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The Murphy Insurance Blog

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News, updates and useful tips about insurance products and the insurance industry. We also provide insights on community events, local news and information that affect your everyday life. Enjoy!

home based business

What you need to know if you work from home

home based businessWhether you’re running a part-time, seasonal or full-time business from your home, you’ll want to carefully consider your risks and insurance needs. Starting a business—even at home—can be a challenging venture, and having the right insurance can provide a financial safety net and peace of mind.

Your insurance choices should, in part, be based on the type of business you operate. For instance, if you’re a sole practitioner home-based accountant, you’ll have very different insurance needs than your neighbor who runs a childcare business. When considering insurance for your business, here are some questions to ask yourself:

  • What type of business do I run? What are the potential risks faced by your type of business?
  • What is the value of my business property? Do you have expensive equipment, such as cameras or commercial printers? Do you stock valuable business inventory, such as gemstones?
  • Does my business have employees?
  • Do customers or contractors visit my business at my home?
  • Do I use my car or other vehicles in the course of my business operations?
  • Does my business store customers’ financial and personal information on a computer or through a cloud computing service?

The answers to these questions will guide which types of insurance to purchase—and how much coverage you’ll need. For your home-based business, the main types of insurance to consider include the following:

Property and liability insurance

Depending on the nature of your home-based business, you’ll need insurance to protect the value of your business property from loss due to theft, fire or other insured perils. You’ll also need liability protection to cover costs if someone is injured as a result of visiting your business or using your product or service. Your homeowners insurance may provide some protection for your business, but it may not be sufficient. Options for property and liability insurance for home-based businesses include:

  • Adding an “endorsement” to your homeowners policy
  • Stand-alone home-based business insurance policies
  • A Business Owners Policy—or BOP—which combines several types of coverag

Business vehicle insurance

Your personal auto insurance may provide coverage for limited business use of your car. But if your business owns vehicles or your personal vehicle is primarily used for business purposes, you’ll need business vehicle insurance.

Workers compensation insurance

If you have employees, you’ll want to strongly consider purchasing workers compensation insurance to cover costs if an employee is hurt on the job. Workers compensation insurance provides wage replacement and medical benefits to employees injured in the course of employment, in exchange for relinquishing the right to sue the employer. In some states, workers compensation insurance is mandatory, so be sure to check your state’s workers compensation website for local requirements.

Other types of insurance may be suitable for your home-based business as well. Your insurance professional can help you evaluate your needs and select insurance to meet your budget.

Source: Insurance Information Institute

Cyber Crime Risk

Cyber security and the risk of a data breach are greater than ever.  Yet, many businesses have fully considered the increased cyber security risk. The coronavirus pandemic has changed how almost every company operates and accelerated the landscape of cyber risk:

  • Many companies have adopted work-from-home policies resulting in more remote access to company systems and data via laptops and cellphones. In some cases, employees may be using their own personal devices to connect or conduct company business. 
  • Electronic meetings via Zoom and other platforms to conduct company business have created additional opportunities for hacking.
  • Businesses have changed their operations including, in some cases, expanding e-commerce offerings and payment methods. 
  • Stress on IT infrastructure and resources from both a systems and staffing perspective.

Increasing Cyber Risk

Due to the growing reliance on technology, cyber risk has long been considered a top risk for organizations in coming decades; however, with the arrival of the coronavirus, many companies are realizing that cyber concerns, which seemed years off, have become a reality within a matter of weeks...and the challenges are accelerating.  
  • The increase in number of people working remotely has increased the number of targets for cyber attackers using phishing scams and malware on the newly remote workforce. 
  • Fast deployment of work-from-home may result in system access vulnerabilities and increases the risk of lost devices. 
  • Changes in operations requiring expanded online functionality including payment and other e-commerce features has potential liability concerns for security of customer data.

Despite the challenges of this rapid change, many cyber risks are known; therefore, they can be anticipated and with proper planning mitigated through prevention efforts. 

In addition to reviewing data security protocols and increased training. More and more businesses are now purchasing Cyber Liability insurance as part of their risk management plan. Cyber Insurance can help businesses to be financially protected for instances when a data breach or other cyber risk occurs despite their best efforts.   

Cyber Risk and LiabilityTwo key areas of risk

Increased phishing and malware attacks

Put your employees on alert. Law enforcement and cyber experts have reported dramatic increases of cyber criminals using the coronavirus as an opportunity to send phishing emails and spread malware attacks, which if successful can collect login credentials, account numbers, and other sensitive personal and business information.

The best line of defense is training staff on how to identify red flags of social engineering phishing scam and to follow proper protocols if they receive suspicious communications. Here are links to two helpful resources that can help you and your staff learn how to identify scams.

Systems and confidentiality exposures

With employees working from home, the exposures increase exponentially especially if prior to the pandemic work-from-home wasn't typical for your organization. Also if your business has changed how it operates and conducts customer transactions, it's important to consider that these new activities are being properly managed to address security concerns. Assessing your company's preparedness and protection in the face of cyber and data risks requires considering security from a variety of angles.  Here are just a few to consider:

  • Are employees remotely accessing your network using company issued or personal devices?
  • Are you using security software to help detect threats, and is your system data backed up separately from your network?
  • Have you established procedures for storage and access of sensitive company/customer information?  Have you maintained security with remote access?
  • Have you established procedures to ensure that sensitive information is secure if using Zoom or other online meeting tools?
  • Have you changed how your business provides services and conducts transactions/payments such as online payment that could impact storage and protection of private personal information?

Depending on how you answered these questions you may feel confident that you are doing all you can to protect from cyber risks or you may find that you have areas that require improvement.
 

How Cyber Liability insurance helps protect your business

cyber securityCyber Liability insurance protection addresses the first- and third-party risks associated with e-business, the Internet, networks and informational assets. While some general insurance liability policies may offer limited protection in the event of a data breach, typically the coverage provided isn't sufficient for a significant cyber liability event. The category of Cyber Liability includes security breaches; data theft; virus transmission; privacy issues; copyright, trademark and intellectual property infringement; libel or any other issues that first parties can pass to third parties via the Internet. Some of the types of claims that may occur include:

  • Accidental release of confidential customer information
  • Spreading a virus into a customer’s computer system
  • Theft of customer’s credit card or banking account numbers
  • Identity theft resulting from data breach
  • Denial of service attack hacking
  • Electronic data extortion or destruction
  • Interruption of business operation due to system being down
  • Webmaster uses another site's content in site development


While the exposures outlined above are not all inclusive, and no policy covers every risk, Cyber Liability insurance can make all the difference in helping your business avoid a crippling financial impact if a system or data breach occurs despite your mitigation efforts. To learn more about getting Cyber Liability coverage for your business, contact us. We look forward to helping ensure your business has the protection in needs especially during these challenge times of accelerated risk.

 

checkup review

Insurance CheckupYou bought your insurance...auto, home, business, life, etc., and know you’re covered. From a money stand point, you’re good with the premium. So, why bother talking to your insurance representative unless there is something specific to take care of? 

  1. Changes in your life can impact your needs and you may not realize it;
  2. Insurance companies often come out with new coverage options that you should consider.

Life changes that typically require an insurance change

  • Change in use of your home or auto – business use, rent a room, Airbnb, driving for Uber, Lyft, etc
  • Change in drivers having regular access to your vehicle - make sure everyone is covered
  • Change in marital status or living arrangements - make sure everyone and all possessions are covered
  • Change of jobs - change of life or disability benefits, starting a business, company car, etc.
  • Birth or adoption of a child - reconsider life insurance needs
  • Hiring a nanny or other home worker - workers compensation

     
        learn more > 10 questions to help you assess changing insurance needs

Options you might want to consider or reconsider

Auto

  • Automobile accident forgiveness
  • Disappearing deductible
  • Transportation Network Company driver endorsement
  • Umbrella extension of underinsured and uninsured motorist coverages

Home

  • Home service line coverage
  • Oil heat fuel remediation coverage
  • Optional higher limits on mold protection
  • Ordinance or law coverage - pays for building code upgrades required after a loss


At Murphy Insurance, we don’t believe in “set it and forget it” when it comes to your insurance protection.
That’s why we send out information by newsletter, share information via our blog and social media, send individual notices and other communications. We work diligently to stay in touch about specific issues you should consider or simply when we haven't spoken in a while.

Ultimately, it takes you reaching back out to us to complete that loop and say “Yes...I want to talk”. Without a conversation, we can’t know what might have changed that requires modification of your current insurance. If anything above indicates we should talk, call us, send us an email, or stop by. Just don’t wait too long because you never know when something can happen and we want your protection to be right.

workers' compensation

Workers’ compensation insurance protects employees from financial hardship after they suffer injury or illness on the job. It pays for direct medical expenses and wage replacement while the employee is unable to work due to the injury. In Massachusetts, all organizations that have employees are required to purchase it, whether they have just one part-time employee or if they have employees working in other states. (If you do have employees in several states, you may need to purchase additional coverage as laws vary among states.)

workers compensationIn Massachusetts, the Division of Industrial Accidents manages the workers’ comp system. It establishes codes for every job type and sets a corresponding base rate. Your company’s base premium is calculated by multiplying your payroll in a given class code by the state-set rate. This amount is then multiplied by your company’s actual claims experience to establish your premium.

The two factors that determine claims experience for businesses are frequency of claims, measured by the Experience Modification Factor (Mod), and severity of claims, measured by the All Risk Adjustment Program (ARAP). The claims history used to calculate these metrics is the three oldest of the prior four years. For example, a 2019 policy looks at claims experience for 2015, 2016 and 2017.

When you’re looking for a provider of workers’ compensation insurance, take these three factors into consideration:

1. Claims Management 

Efficient claims handling keeps claim costs down and reduces any negative impact to your Mod and ARAP. Some providers offer guidance for developing a “return to work” program, which can help an injured employee return quicker. For instance, an employer may have or may create a position with less rigorous physical requirements to allow an employee to return earlier. This helps reduce claim costs. Choosing a provider that offers such assistance can be valuable.

2. Discounts

Some insurance companies offer a scheduled deviation from the state set workers’ comp rates, which provides a guaranteed discount for the policy period. Other companies may offer a dividend plan, through which the claims experience and discount amount are calculated when the policy year is over. Such dividends are not guaranteed and are generally based on the individual’s experience as well as the overall performance of all policyholders participating in the dividend plan.

3. Proper Classifications

Using proper job classifications for your workforce is essential. While overpaying due to wrong class codes is always a concern, underpaying can be equally problematic since an audit may result in a large premium adjustment. Working with a knowledgeable agent helps you avoid problems. Policies are audited at the end of each policy term, and a premium charge or credit is made if actual payrolls differ from the estimates used to calculate the original premium.

Workers’ comp and other insurance policies are only one component of a complete enterprise risk management program. The best advice is to seek a qualified agent you can trust, then work in conjunction with the agent, the insurance company and the insurance company’s loss control department to build a well rounded program. Accidents happen, but the best way to contain costs is to provide as safe a work environment as possible.

decisions

desire avoid signs

Sometimes decisions you make can impact the pricing and availability of insurance. We don’t want to rain on anyone’s plans; however, it’s best to be aware so that you can make decisions with full information.

In some cases, policies may have exclusions that eliminate coverage for certain activities; require an endorsement; not be available from some companies; or have an increased premium due to the additional risk.

If you’re contemplating any of the decisions below, please call us first to discuss how these issues can impact your insurance coverage and premium.

  • Driving for a ride sharing/transportation service — Uber, Lyft, etc.
  • Buying a luxury vehicle
  • Renting a room in your home on a permanent or occasional basis — Airbnb
  • Buying a dog
  • Buying an exotic pet or farm animal
  • Installing a swimming pool
  • Constructing a treehouse
  • Buying a trampoline
  • Building a skateboard ramp
  • Hiring a nanny
  • Starting a home business — when does a hobby become a business?

diamond ring insure

 

Insuring jewelry is different from your other personal possessions. Standard home, renter and condo policies generally have a $1,000 specific limit in the event of theft. You may be able to increase that amount to $3,000 with some companies; however, for an expensive piece such as an engagement ring, you probably would have a coverage gap. 

schedule engagement ringSolve this problem by scheduling high value jewelry on your policy, which provides separate coverage, eliminates the deductible and provides coverage in situations not only of theft but also losing an item. Generally, it costs about $12.50 per $1,000 in coverage, so a $6,000 ring would cost about $75.00 to insure. Well worth it in case you look down and find your diamond is missing.

If you have jewelry that you'd like a quote on scheduling on your home, condo or renter policy, complete a scheduled item quote request. It takes just a minute and we'll get back to you shortly.

 

renters/apartment insurance

What happens if…

- at a party, someone slips and falls injuring their back.
- your jewelry and electronics are stolen in a burglary.
- you cause a fire or water overflow damaging your apartment and other units.
- a pipe bursts causing damage to your furniture and possessions.


According to a survey by Apartments.com, 58% of renters don’t purchase tenants insurance...often because they didn’t know that it existed or thought it was expensive. Yet, the average cost for a policy covering $20,000 in personal property and $500,000 of personal liability is approximately only $200 a year. That’s less than $17 a month or 55¢ a day. If you reduced going out to eat by one time a month, you could pay for renter’s protection.  And, if you skip a “big night out”, you could pay for the entire year of coverage in one night.   

Your landlord’s insurance does not cover your personal belongings. It's a common misconception that your landlord's policy provides coverage for you.  It doesn't! If you don’t have a policy because you’re trying to save, imagine having to spend thousands of dollars to replace your possessions. Sometimes people don't by renter's insurance because they think their stuff isn't worth that much. But, don’t focus the “actual current value” of what you'd get if you tried to sell all your possessions. Instead, think about what the “replacement value” of what it would cost to by everything new, which is what can happen if there is a fire.  

It’s not just about your stuff.  It’s about your being sued. If a person is injured in your home or you damage someone’s property, you could easily be sued. Not only will you have to pay to defend yourself, but if found responsible, your assets plus current and future wages are at risk.  If you don’t have renter’s insurance, but are thinking you should have it, don’t procrastinate. Get more information and a custom quote. For a list of 5 things to consider when looking at renters insurance, visit dfmurphy.com/rentersinsurancetips.

 

garaging location

 

The location where your vehicle is primarily parked overnight is termed the “garaging location”. If the garaging location changes, your auto insurance policy states that you are required to notify the insurance company immediately. There is no grace period for notification; therefore, it’s a good idea to let your agent know in advance when a garaging change will occur. Be sure to notify your agent if you (or a family member):

Moves to a new home or apartment 

Takes a vehicle to college or is returning home from college for the semester

Loan your car to someone for an extended period – Be sure the driver is listed on your policy

Take your car on an extended stay at another location:

  • at second or vacation home
  • visiting friends at their home
  • military service
  • living away from home for work

Claims can be denied for failure to notify

Failing to notify the company of a garaging change can result in an auto insurance claim being denied. The reason that garaging is such a serious issue is that auto insurance premiums are determined in part based on the garaging location. 

Different geographic locations are rated differently and have different premiums based on the area’s accident and theft history. When your garaging changes, the new location may have an increased risk of accidents or theft…requiring an increase of premium to cover that additional risk. Conversely, you may find that the new garaging location has no increased risk, which leaves your premium the same. Or, it could decrease the risk profile resulting in a lower premium. It all depends on where you move.

Admittedly, no one wants to see their premium go up, but it’s not worth delaying notifying the company because having a claim denied based on a wrong garaging address could be an expensive situation.

Check with us before you move

If you’re looking to buy a home or rent an apartment in a new city or town, you may want to check with us regarding how the move will impact your auto insurance premium. If the move will result in a substantial increase, it may impact your decision and cause you to consider locating to a different nearby town that has a lower rate. This may seem extreme, but if you’re budget conscious, then it’s wise to consider all the facts before you finalize your plans.

Space heater

As the chill of winter sets in, space heaters are a convenient way to add warmth in areas that may lack central heating or need an augmented heat source during colder months, but safety should always be a top priority to avoid potential fires. Follow these crucial tips to prevent space heater fires and create a secure and cozy environment:

Choose the right heater
> Select a space heater with safety features like tip-over protection and overheat protection.
> Look for heaters with a certification mark from a recognized testing laboratory.

Placement is key
> Keep the space heater on a flat, stable surface to avoid tipping.
> Maintain a safe distance of at least three feet from combustible materials such as curtains, furniture, and bedding.

Ventilation matters
> Ensure proper ventilation to prevent the buildup of carbon monoxide.
> Never use a gas-powered space heater indoors unless it's specifically designed for indoor use.

Electrical safety
> Plug the space heater directly into a grounded wall outlet; avoid using extension cords or power strips.
> Regularly check the cord for any signs of damage or wear.

Regular maintenance
> Perform routine maintenance, including cleaning filters and checking for any loose or damaged parts.
> Store the space heater properly when not in use, and follow manufacturer's guidelines.

Supervise and educate
> Never leave a space heater unattended, especially when sleeping or leaving the room.
> Educate family members on proper usage and safety precautions.

Emergency preparedness
> Install smoke detectors and carbon monoxide detectors in your home.
> Have a fire extinguisher nearby and ensure everyone knows how to use it.

Children and pets
> Keep children and pets away from space heaters to avoid accidents.
> Consider using heaters with grills or barriers to prevent direct contact.

Avoid overcrowding
> Use space heaters designed for the size of the space you intend to heat.
> Avoid using multiple heaters in the same room to prevent overheating.

Remember, a warm and cozy home can be achieved without compromising safety. By following these space heater safety tips, you can enjoy the comfort of extra warmth during the winter season while minimizing the risks associated with space heater usage. Stay warm, stay safe!

frozen pipes

There are lots of things you can do to reduce the risk of winter related losses such as frozen pipes. However, if temperatures are extremely cold and you turn on your tap to find a trickle or nothing instead of a steady flow, you probably have frozen pipes somewhere in your home. Water expands when frozen, but pipes do not, which can cause a pipe to burst. If you discover you have frozen pipes, act quickly...don't wait for them to burst.

frozzen pipesfrozen pipes

  • Turn off the water supply. If pipes are frozen and in danger of bursting, you want to stop the flow of additional water into the pipes to reduce potential for additional damage.
  • Protect your possessions. Move any possessions near the frozen pipe to a safe area to prevent damage if it bursts.
  • Locate the frozen pipe. Check water flow at faucets to determine if the frozen pipe is isolated in one area, more extensive, or close to where water comes into the home. Feeling along pipes can help to locate the frozen area. Look for bulging.
  • Take action to thaw pipes immediately. Be attentive as you thaw pipes because sometimes pinholes or cracks can occur from freezing and then upon thawing leaks become evident. There are lots of do-it-yourself tips on the internet on how to thaw pipes...search "thawing frozen pipes". You may want to do some advance reading just in case. Be sure to open faucets near the frozen pipe to let steam escape and water flow out. We recommend calling a licensed plumber for assistance. 

burst pipes

  • Turn off the water supply to stop the flow of water. Immediate action can be key to reducing additional damage. If it's an emergency and you don't know what to do, call the fire department. After the water is off, you can clean up the spill and work to reduce further damage. If a burst pipe is near any electrical switches or fuses, turn the power off at the panel. Never touch anything electrical if it's wet.
  • Clean up, make temporary repairs and take steps to prevent further damage. An insurance adjuster doesn’t need to see the actual water spill before you start cleaning up. However, the adjuster will want to inspect any damaged items. Documenting damage with pictures and/or video can be helpful to the process. If the leak involves ceilings being saturated with water, be extra careful of weakened construction that could collapse and cause injury. 
  • Get professional help. Most of us aren't skilled enough to make proper repairs especially if the damage is major and/or within walls. A licensed plumber (and perhaps electrician if electrical is involved) can help you make repairs. A professional water damage restoration company will remove water from your home and ensure that walls are dry to prevent a mold problem. Remember, mold cannot survive without moisture. You want to be sure repairs are done properly to prevent additional damage in the future. 
  • Call your agent or insurance company as soon as possible. At Murphy Insurance, our claims team is ready to assist you in processing a claim and connecting you with your insurance company. We have an emergency help line for after hours claim assistance. You can contact your insurance company directly if you prefer, but be sure to call us, too. Document anything that is damaged and save receipts for what you spend. 
NOTE: Murphy Insurance is not a plumbing or construction expert and cannot guarantee that prevention or corrective measures will alleviate damage. Murphy Insurance is not responsible for the accuracy or completeness of informaiton provided through links to other websites. Consult an experienced plumber, contractor or expert to determine the best solution for your situation.