
Wage-Related Claims
Claims of Unequal or Unfair Pay
Discrimination Claims (i.e. age, race, gender, sexual orientation)
Third-Party Claims
And more

According to Amtrust Financial, the below are also common employer missteps that may be covered:

Failure to Hire or Promote
Libel, Slander, Defamation of Character, or Invasion of Privacy
Wrongful Infliction of Emotional Distress
Wrongful Discipline or Demotion

Who Needs EPLI?

The fact of the matter is that some industries are more susceptible to these types of claims than others. Highly susceptible industries include the cannabis industry as well as healthcare, professional services, restaurant, food services, retail, and manufacturing.

Again, EPLI claims can be detrimental to businesses of all sizes and types. This policy helps protect against many kinds of employee lawsuits which is why it’s important to invest in coverage, especially for a client-facing business such as cannabis.

A Final Word

Naturally, carriers have their own best interests at heart and only cover the safest bets to protect themselves. At Competitive Edge Insurance, we build your case with the carrier to ensure that you get the right coverage at the best price based on your real-world conditions.

Read on if you’re wondering the difference between cannabis and hemp insurance, then get in touch with our team today.

What’s happening with EIDL?

in EIDL, General Business Insurance, News

Are you like many others received an alarming email from the Economic Injury Disaster Loan Program (EIDL) through the Small Business Administration (SBA)?

As part of EIDL requirements, you are required to have hazard insurance in order to apply for the EIDL loan. The SBA recently sent out an email to all of those who have received the EIDL loan, and they are requiring proof of insurance in order to get your loan forgiven.

As a business owner, if you do not have hazard insurance, now is the time to get it! Brenda Jo at Competitive Edge has helped many people acquire hazard insurance to ensure they remain compliant with the EIDL requirements.

Here’s a look at what the email states, and why you might need hazard insurance.

The email stated:

“The SBA is launching a new round of Economic Injury Disaster Loan (EIDL) Advances – called Targeted EIDL Advance – which provides eligible businesses with $10,000 in total grant assistance. If you received the EIDL Advance last year in an amount less than $10,000, you may be eligible to receive the difference up to the full $10,000. The combined amount of the Targeted EIDL Advance and any previously received Advance will not exceed $10,000.”

Along with additional information claiming that:

“Businesses eligible for the Targeted EIDL Advance must meet ALL the following eligibility criteria:

Located in a low-income community, as defined in section 45D(e) of the Internal Revenue Code. The SBA will map your business address to determine if you are in a low-income community when you submit your Targeted EIDL Advance application.
Suffered economic loss greater than 30 percent, as demonstrated by an 8-week period beginning on March 2, 2020, or later, compared to the previous year. You will be required to provide the total amount of monthly gross receipts from January 2019 to the current month-to-date.
Must have 300 or fewer employees. Business entities normally eligible for the EIDL program are eligible, including sole proprietors, independent contractors, and private, nonprofit organizations. However, agricultural enterprises, such as farmers and ranchers, are not eligible to receive the Targeted EIDL Advance.”

The EIDL has said that loans won’t be forgiven unless you have proof of insurance coverage. If you’re looking to check which Covid-19 loans are forgivable, check this list.

Why is SBA changing its loan policy?

Lenders and CDCs are required to ensure that all collateral with a recoverable value is adequately insured in order to protect the ability to recover on the SBA loan. Generally, SBA will not require that you pledge collateral to secure a physical disaster home or business loan of $25,000.

What type of insurance do you need?

Under the requirements for the EIDL, the SBA requires that your business has hazard insurance to cover 80% of the loan amount. Hazard insurance is a term for coverage the may be included within several different types of property coverage.

If you have any kind of business property insurance, you are probably covered. Commercial property insurance is considered hazard insurance. This coverage protects your company’s physical assets, like buildings, furniture and equipment, supplies, computers, inventory, customer’s goods, signs, fencing, and even lost income from damage or loss.

The SBA does not allow personal hazard insurance to be considered for loans. Business auto insurance is also not allowable coverage for this requirement.

Do you have the right coverages and the correct amounts to satisfy your SBA loan?

The SBA is requiring you to have hazard insurance as a requirement to apply for the EIDL loan. If you received EIDL funds without coverage, you should contact your insurance agent as soon as possible. The SBA requires that at least 80% of your loan amount is covered with hazard insurance. It may be beneficial to have 100% of your business property value covered with hazard insurance.

There are a few other rules related to the insurance coverage that the SBA has stated:

The insurance must be in the name of the business and must show proof of business property.
If someone is a sole proprietor, and they have a DBA, the DBA must be on the policy.

As you look to ensure you provide proof of insurance that is compliant with the SBA’s requirements, reach out to Brenda Jo Robyn at Competitive Edge for all of your insurance needs.
Please submit the requested documents as soon as possible to complete your file. Talk to Brenda Jo Robyn today for more information!

It’s a Good Time for an Insurance Review!

in General Business Insurance, News

Maybe you’re thinking, “I’ll review my insurance at the end of the year, along with all my other financial planning.”

Think again, because right now is a good time for an insurance review!

Why Should I?

At Competitive Edge Insurance, we believe that you are more than a history of insurance claims. There’s so much more to the story of your business than shock losses and industry pivots. We make sure to learn about your whole business because articulating who you are as more than a series of profit and soss (P&L) statements allows carriers to confidently cover you and your business.

Here are some steps that you as an individual, health and wellness practice, or general contractor can take to review your insurance now.

What Are The Steps?

One of the first questions to ask yourself is, “What has changed over the past year?” The insurance coverage you have is bound to change based on the previous 12 months. This is even more so given the aftermath of a global pandemic.

Next, one key factor in an insurance review is to consider risk. To successfully mitigate risk, you need to ensure there is a transparent and frequent line of communication between project managers and stakeholders. Stakeholders might include owners, contractors and subcontractors, architects, and so on, depending on your project.

Work in tandem with stakeholders and go down the rabbit hole: What is everything that could potentially go wrong? After going down the rabbit hole, assess the risk. For each potential risk, rate it. On a scale, discuss the impact each risk would have on the project. Then, assign priority to the largest risks.

After evaluating each risk that is currently affecting your coverage, seek more developed opportunities. You may qualify for discounts if circumstances have changed, which is worth looking into.

How?

Let’s connect! At Competitive Edge Insurance, our team is dedicated to your safety, security, and ongoing success. Our clients stay with us for decades because we have their business’ best interests at heart and the depth of knowledge and experience to protect and insure them no matter what the market conditions.

What You Need to Know About Insuring your Fitness Studio

in Health & Wellness, News

The health and wellness industry is booming. Over the last few years, there has been a greater demand for health and wellness services beyond traditional medicine. As a fitness center or studio owner, you prioritize the health and wellness of yourself and your patrons. As you look to continue to grow your business, it’s important to also look out for the health and wellness of your business.

Whether your fitness studio focuses on cycling, yoga, martial arts, boxing, or it is a classic space for people to come throw some weight around, you need to ensure your business is protected. Let’s get started!

Insurance Coverage for Fitness Studio Owners

General Liability

General liability coverage is, first and foremost, the coverage you need to cover incidents when your employees, products, or services may be deemed negligent or cause injury or property damage. This coverage protects your fitness business from general claims from patrons when they are on your property.

Professional Liability

This coverage ensures your business remains protected in case of claims against employees who act on your behalf. For example, trainers, physical therapists, or yoga instructors who work in your studio.

Workers’ Compensation

You should also ensure you have workers’ compensation insurance to cover potential employee injuries while on the job. Some states contain workers’ compensation statutes that cover injury in an employer-sponsored fitness center, therefore it’s important to understand what your state covers.

Occurrence Coverage

Occurrence coverage covers incidents that have occurred in the past. Within the fitness industry, an example would be a former patron injuring themself on your equipment and issuing a complaint years later.

Business Income & Extra Expense Coverage

Accidents happen, however, if your studio isn’t properly insured, those accidents may turn into something much larger. In the case of fires, floods, or other studio-closing events, you need the coverage to relocate your facility and continue to provide for your members.

Business Personal Property Coverage

Your fitness studio may include additional amenities such as locker rooms, pools, a sports court, and classrooms. These amenities also need coverage in the case of unexpected accidents.

Equipment Breakdown Coverage

Coverage in the case that equipment breaks is important to have if you own a fitness facility. This coverage protects you and your business from expenses that are incurred due to the breakage of equipment.

Premises Liability Coverage

This coverage is essential to your fitness studio, as you likely have a high volume of foot traffic. This coverage, however, not only covers potential injury within your facility, but it also covers injury if the patron gets injured on another area of the premises (for example, in the parking lot).

There are a few ways you can begin to mitigate these risks. First, your facility should provide spotters for weight lifting–– especially with free weights. You should also ensure your facility has a well-maintained parking lot and entrances/exits to limit the risk of slips and falls.

Participant Liability & Accidental Medical Coverage

Not all fitness studios need this coverage. This coverage mainly applies to fitness facilities that sponsor tournaments or supervised competitions. This liability insurance protects from liability claims that are a result of injury during competitions.

What you need to know about employee insurance coverage

As a fitness studio owner, you may decide to hire independent contractors, trainers, physical therapists, or teachers. In doing so, you will need to make sure they have a certificate of insurance with a general liability insurance limit of at least $1 million incidental medical malpractice coverage.

Depending on how you choose to classify your employees, the insurance options may vary. If you choose to classify your employees as W-2, your trainers and other employees will be covered under your business’s liability coverage.

It’s equally as important to understand when you can classify your workers as 1099 contractors. Many states argue that as a fitness center, you are setting appointments, schedules, and dress codes, which leads to an employee/employer relationship.

As you look to begin your journey in opening your fitness center, you need a partner who is ready and prepared to help you mitigate your risk. Contact Brenda Jo and her team at Competitive Edge to get started!

Your Guide to Reducing Cybersecurity Risk

in Cyber Insurance, News

Cyber threats were at an all-time high during 2020. As a large portion of the population transitioned to a work-from-home environment, cyber attackers viewed this new reality as a wonderful opportunity to prey on cyber vulnerabilities.

According to SonicWall, in 2020, 304.6 million ransomware attacks occurred. As well as 81.9 million crypto hacking attacks, 4.8 trillion intrusion attempts, and 5.6 billion malware attacks. With these statistics in mind, it’s important to start working toward mitigating your cyber risk today.

Let’s start by understanding what a cybersecurity threat is.

Cybercriminals target individuals and businesses alike. Cyber hacking ranges in damages– it can be as small as a pesky popup, or as large as malware that destroys your entire organization’s system. Understanding where your business may be at risk is just the beginning.

As you likely know, data is one of your greatest assets as a business and is becoming increasingly important. Protect your digital assets, and ensure you have the protection needed to ensure the safety of your business and your client’s information.

Preparing for a cyber attack.

Before an attack

First and foremost, you should put the proper controls in place. These controls may include:

Using secure Password-protected networks
Avoiding suspicious links
Ignoring online requests for private information
Password-protecting all devices that connect to the internet
Adding variation to your passwords
Reporting suspicious activity right when you see it.

You should also ensure your train and inform your employees of the proper protocol to begin mitigating your cyber risk. Employees need to be trained on how to avoid:

Email threats: Email is one of the most common ways for hackers to get sensitive information from your employees. Your employees should always verify the sender, never open suspicious attachments, and never click on links if you don’t trust the source.
Spam threats: Ensure your employees know to use their spam filter, flag spam when it appears in your inbox, and know to only give their email to trusted sources.
Phishing threats: Employees should know to never offer sensitive information, be aware of potential suspicious links, double-check website addresses, verify who they’re communicating with, and trust their suspicions.
Social Media threats: Employees should be sure to manage their privacy settings on social media, never click on suspicious links that have been shared with them, and think twice before posting and ensure they aren’t sharing information that may be harmful.

During a cyberattack

In the case that a cyberattack occurs, you need to understand the steps you should take. First and foremost, you must take immediate action. If a problem is found, disconnect your device from the internet and restore your system fully. Lastly, report the incident to your IT Department as soon as possible!

After a cyberattack occurs

Once you’ve taken the steps listed above, three are a few follow-up steps you should take.

File a report with the local police: Ensure there is a record of the incident.
Report to the internet crime-compliant center: Report any identity theft to the Federal Trade Commission.
Consider other information: If your personal information was compromised, what else could be at risk?

Cyber Insurance for Cybersecurity Threats

As you start to consider the potential cyber risks associated with your business, consider investing in Cyber Insurance. It’s important to understand what would be covered under your cyber insurance policy.

Data Breaches
Intellectual Property Rights
System Failure
Damages to a Third-Party System
Cyber Extortion
Business Interruption

Traditional business liability insurance likely won’t cover the cybersecurity risks associated with your business.

As cyber threats continue to proliferate, ensure your business remains protected.