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How to COPE in an Inflationary Environment

November 28, 2022/in General Business Insurance, News, Video

Recently, Hartford did a study that showed that 75% of all commercial buildings were underinsured. And of those that were underinsured, they’re at 40% underinsured. That means that if you have a property that’s worth a million dollars, you’re only having it insured for 600,000.

If you have a catastrophe, you’re only going to get paid the 600,000 for the rebuild costs now, and not the million dollars that it’s going to cost to make you whole again. What’s really important for commercial building owners is to understand how the insurance carriers rate your properties and it’s called COPE, C-O-P-E: construction, occupancy, protection, and exposure.

In this blog, we’ll discuss COPE and learn more about it directly from the founder of Competitive Edge Insurance, Brenda Jo Robyn.

What is COPE?

As a commercial building owner, it’s important to understand how your property is being rated for insurance purposes. The four main factors that go into this rating are construction, occupancy, protection, and exposure (COPE).

Construction is how your building is built. Things like the roof, walls, windows, and doors all factor into how well your building can withstand a disaster. 

  • What is the building made of? 
  • What is the age of the building? 

All commercial buildings are going to be rated on a scale of 1 to 10, with 1 being the best. So if you have a fire resistant building, that would be a 1. If you had a wood frame building, that would be a 10. 

Occupancy is what your building is used for. If you have a lot of people coming in and out of your building, or if you have hazardous materials inside, that will affect your rates.

  • Who’s in it? 
  • Is it manufacturing? Is it retail? 

So if you have a retail store, that would be a low hazard. If you had a chemical plant, that would be a high hazard. 

Protection is what you do to protect your building. Things like security systems, sprinklers, and alarm systems can help lower your rates.

  • What are the protections you have there? 
  • How far away is the fire department? 
  • Do you have a fire hydrant on your block? 

So if you have automatic sprinklers, that’s going to give you a better fire rating. 

Exposure is how likely your building is to be damaged in a disaster. If you’re in a high-risk area for hurricanes or tornadoes, your rates will be higher than if you’re in a low-risk area.

  • What is around your building? Fire brush, lakes, potentials for flood? 
  • What is the neighborhood like? Is it in a crime area? 

If you’re on a busy street, that’s going to be a high exposure. If you’re in the middle of a field, that’s going to be a low exposure.

All these factors are what carriers take a look at. Understanding COPE can help you make sure you’re getting the best possible rate on your commercial property insurance. 

Instability Caused By Inflation

Currently, insurance rates have been increasing and they have also been very unstable for the last year. The instability is being caused by inflation.

Supply Chain Issues

The raw material costs are all over the place. They don’t know how much they’re gonna cost when they get ordered by the contractor. Some can order it a week out and some are being told, “Hey, here’s your bill now, but when it comes in, we’re gonna give you what the real cost is.” Obviously, the sluggish supply chain issues haven’t gone away. 

Demand for Skilled Labor

There’s a high demand for skilled labor. Not only are we having people retire, but we don’t have enough people being apprentices and it’s not being able to translate to more people being able to do a job. 

Lingering COVID Effect

And lastly, the lingering COVID effect. Unfortunately, during COVID, people were placing insurance on buildings that were only looked at over the internet on your desktop. And what they come to find out later is that the building has not been maintained, that there’s storage of plastics in there and there’s no sprinkler system. So this has all led to an increase of rates.

What Can You Do?

And what can you do? In order to be a building owner that’s gonna continue to make money, you have to control your costs. And how do you do that? You have to make a commitment to do so, and you’re gonna do it by controlling your losses. 

Steps to control your costs: 

  • Maintain your buildings 
  • Update the electrical wire, heating, plumbing, roofing 
  • Have good housekeeping 
  • Perform regular safety checks 

What is it that’s been able to be implemented in the last three years so that it protects your office building better now than it was three years ago? All these things will go ahead and poise you into a place where the carrier will look at you favorably and give you more credits. 

When you are able to show the insurance company that you are in a mode of safety, maintenance, and security, carriers will give you rates that you can live with and you won’t have to pass on to your customers. It’s a win-win for everybody.

A Final Word

All of these things go into how the insurance carrier rates your property and what they’re going to charge you for premiums. As a commercial building owner, it’s important for you to understand how your property is being rated so that you can make sure you’re properly insured. If you have any questions about your commercial property insurance coverage, reach out to us today! 


Or if you’re interested in learning more from Brenda Jo, you can check out her other videos including, Why You Need to Audit Your Commercial Property Insurance.

https://compedgeins.com/wp-content/uploads/2022/11/Commercial-Buildings.jpg 836 1255 Brenda Jo Robyn https://compedgeins.com/wp-content/uploads/2020/11/logoweb.png Brenda Jo Robyn2022-11-28 09:00:002022-11-28 02:21:01How to COPE in an Inflationary Environment

Get to Know Our Founder: Her Rotary Involvement

October 2, 2022/in News, Video

Brenda Jo Robyn is not like most business owners. Her background in epidemiology, love for running, and involvement in the Rotary Club of Coronado, California set her apart.

Watch the video below to hear more about Brenda Jo’s involvement in rotary, and the three primary causes that she supports.

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What is Rotary?

First, what is rotary? According to the official website, “Rotary is a global network of 1.4 million neighbors, friends, leaders, and problem-solvers who see a world where people unite and take action to create lasting change – across the globe, in our communities, and in ourselves.”

Their Mission

At Rotary, their mission is to “provide service to others, promote integrity, and advance world understanding, goodwill, and peace through our fellowship of business, professional, and community leaders.”

Brenda Jo’s Rotary Involvement

As you can see from her t-shirt, Brenda Jo is part of the Coronado Rotary Tech Team. This is one of three areas she focuses on in the rotary.

“During COVID we wanted to keep meetings going,” says Brenda Jo. “So, a gentleman in our club started doing Zoom meetings, and I joined a year and a half ago to help out.”

Today, the Rotary Club of Coronado conducts hybrid meetings with international speakers and past youth—this is where Brenda Jo helps out.

“I am on the Tech Team and get to help set up. I do the actual recording [and] help with making the video afterward. It’s been really enjoyable, and it’s kept me up to date with tech as it keeps moving forward!”

The other two areas of Brenda Jo’s focus include:

  • End Polio Now (Did you know polio is still not eradicated?), and
  • Low Tide Ride and Stride

The Low Tide Ride and Stride event happens every year. 

“Once a year,” says Brenda Jo, “you get to run, [walk], or ride your bike on the beach… on super low tide.”

The Low Tide Ride and Stride event is the “Coronado Rotary Club’s biggest fundraiser with a majority of the proceeds going to help support local combat-wounded veterans and first responders.”

“We raise quite a bit of money every year for these organizations and their families,” says Brenda Jo. In fact, hundreds of thousands of dollars have been donated over the years.

When we asked for Brenda Jo’s final thoughts on rotary, all she had to say was, “I love Rotary. Love, love, love Rotary!”
Interested in hearing Brenda Jo chat more about another area of her expertise—commercial insurance!? Read on to learn about understanding classifications for workers’ comp dual wage.

https://compedgeins.com/wp-content/uploads/2022/09/Get-to-Know-Our-Founder-Her-Rotary-Involvement-1.png 628 1200 Brenda Jo Robyn https://compedgeins.com/wp-content/uploads/2020/11/logoweb.png Brenda Jo Robyn2022-10-02 07:00:002022-09-19 09:54:25Get to Know Our Founder: Her Rotary Involvement

The Coverage Pitfalls of Insurtech

July 31, 2022/in General Business Insurance, News, Video

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?”

https://compedgeins.com/wp-content/uploads/2022/07/The-Coverage-Pitfalls-of-Insurtech.png 628 1200 Brenda Jo Robyn https://compedgeins.com/wp-content/uploads/2020/11/logoweb.png Brenda Jo Robyn2022-07-31 07:00:002022-07-22 13:11:40The Coverage Pitfalls of Insurtech

Why You Need to Audit Your Commercial Property Insurance

July 10, 2022/in General Business Insurance, News, Video

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.

https://compedgeins.com/wp-content/uploads/2022/06/Why-You-Need-to-Audit-Your-Commercial-Property-Insurance-1.png 628 1200 Brenda Jo Robyn https://compedgeins.com/wp-content/uploads/2020/11/logoweb.png Brenda Jo Robyn2022-07-10 07:00:002022-07-22 13:12:28Why You Need to Audit Your Commercial Property Insurance

What Does Workers’ Comp Look Like for Remote Employees?

January 23, 2022/in General Business Insurance, News, Video, Workers' Compensation

Due to the COVID-19 pandemic, remote work is more common than ever, but how does workers’ compensation work for remote employees? How can an injury be proved when the individual is not in a corporate setting? What does workers’ comp look like for remote employees, and what does it cover?

Brenda Jo Robyn, founder of Competitive Edge, joins us on video to answer all of these questions.

Are Employers Required to Provide Workers’ Comp Coverage for Remote Employees?

Yes. Employers are required to provide workers’ comp for all employees, whether they’re in the office, out in the field, or in their homes working.

What Does Workers’ Comp Cover for Remote Employees?

“Workers’ comp covers everything the same across all policies and all carriers,” says Brenda Jo. “What’s different are the rates that are charged based on the payroll, the industry, and the number of employees per class code within that industry.”

All of these elements dictate the rates based on which carrier takes the coverage for the employer.

Interesting to note is the new class code that was created when remote work skyrocketed. In California, a new class code was created for telecommuting. With this new class code, you have to be at home working or in a remote workplace 50% of the time or more.

If you are coming into the office for work, you will still be considered an office employee; otherwise, you’ll be in the new class code at a very inexpensive rate. Regardless, all employees will still be covered.

How Can Employers Prevent Claims From Being Made?

It’s tricky. “It’s been a really difficult thing for employers to make sure that all of their employees are set up ergonomically for remote work,” says Brenda Jo.

Setting up ergonomically includes:

  • Ensuring cords are not in the way of tripping
  • Identifying where remote employees are sitting
  • Identifying how remote employees are sitting (as to not strain their necks, etc.)
  • And more

Some employers have hired ergonomic consultants who help remote employees set up their workplace correctly, in an attempt to avoid workers’ compensation claims.

How Can Remote Employees Make Workers’ Compensation Claims?

Things get tricky when it comes to a claim made at an individual’s house or a local cafe, for example.

Let’s say a remote employee is working at a Starbucks when they slip, fall, and get injured. Brenda Jo tells us it’s going to be hard to see where that claim will fall. 

“There’ll be a lot more investigation depending on how severe the injury really ends up being,” says Brenda Jo. “You can make that claim [as a remote employee], valid or not. Then it’s up to the carrier to decide whether the claim is valid through their inspections, investigations, as well as doctor’s reports, etc.” In some cases, it might include an applicant attorney getting involved.

Read on to learn more about what to expect this year from workers’ compensation policy renewals.

https://compedgeins.com/wp-content/uploads/2021/12/What-Does-Workers-Comp-Look-Like-for-Remote-Employees.png 628 1200 Brenda Jo Robyn https://compedgeins.com/wp-content/uploads/2020/11/logoweb.png Brenda Jo Robyn2022-01-23 07:00:002021-12-21 09:24:44What Does Workers’ Comp Look Like for Remote Employees?

Workers’ Compensation Policy Renewals: What to Expect

January 9, 2022/in General Business Insurance, News, Video, Workers' Compensation

January 1st sees the most number of workers’ compensation policy renewals. What does this mean, and what can we expect during the first month of 2022 as a result? Let’s talk about what to expect in terms of premium increases and risk mitigation.

Today, we’re handing over the mic to Brenda Jo Robyn, founder of Competitive Edge Insurance. Here’s what she has to say.

What Does January 1st Mean for Businesses?

January 1st is typically the day when the highest volume of workers’ compensation policies will renew.

Right now, there’s a backlog of quotes, which results in stressed underwriters and quotes coming out late.

According to Brenda Jo, the one thing you can expect is premium increases this year. “There is going to be quite a significant adjustment in several areas in which companies can expect to see,” says Brenda Jo. “Ten to up to 80% increases in their premiums based on the class code.”

Why Is This Increase Important?

People should be talking about this.

“I think for many, it’s going to come as a shock,” says Brenda Jo. “However, if they’re working with their broker, they’ll have already known about this since October and make plans accordingly.”

If your business is going to have that much of an increase, you need to decide how your pricing structure for your services or products will change in the next year to compensate.

“It’s really important to know what you’re walking into,” says Brenda Jo. “The rate increases will start on 01/01 and it’s carrier by carrier.”

What Determines Premium Increases?

There’s a base that’s put into play by The Workers’ Compensation Insurance Rating Bureau of California (WCIRB), which is our rating and statistical bureau for data. The WCIRB gives us the trends and where to go.

It’s important to note, however, that carriers can apply a lot of credits.

Elements that might bring about credits include:

  • Risk mitigation
  • Safety policies in place
  • Safety training
  • Low turnover 

Some carriers can give credits from five to 40%, depending upon the class code.

For those of you who are interested in learning more about changing costs in 2022, check out this video when Brenda Jo speaks about what to expect from changing contractor costs.

https://compedgeins.com/wp-content/uploads/2021/12/Workers-Compensation-Policy-Renewals-What-to-Expect-1.png 628 1200 Brenda Jo Robyn https://compedgeins.com/wp-content/uploads/2020/11/logoweb.png Brenda Jo Robyn2022-01-09 07:00:002022-01-12 10:00:12Workers’ Compensation Policy Renewals: What to Expect

Certificates of Insurance (COIs): What You Need to Know

December 19, 2021/in General Business Insurance, Video

In any project, it’s important to make sure you have the proper insurance to protect yourself and all parties involved.

Let’s say you’ve just hired a plumber. Before he gets to work, you want to make sure the plumber’s insurance coverage will cover any potential damage to your house. If you are listed as an additional insured, their insurance will pay for any damages that occur.

But how do you find out what coverage the plumber has in the first place? Contracts need to be reviewed so that insurance brokers can know the terms and scope of their requirements. This is where certificates of insurance (COIs) come into play.

Every contract with a vendor or a customer will have an indemnity or insurance section of what they want to see from you as far as insurance is concerned. This includes documents that extend your policy to cover them. Those requirements are contractually driven, which means a certificate is necessary.

Let’s have a professional detail of the complexities. 

In this video, Brenda Jo Robyn, founder of Competitive Edge Insurance, will answer everything you need to know about COIs.

What is a Certificate of Insurance?

A Certificate of Insurance (COI) is a snapshot in time of insurance coverages for an insured.

According to Investopedia, a certificate of insurance is a document “issued by an insurance company or broker [that] verifies the existence of an insurance policy.”

“Small-business owners and contractors typically require a COI that grants protection against liability for workplace accidents or injuries to conduct business.”

A COI gives a summary of what coverages someone has, whether it be general liability, workers’ compensation, or property. A COI can also include a description of coverages that might be there or attached; such as additional insured status or waivers of subrogation.

How Often Do You Need to Update a COI?

Any time there is a change in the policy in terms of limits of insurance and/or coverage dates.

Another time you might need an updated certificate of insurance is if there’s a new project or project location for a particular client.

Why Do We Need a Copy of Your Contract to Issue a Certificate?

In terms of contractors, projects, or building owners, you spend a lot of time and effort trying to win work. The last thing you’re looking at is insurance conditions. Insurance conditions are most often reviewed last—if at all. 

When this is the case, conditions that are additional in cost can pop up. These conditions are often impossible to obtain and can impede your ability to sign contracts and get work at all.

A Real-Life Example

Here’s a real-life example of why COIs are so important from Brenda Jo Robyn, founder of Competitive Edge Insurance.

“One of my contractors sent me a certificate that they needed for a new job.” It was a huge job: an HOA, residential complex of 70 buildings with 40 units in each building. 

“So they sent the request over,” says Brenda Jo. “We completed it, sent it back, and all of a sudden there’s an email back saying, ‘Hey, can you comply with these? The certificate doesn’t share that the insurance covers that we require.’”

“The party then sent us a sample certificate that they wanted to be done. This sample required two million more in limits than my client had, [and] they weren’t going to be let on the project as a result.” This was an $18,000 mistake.

Brenda Jo continues. “They signed the contract [and] the requirements were in the contract, [but] they only sent me the request for a certificate of insurance.”

In this example, if Brenda Jo would have been able to see this requirement beforehand, the terms could have been either negotiated or the necessary coverage could have been obtained.

Brenda Jo reminds us, “you know, every contract is negotiable.”

On the topic of contracts, are you interested in learning about contract bonds? If the answer is yes, read on here.

https://compedgeins.com/wp-content/uploads/2021/11/Certificates-of-Insurance-COIs-What-You-Need-to-Know.png 628 1200 Brenda Jo Robyn https://compedgeins.com/wp-content/uploads/2020/11/logoweb.png Brenda Jo Robyn2021-12-19 07:00:002021-11-30 14:33:08Certificates of Insurance (COIs): What You Need to Know

What’s the Difference Between a Surety Bond and a Contract Bond?

November 28, 2021/in Bonding, Construction, High-Risk Insurance, News, Video

The world of insurance can be complex—and for contractors, work can be dangerous, too. As a contractor, the question of what insurance you need to stay protected is likely to come up.

So, for starters: What’s the difference between a surety bond and a contract bond? Which do you need to stay safe?

Today, Brenda Jo Robyn, founder of Competitive Edge Insurance, is here on camera to give us the spiel; including the differences, benefits and risks, and what you need. Let’s dive in.

What is a Surety Bond?

There are three parties involved in a surety bond, including:

  • The surety company
  • The principal or the insured
  • The obligee

A surety bond is a contract where one party (the surety company) guarantees the performance of certain obligations in a contract of the second party (the principal or the insured) to a third party (the obligee).

When Do You Need a Surety Bond?

Surety bonds are needed for most licenses in the state of California and other states as well. Some examples of who might need a surety bond include:

  • Contractors
  • Real estate companies and agents
  • Financial institutions
  • Janitorial personnel

Why Do You Need a Surety Bond?

Licensed bonds are required in many states to do business, and are put in place by the state to protect the consumer.

The insured, or principal, purchases this bond in an amount prescribed by the state to pay the obligee (the state at this point), in case there’s a claim against someone’s license.

What is a Contract Bond?

A contractor performance bond is a written contract that guarantees the performance obligations under a contract.

Contractor performance bonds are used frequently in the construction industry but are also sometimes used in manufacturing and supply chains as well.

When Do You Need a Contract Bond?

The short answer: It depends! Contractors can be required to have a contract bond for different parts of the process when they’re bidding for a job, according to Brenda Jo.

What Is a Bid Bond? When Do You Need One?

Oftentimes, a bid bond is required to submit a bid for a project. Typically, these bids are in the public arena for states or cities. For example, the Department of Forestry.

“A bid bond lets this entity know that the contractor can provide a payment and performance bond should the job be awarded to them,” says Brenda Jo.

“If the contractor is awarded the project and the contractor decides that they cannot fulfill the obligation, the bid bond helps to pay for the difference in price that it costs to get a new contractor in.”

This leads to the next kind of bond couplings, which is the payment bond and the performance bond. Let’s discuss.

Payment Bonds and Performance Bonds

What is a payment bond? What about a performance bond?

A payment bond is a bond that guarantees payment for subcontractors and payment for materials.

A performance bond, on the other hand, covers the ability of the contractor to perform and finish the job as per contract requirements. If the contractor doesn’t perform, the contract bond kicks in and helps to pay for the completion of that performance.

infographic showing the difference between a surety bond and a contract bond

A Final Word

An important note: For all bonds mentioned, if they’re used and there’s a claim on a bond, the contractor who purchased the bond has to pay that back, says Brenda Jo.

This considered, surety companies look for strong financials in a company, including:

  • Assets
  • Lines of credit
  • Letters of credit

Surety companies look for anything that creates a picture that says you’re worthy of having a bond put into place—because if the bond is utilized and pays out, they need to know that the purchaser of the bond can pay that money back.

Bring in The Experts

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 our team today.

Additionally, for those interested in learning more, choose between our articles on the key differences between general contractors and construction managers and the difference between payment and performance bonds.

https://compedgeins.com/wp-content/uploads/2021/10/Whats-the-Difference-Between-a-Surety-Bond-and-Default-Insurance.png 628 1200 Brenda Jo Robyn https://compedgeins.com/wp-content/uploads/2020/11/logoweb.png Brenda Jo Robyn2021-11-28 07:00:002022-05-27 09:45:25What’s the Difference Between a Surety Bond and a Contract Bond?

Why is Phishing the #1 Thing Killing Small Businesses?

November 21, 2021/in Cyber Insurance, News, Video

What is phishing? And no, we’re not talking about the activity of catching fish for food or sport. Phishing, spelled with a ‘ph,’ is an ever-growing concern defined as the “technique for attempting to acquire sensitive data, such as bank account numbers, through a fraudulent solicitation in email or on a web site, in which the perpetrator masquerades as a legitimate business or reputable person.”

But why is phishing especially harmful to small businesses? Why are they being targeted? We have all the answers and more, thanks to Brenda Jo Robyn, founder of Competitive Edge Insurance.

So, welcome to ‘Why is Phishing the #1 Thing Killing Small Businesses?’ We hope you stick around to learn something new, including how you might protect yourself as a small business owner.

What is Phishing?

Today, phishing can come in a variety of forms. According to Brenda Jo, phishing is “any activity that compromises your organization’s security… It can come in the way of an email or a text or an application.” These applications that retrieve your data can be on your computer, phone, even your iPad. Scammers target you and ask questions to get your information in really creative ways.

An Example of Phishing

Let’s say you receive an email that you’ve been expecting from Bank of America. Why not just ignore it? Well, because…

“It looks like you really should open it. [After all,] it’s a secure document for the bank you’ve been working with lately,” says Brenda Jo. The culprits know you’ve been waiting for this specific type of document to arrive in your inbox because they’ve been screening your emails. 

“So, now they have captured that you’re working with this bank and now this bank is sending you a secure document that you need to open… You open it out of their Google docs, and all of a sudden, bam, you got a worm or a virus on your computer,” says Brenda Jo.

“That’s going to either start going through all your files and looking for stuff. They’re gonna track your emails or they’re going to track your keystrokes.”

Phishing is huge right now. Brenda Jo continues. “I can’t stress enough how important it is to make sure that your computers and data is secure from others. There are a lot of what are called ‘bad elements’ or ‘bad actors’ out there that are trying to steal your data… Right now data is money. And the more data you have, the more money you can make.”

How Dangerous is Phishing for Small Businesses?

The statistics speak for themselves. Right now, 60% of small companies that have been hit by a cyber attack are closing their doors within six months. The reason? It is very costly to come back from a cyber attack.

Most small businesses don’t have the collateral, backing, or lines of credit to make themselves whole again after an attack of this caliber.

How Can Small Businesses Protect Themselves from Phishing?

Training

Focus on training.

  • Training your employees: (For example, they need to know how not to send excel spreadsheets emails! 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.)
  • Training IT: They need to know what to look for.

Due Diligence

Due diligence is the bare minimum. Document your training and go over it on a weekly or quarterly basis. Next, ensure your IT systems are multi-layered. This means not only having firewalls on your computers and servers but also helpful, educated IT personnel available.

Develop a Planned Crisis Response

A planned crisis response includes a cyber liability policy. As Brenda Jo says, “one of the things that kills the small business is the lack of PR or response to their clients and/or vendors when a phishing attack occurs and data has been compromised.”

“It’s very expensive to go and let everybody know, ‘Hey, your information was taken and here’s the year’s worth of credit monitoring’”—especially if the data is health-related. 

You might face both federal fines as well as fines from the state government. The costs add up, and that’s where cyber liability comes in to help.

Reach Out to Competitive Edge Today

As you look at your coverage, think of the potential for cybersecurity issues, evaluate your tolerance for risk, and take the time to look at your policies in detail. As experts, we at Competitive Edge can tell you where you are vulnerable and what the risk might cost you. It is then your decision to accept the risk or mitigate it with coverage. You know what we would do.
Interested in learning more about the dangers of ransomware and why the need for cyber liability coverage is increasing? Read on in cyber liability coverage for the new era of ransomware.

https://compedgeins.com/wp-content/uploads/2021/10/Why-is-Phishing-the-1-Thing-Killing-Small-Businesses.png 628 1200 Brenda Jo Robyn https://compedgeins.com/wp-content/uploads/2020/11/logoweb.png Brenda Jo Robyn2021-11-21 07:00:002021-11-08 12:57:17Why is Phishing the #1 Thing Killing Small Businesses?

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November 8, 2021/in Construction, High-Risk Insurance, News, Video

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https://compedgeins.com/wp-content/uploads/2021/04/Construction-Feature-Image-scaled.jpg 1706 2560 Brenda Jo Robyn https://compedgeins.com/wp-content/uploads/2020/11/logoweb.png Brenda Jo Robyn2021-11-08 11:25:002021-11-08 11:29:52What to Expect from Changing Contractor Costs
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