Group Captives Lower Your Cost of Insurance

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With rising inflation, companies are under increasing pressure to control the cost of their commercial insurance premiums. A member-owned group captive insurance program is an excellent alternative to traditional insurance.

What is a Group Captive 

A group captive is an insurance company that is owned by the members. As stakeholders, they have control over how their risk is managed. Unlike traditional insurance, where the insurance company retains the profits, in a group captive, the member company gets the profit back in the form of dividends. The result is a more cost-effective and efficient approach to managing risk.

Top Five Benefits of a Group Captive

Control Premiums
With effective risk management, you have the potential to earn back 60-70% of your premiums. With group captives, premiums are solely based on your company’s 5-year loss history, giving you more control over your insurance costs. In traditional insurance, you are in a pool with other companies, some much riskier with high claims, and you are subsidizing their insurance premiums.

Protection from Market Fluctuation
Market fluctuations and hard markets are often caused by increased claims and decreased revenue for insurance companies. Group captives are owned and managed by their members with a strong focus on safety and offer insulation from these market fluctuations. This is especially important in a hard market where premiums are high, and coverage options are limited, making it challenging for companies to find affordable coverage and maintain their insurance programs.

Greater Control Over Claims Management
In a group captive, member-owners can participate in claims administration, which is focused on driving claims to closure and lowering costs. The third-party administrator (TPA) manages the claims process on your behalf while taking into account your input. This gives your company greater influence over handling claims and the ability to detect and deny fraudulent claims.

Safer workplace
Risk management is a top priority in a group captive as companies recognize the link between their loss ratio and insurance premiums. With premiums based on only the company’s 5-year loss ratio, those who minimize risk and focus on claims prevention and management have a safer workplace and enjoy significantly reduced premiums.

Increased control and transparency
As a member company, you have one seat on the Board of Directors with one equal vote in the management of the group captive. This means you have a say in how the captive is run and your insurance coverage is managed. As a voting member, you’ll benefit from increased control and transparency, with more significant input into decision-making and a clearer understanding of how your insurance coverage works.

Is Your Company A Good Fit For a Group Captive

To determine if a group captive is a good fit for your company, we can do a cost-benefit analysis that includes a 5-year historical look back. We can demonstrate how the performance of a group captive compares to your traditional insurance program. Here are some other factors to consider. 

  • Does your company prioritize risk management?
  • Has your company demonstrated a history of financial stability and a willingness to invest in its success?
  • Do your premiums for workers’ compensation, commercial auto, and general liability policies exceed $150,000?

By considering these factors, you’ll better understand whether a group captive may be a good solution for your insurance needs.

Conclusion

In today’s world, running a successful business is about staying ahead of the competition. That’s why it’s crucial to have a long-term insurance strategy that protects your current needs and changes to address your future needs. A group captive is an excellent way to take control of your insurance costs. With our experienced team by your side, we can help you develop an insurance strategy that meets your business needs and enables you to achieve your long-term goals.

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Key Takeaways from IBM’s Security X-Force Threat Intelligence Index 2023 

The IBM Security X-Force Threat Intelligence Index 2023 is built around one fundamental concept, know the threat to beat the threat.

Cybercriminals follow the money, and this report offers business leaders insightful analysis to help protect their organizations from cyberattacks. From understanding attackers’ tactics to getting actionable insights on protecting their company, we will provide you with key takeaways and proactive steps from the IBM report to keep you ahead of the threat actors.

What is the IBM Security X-Force Threat Intelligence Index

IBM Security X-Force is a team that compiles billions of data points to provide the latest research tracking attack trends, impacts, and vulnerabilities affecting companies globally. Compiled with nearly 30-years of data, this report is full of actionable information you can use to proactively manage the security of your environment.

Key Takeaways

  1. Manufacturing was the most attacked industry in 2022, accounting for 58% of all incidents. A low tolerance for downtime makes this industry a prime target and particularly lucrative. 
  1. One of the latest tactics discovered is a disturbing trend of attackers targeting the customers and business partners of the breached organization. By bringing them into the mix, they leverage the stolen data from the threat actor to increase pressure and psychological impact.
  1. E-mail thread high-jacking attempts doubled from 2021 to 2022, with attackers using compromised e-mail accounts to reply within ongoing conversations posing as the original participant.
  1. 2022 saw a surge in backdoor activity which allows remote access to systems. Backdoors were deployed in one in five incidents because they can be sold at auction for $2,000 to $10,000. 
  1. Time to ransom dropped a shocking 94%, from two months in 2019 to under four days in 2021, accounting for 17% of attacks. Ransomware locks down critical systems until the money is paid, which differs from extortion which is the threat of releasing the information they hold.
  1. At 27%, extortion was the most common impact on companies, with 30% of those incidents occurring in the manufacturing sector. This trend is expected to continue with threats growing more aggressive because it is highly profitable. 
  1. Extortion is evolving to include the threat actor contacting your clients and business partners to inform them that you’ve been hacked and they have information about them to pressure you to pay. Experimenting with enhanced notifications will likely continue to pressure the victim to pay.
  1. Phishing has been the preferred attack method since 2019, and it continues to be the #1 way into a company at 41%. Phishing attachments are used 62% of the time, followed by links a third of the time. Why? There will always be someone that will click on something they shouldn’t. It’s cheap, easy, and it works.
  1. Targeting credit card information dropped from 61% in 2021 to 29% in 2022. Personally identifiable information (PII) is more profitable.
  1. Legacy exploits are still doing the job, with 26% of exploits having known vulnerabilities. While older malware infections such as WannaCry continue to exist and spread, the percentages have dropped in recent years due to patching.

The trend shows a growing gap between the number of vulnerabilities and weaponized exploits. Two years ago, one-third of vulnerabilities were exploited. Today this has dropped to about one in four.

Prepare for the Future

Armed with the knowledge of insights into the threat landscape, companies must put the learning into practice by identifying and mitigating risks to prepare for the future.

Manage your assets
The first step in a data breach prevention strategy is inventorying your data. Identify what type of data you have and what data is critical to your business. Remove old data and regularly review and update your data inventory. 

Know your adversary
Knowing which threat groups target your industry, geographical location, and your company will help you target the best security measures.

Manage visibility
Once you’ve identified your assets and who might want to steal them, you are in the best position to develop a detection and response strategy. A managed service provider can help with strategy and execution.  

Challenge assumptions
Assume that attackers are already in your network. With this assumption, planning changes from how to keep them out to how to stop them once they’re in your system. Be proactive and assume a worst-case scenario approach.

Be prepared
Have an incident response plan ready to go and put it to the test. Simulate attacks to find gaps and educate your employees on what to do in case of an incident. All divisions of the company should be included, not just the ones involved with IT. Cybersecurity is a journey in a constantly changing environment, not a destination.

Protect your company, clients, employees, and your reputation

Cyber-attacks are becoming increasingly sophisticated and can seriously damage your company’s finances, employees, customers, and reputation. A cyber liability policy ensures that you will have immediate access to the best high-tech attorneys, forensic IT specialists, and PR firms when you need them most. And you can react with speed which is a critical defensive strategy. 

In Conclusion

In conclusion, the IBM Security X-Force Threat Intelligence Index 2023 stresses the importance of proactive measures to mitigate cybersecurity risks. By taking steps outlined in the report, businesses can prepare for the future and protect their assets, clients, employees, and reputation. Additionally, protecting your company and reputation with a cyber liability policy can provide peace of mind and ensure swift action in the event of an attack. With cyber-attacks growing increasingly sophisticated, it’s crucial to stay vigilant and take the necessary steps to safeguard your organization.

For a complete copy of the IBM Security X-Force Threat Intelligence Index 2023, please go to https://www.ibm.com/reports/threat-intelligence. 

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Which type of insurance does your business need?

Figuring out which types of insurance coverages are right for your company isn’t always easy. Here are four basic types of insurance policies that most businesses need to have —even the smallest of companies — and four other coverages that many business owners need but don’t realize they do:

Property insurance. This type of insurance covers buildings as well as personal property such as office furniture, inventory, computers and machinery. It’s basic coverage that nearly all businesses need.

Liability insurance. Having enough liability coverage is important for a growing company. Any business can face a legal claim that could be financially devastating. A client could sue after a fall in your office. A customer could file a lawsuit claiming a product is defective. Liability insurance can help a business prevent a financial disaster in the event of a lawsuit.

Commercial auto insurance. Cars driven for your business should be covered under a separate, commercial auto insurance policy.

Workers compensation insurance. Nearly all states require businesses that meet certain size thresholds to have workers compensation insurance in the event an employee is injured or dies on the job.

Depending on the type and size of the business, you may need additional coverage. Here are four types of coverage that business owners often don’t realize they need to protect themselves:

Cyber liability insurance. One study found that the average cost of a cyber attack on a company is $200,000; many attacks are more costly. Small and medium-sized companies are increasingly at risk for both attacks and devastating legal claims as a result of an attack. All businesses need to take steps to prepare for and help prevent a cyber attack and consider purchasing coverage in the event one does happen.

Employment practices liability. EPL is designed to protect companies in the event of a sexual harassment, discrimination, wrongful termination or breach of employment contract claim or any of a number of other claims made by an employee or former employee. The more employees you have, the greater the risk of a lawsuit.

Professional liability (also known as errors and omissions). Many different types of business owners need E&O insurance coverage. Businesses providing a service or advice have a unique type of liability exposure. Many E&O policies are designed for specific types of professionals, such as physicians. accountants, engineers, architects and attorneys.

Employee benefits liability. EBL is coverage for businesses that offer health insurance and other benefits. It protects them from errors and omissions that occur when employee benefit plans are administered by a company’s human resources employee(s). These types of errors happen more than you might think.

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Insurance needs for your growing business

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Is your company growing? That’s great news. Just make sure your insurance policies keep up! Here are some tips for making sure you don’t end up underinsured: CEO owner leader company staff member portrait, possibly finance, accountant, manager

Revisit your Business Owner’s Policy. If you have a fast-growing company, your Business Owner’s Policy, or BOP, can get outdated quickly. Have you added new employees or equipment? Have you changed the nature of your business or expanded into different types of products or services? Did you purchase your own building? It’s time to review your BOP, which is your first line of defense against a number of business risks.

Keep up with Liability Insurance. As your business expands, you’ll want to make sure you have enough liability coverage. This type of insurance takes many forms. There’s employment practices liability, which covers claims arising from your employees and professional liability insurance, designed to protect you against claims made by clients or customers. Review all potential sources of liability, such as when your employees are driving on company business.

Don’t forget Property Insurance. This type of policy covers damage to your business premises, equipment and inventory due to events like fire, theft or vandalism. It can also provide coverage for lost income if your business is forced to close temporarily due to property damage.

You might need Product Liability Insurance. If you manufacture or sell products, this type of insurance can protect you from claims related to injuries or damages caused by those products. Even if you take all the necessary precautions, there’s always a risk that something could go wrong with one of your products. Product liability insurance can help protect your business in the event such an incident occurs.

And, of course, there’s workers’ compensation insurance. As a small business, one of the most important insurance policies you can have is workers’ compensation. This type of insurance will help to protect your business in the event that an employee is injured while on the job. Workers’ compensation can help to cover medical expenses and lost wages, as well as provide death benefits in some cases. If you do not have workers’ compensation insurance, you may be held liable for any injuries or accidents that occur at your business, which could end up costing you a lot of money.

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Our value-added services help protect your business

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Our business is protecting your business. We have the expertise to ensure business assets are protected.

We also know that risk management doesn’t stop at insurance. Here are some to consider:

  • Safety Programs: A safe workplace is a successful workplace, and safety is everyone’s responsibility. The best businesses know that they have to make safety training a priority, and our safety program service allows you to customize safety materials that can create a safer, healthier workplace that benefits everyone.
  • OSHA Compliance: OSHA’s standards and practices can change quickly, and our compliance services help you stay on top of the must-know information to be able to prepare for and pass OSHA inspections successfully to help keep your business running with no downtime.
  • Fraud Protection: We can help you learn what policies and procedures your business needs to protect itself from fraud and walk you through the process every step of the way.
  • Communication and Connection: We offer access to extensive business databases that can help you understand and mitigate risks, shape policy and strategy, and communicate to employees with newsletters, posters and more.

As your partner in business, this is just a handful of additional ways we can help your organization beyond insurance solutions. See our other risk management solutions and value-added services here.

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We offer much more than business insurance

Let’s face it: Insurance is a vital part of running a successful business. But it’s definitely complicated and often frustrating. An insurance policy is a complex contract with difficult-to-understand fine print, including coverage limitations and exclusions. As a result, many companies are underinsured — leaving the future of their organizations to chance — or overinsured and wasting precious money that could be used elsewhere in the business.

That’s why your business needs a trusted advisor and not just a commercial insurance salesperson. You need a trusted partner who can guide you through the process of making the best business insurance decisions and controlling costs: someone who can help with risk management; an advisor who can provide sound advice about business decisions that could affect your insurance program; an expert who can help you manage risks and avoid unnecessary risks while growing your company.

At Accurate Protection, we’re all those things and more. We’re here to help you identify and analyze your company’s unique business risks; develop an appropriate risk mitigation/management plan and design (this is a fee based service,) implement and monitor a comprehensive insurance program to address any exposures. The typical insurance broker can sell you insurance and handle renewals and claims, but many provide no additional resources or guidance to help with risk management.

Our team can help your business better manage its workers’ compensation program, resulting in lower costs and better outcomes for injured workers. We also offer Work Smart, an incredible education program that helps business owners create and implement risk mitigation programs covering more than two dozen topics, from hiring to pre-incident planning, Our customers have access to a library of over 1,000 downloadable articles in both English and Spanish, 24/7 online claims reporting, legislative updates, an online OSHA reporting system, tools to create a customized safety manual and more. We’ll talk to you about which risks you need insurance for, and which you may want to handle by self-insuring.

Another way we’re different: We take the time and ask the right questions to get to know you and your business, which helps us to identify risks that you or a traditional insurance broker may otherwise not notice. Then we can help your organization address them in a best-in-class way. This approach allows us to communicate with underwriters about your business and its risk management strategies, controls and processes, which can result in the best coverage and pricing. Get to know more about us! Give us a call: (404) 907-2121 x701.

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Is your business underinsured?

Small businesses face a variety of risks in today’s world. Unfortunately, many companies aren’t effectively managing those risks. Of the nearly 32 million small businesses nationwide, for example, it’s estimated that 75% of them have either not enough commercial insurance or no coverage at all.

The official definition of a small business is a company that employs fewer than 500 people. Research shows that the smaller the company, the less likely they are to have adequate insurance coverage.

The top claims made by small businesses include burglary/theft and damage to property caused by perils such as water, wind, hail, fire and freezing temperatures. Another top source of claims: Legal claims made by customers, including those injured at the company’s place of business. A BOP, short for Business Owners Policy, combines vital business property and liability coverage into one convenient and affordable policy and can be an ideal solution for home-based businesses and other small firms. As a business grows, however, its insurance needs change. Many growing companies don’t keep up in the area of insurance and risk management.

Business continuity is yet another area in which small businesses fall short. Nearly three-quarters of new businesses survive the two-year mark and half survive the five-year mark. But only one-third of all companies remain in business after 10 years. One of the biggest sources of business failures is a lack of planning for the unexpected. Businesses that have a plan for unexpected events have a much higher survival rate than those that don’t.

According to the U.S. Small Business Administration, 40 percent of businesses never reopen after a disaster. Most of those that go out of business did not have enough insurance, the right coverage or any coverage at all. It’s estimated that 75% of businesses in the United States are underinsured in some way by 40 percent or more, according to international data analytics firm Marshall & Swift.

We understand that you have your hands full running your business. As licensed insurance professionals, consider our team at Accurate Protection a part of your key advisory team. We’ll partner with you to perform a thorough analysis of your company and its unique risks and find the best solutions for managing those risks. With Accurate Protection, you’ll get an insurance program specifically tailored to your needs, with the right amount and type of coverage, at an extremely competitive rate.

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Which type of insurance does your business need?

Figuring out which types of insurance coverages are right for your company isn’t always easy. Here are four basic types of insurance policies that most businesses need to have —even the smallest of companies — and four other coverages that many business owners need but don’t realize they do:

Property insurance. This type of insurance covers buildings as well as personal property such as office furniture, inventory, computers and machinery. It’s basic coverage that nearly all businesses need.

Liability insurance. Having enough liability coverage is important for a growing company. Any business can face a legal claim that could be financially devastating. A client could sue after a fall in your office. A customer could file a lawsuit claiming a product is defective. Liability insurance can help a business prevent a financial disaster in the event of a lawsuit.

Commercial auto insurance. Cars driven for your business should be covered under a separate, commercial auto insurance policy.

Workers compensation insurance. Nearly all states require businesses that meet certain size thresholds to have workers compensation insurance in the event an employee is injured or dies on the job.

Depending on the type and size of the business, you may need additional coverage. Here are four types of coverage that business owners often don’t realize they need to protect themselves:

Cyber liability insurance. One study found that the average cost of a cyber attack on a company is $200,000; many attacks are more costly. Small and medium-sized companies are increasingly at risk for both attacks and devastating legal claims as a result of an attack. All businesses need to take steps to prepare for and help prevent a cyber attack and consider purchasing coverage in the event one does happen.

Employment practices liability. EPL is designed to protect companies in the event of a sexual harassment, discrimination, wrongful termination or breach of employment contract claim or any of a number of other claims made by an employee or former employee. The more employees you have, the greater the risk of a lawsuit.

Professional liability (also known as errors and omissions). Many different types of business owners need E&O insurance coverage. Businesses providing a service or advice have a unique type of liability exposure. Many E&O policies are designed for specific types of professionals, such as physicians. accountants, engineers, architects and attorneys.

Employee benefits liability. EBL is coverage for businesses that offer health insurance and other benefits. It protects them from errors and omissions that occur when employee benefit plans are administered by a company’s human resources employee(s). These types of errors happen more than you might think.

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