Many employers provide employees company cars. It is either told or assumed by the employee that insurance issues are covered by the employer. But commercial auto insurance policies are different than personal auto insurance policies. How can you ensure there’s no coverage gaps and appropriate coverage is in place?

If you provide a company car or if you are driving one, verify that corporate insurance is in place and that it provides primary coverage. Also, check the liability limits to confirm that they are adequate. Carefully adhere to any restrictions on personal use, including possible prohibitions of other drivers like family members or other employees.

There could be an assumption of personal auto policy to provide excess liability coverage. It is important to know who is driving company cars. If the driver does not own an auto but does have personal auto exposure (e.g., company car, borrowing friends' cars, etc.), there should be a personal auto policy purchased with a named non-owner coverage or related endorsement. Note that this endorsement could also be necessary if you need to purchase a personal umbrella policy.

Learn more about IMT Insurance Commercial Auto products or contact your local IMT Agent to discuss your coverage needs. 

It is estimated that organizations lose five percent of revenue to fraud each year, according to the 2022 Association of Certified Fraud Examiners Report to the Nations study. With billions of dollars lost each year, employee fraud is costly. Below are common types of employee fraud and ways to prevent them.

Data or Intellectual Property Theft 

Stealing information on customer accounts, for personal use or to pass to a competitor, falls under this category. Restricting access to information of this type in a way that creates a traceable trail can help keep less-than-honest employees on the straight and narrow. 

Asset Misappropriation 

Using the company credit card for personal purchase, padding an expense account, or using a company vehicle for personal errands all fall under this category. Careful and regular auditing of the company accounts, as well as paying attention to employees who aren't where they're expected to be, can catch such schemes before they go far. 

Health Insurance Fraud 

Not just submitting claims for medical treatment or health services that the employee didn't receive, but also conspiring with a health care provider to submit phony or inflated receipts can be the hallmarks of this type of fraud. Having a relationship with employees can be key to uncovering such tactics, particularly if an employee is active in a way that doesn’t mesh with medical claims that have been submitted for payment.

Workers Compensation Fraud 

An employee faking or exaggerating an injury or disability can cost a company a sizable amount of cash, as can one who claims an injury happened at work when it took place elsewhere. Any of these can put the company on the hook for a large amount.

Procurement Fraud 

Employees might be ordering goods or supplies ostensibly for the company but taking them home or returning part of an order for a refund. They could also engage in purchase order fraud by setting up a phony vendor account in which fraudulent invoices are paid. Audits on both receipts of goods and payments can help uncover such strategies.

Theft of Cash 

Depending on the type of business, this could be easy, with cash sales simply not recorded or phony refunds recorded as issued to a customer. Having specific procedures in place for the handling of cash, as well as being alert to any unexplained differences in money coming in or goods going out, can deter at least some cash theft plots.

Payroll Fraud 

Claiming overtime hours that were never worked or falsifying time sheets for regular hours are all forms of payroll fraud. Separating payroll duties so that a single employee isn’t in charge of the whole process, and verifying hours with employees themselves, can put an end to this.

The problem presented by employee fraud is very real — and costly! Small businesses are particularly vulnerable as they lost almost twice as much to fraud per scheme as larger businesses. As shared in the study, the most common way employee frauds are discovered is via tips or a hotline. Consider incorporating a way to allow for reporting if you don’t have something set up already to protect your small business. 

Home-based businesses are becoming increasingly common, especially with increased access to technology. Running business out of your home can be convenient and full of opportunity. But did you know it also changes the loss exposures and characteristics of your residence?   

Current Homeowners Policy Coverage

Common and typical homeowners policies cover losses to the property caused by perils such as fire, wind, lightning, and theft. And the liability portion will pay if someone is hurt on your premises. Talk to your IMT Agent if you have any questions about what is included in your homeowners policy. 

Related: Explore Personal Insurance with IMT

Additional Endorsements Needed for Your Home Business 

If you run a home business, any loss associated with that business may not be included in your homeowners policy. What if you had a small fire that damaged your home business office and computer and resulted in some lost income? Once your insurance company sends an adjuster and he or she discovers the business, your claim could be denied.

It is strongly recommended to purchase a home-based business endorsement to your homeowners policy or a businessowners policy (BOP). This additional policy will support your business-specific loss, even loss of income, to be covered.

And do not forget about liability. If you have business visitors in your home and they get hurt, the standard homeowners policy may not cover those injuries. Again, you need to purchase the correct endorsement to the homeowners policy or a separate BOP. Also, any professional liability coverage will not be covered under either of these approaches. A separate professional liability policy will need to be arranged for this loss exposure.

Different insurance companies have different criteria for excluding businesses from their policies. And they offer an assortment of coverages for this exposure. Specific coverage available under one insurance company may not be available with another.

The key thing to remember is this: if you are running a business out of your home, inquire about available coverage options to properly protect your business and your assets.

Talk to your local IMT Agent today regarding your home business!

We live in an online world, which includes more unanticipated risks that comes with being connected. Cyber risks like ransomware and email “phishing” are just a click away, and they’re not going away anytime soon. Small and medium-sized businesses are not immune to cyberattacks. In fact, this attitude is what makes small- and mid-size businesses prime targets for hackers: a lack of concern means business owners are less likely to implement necessary safeguards, which makes them easier targets.

The Chubb Cyber Index shows that 76% of all cyber incidents at small- and mid-sized businesses over the last three years were due to external factors, versus 61% for companies larger than $500 million in revenue. In fact, these smaller businesses are ideal targets for cybercriminals because of outdated or under prioritized security measures. Hackers and data thieves can deploy attacks quickly, cheaply and anonymously — increasing the likelihood of successful attacks against smaller businesses.

Chubb encourages small business owners to ask for help — especially when educating their employees, as it is among one of the most important elements to protect businesses from experiencing and bearing the financial weight of a cyber incident. 

Employee Training & Basic Technology Protections

In addition to employee training, small- and mid-size businesses should employ the following to protect against cyberattacks: 

• Adequate antivirus software
• Multi-factor authentication
• Password security and hygiene
• Monitoring of all network activity
• Updated operating systems

Related: What to Do After You've Been Hacked 

Back Up Your Data on Regular Basis

In addition to restoring against a cyber-attack, data loss could be caused by hardware failure or a natural disaster. Backup copies of your data are a form of insurance against devastating data loss. Many families, home-based businesses and small businesses do not adequately backup information. 

Businesses should back up operational, financial and customer information, including:

• Accounting databases, including AR and AP records
• Financial management reports
• Payroll records and employee files
• Point-of-sale and transaction history
• Customer records and CRM database
• Fixed asset inventory, photos, and preventative maintenance logs
• R&D, blueprints, and proprietary information

Determining Your Backup Schedule

To determine backup frequency, think about how much data you create on a daily, weekly and monthly basis. Then decide how much you could afford to lose should disaster strike when you are between scheduled backups. Restored data is only as good as your most recent backup.

If you take a lot of photos or work from home as a contractor or creative professional, consider backing up more frequently. Most businesses would benefit from an automated system for daily or weekly backups.

Backup Storage: 3-2-1 Rule

Once you have decided on a regular backup schedule, follow the 3-2-1 rule for backing up.

• Make at least three copies of your files and information.
• Create those backups on two different types of storage media—including USB drives, external hard drives, tape backups, or cloud storage.
• Keep at least one copy of your backup offsite, either in the cloud or safely in another building, a safe deposit box, or at another business location.

As cyber threats continually evolve, cyber insurance — in connection with these other preventative measures — can play a key role in the awareness, preparedness, and resiliency of small- and mid-size businesses. IMT Insurance offers a comprehensive cyber insurance solution to provide protection to businesses. 

For more information on how to protect your business against Cyber Attacks, talk to your local IMT Agent today! 

They are everywhere and chances are you've used one. From changing out a lightbulb to getting on top of a roof, ladders are a common piece of equipment used in almost every home or building and appear to be harmless. But thousands of people are killed due to falls from a ladder or scaffolding work. In fact, falls are the second leading cause of death next to highway crashes.

Understanding the different types of ladders as well as safe ladder practices are key to preventing falls and other potential injuries.

Safety Tips When Using a Ladder

• Read and follow all labels/markings on the ladder.
• Avoid electrical hazards! Look for overhead power lines before handling a ladder. Avoid using a metal ladder near power lines or exposed energized electrical equipment.
• Always inspect the ladder prior to using it. If the ladder is damaged, it must be removed from service and tagged until repaired or discarded.
• Always maintain a 3-point (two hands and a foot, or two feet and a hand) contact on the ladder when climbing. Keep your body near the middle of the step and always face the ladder while climbing.
• Only use ladders and appropriate accessories (ladder levelers, jacks or hooks) for their designed purposes.
• Ladders must be free of any slippery material on the rungs, steps or feet.
• Do not use a self-supporting ladder (e.g., step ladder) as a single ladder or in a partially closed position.
• Do not use the top step/rung of a ladder as a step/rung unless it was designed for that purpose.
• Use a ladder only on a stable and level surface, unless it has been secured (top or bottom) to prevent displacement.
• Do not place a ladder on boxes, barrels or other unstable bases to obtain additional height.
• Do not move or shift a ladder while a person or equipment is on the ladder.
• An extension or straight ladder used to access an elevated surface must extend at least three (3) feet above the point of support. Do not stand on the three top rungs of a straight, single or extension ladder.
• The proper angle for setting up a ladder is to place its base a quarter of the working length of the ladder from the wall or other vertical surface.
• A ladder placed in any location where it can be displaced by other work activities must be secured to prevent displacement or a barricade must be erected to keep traffic away from the ladder.
• Be sure that all locks on an extension ladder are properly engaged.
• Do not exceed the maximum load rating of a ladder. Be aware of the ladder's load rating and of the weight it is supporting, including the weight of any tools or equipment.

While some of these do's and don'ts may seem obvious, it's important to keep things in perspective. According to National Ladder Safety Month, every year over 100 people die in ladder-related accidents, and thousands suffer disabling injuries.

While falls from ladders are a growing concern, it's also reassuring and important to remember that ladder-related injuries and fatalities are completely preventable. 

Some businesses and individuals have a higher loss exposure to lawsuits. This tendency is often referred to as a suability factor. How suable you are can be determined by examining the following:

• Growth of business size
• Wealth indicators including real estate holdings or stock portfolio
• Family income
• Profile in the community and media
• Leadership activities on boards or associations
• Future income

Businesses or individuals with a high suability factor nearly always need an umbrella policy. By creating a single policy to increase the limits, you get the most coverage for your money by spreading the risk.

It is good to consider how much you have to lose should litigation lead to a court case where you’re found liable for damages. With the rising cost of medical and auto repair expenses, a major accident can often exhaust the policy limits on a typical policy if there are serious injuries involved. In this case, an umbrella policy would kick in and provide additional coverage. And in some cases, it provides broader liability coverage than that found in the underlying policies.

Learn more about Commercial Umbrella offerings from IMT Insurance. 

Those in agriculture know that time means money when it comes to yields, production schedules, and operating costs during the harvest season.  However, time can also ensure a safe harvest. Take extra time to perform a specific task safely and properly — this extra time can determine whether the task is completed at all. While large machinery and equipment is a necessity on farms to gather crops, it can also lead to farm related injuries and death. The reality is that many injuries can be prevented. 

Prevent Injuries By Following Five Simple Rules 

1. Develop a ‘safety first’ attitude. Follow safe work practices all the time and set a good example for others.
2. Be physically and mentally fit before operating farm equipment. Fatigue, stress and worry can distract you from safely and alertly operating machines. In addition, remember to take breaks.
3. Inspect the farm equipment and correct any hazards before operating.
4. Shut down farm machines, turn off the engine, remove key, and wait for all moving parts to stop before dismounting equipment.
5. Keep bystanders and others away from equipment operation area. Be especially careful of small children.

Many individuals, family, and friends will come together this harvest season. Remember to put safety first and put these simple rules into practice. Visit the National Education Center for Agricultural Safety to learn more. 

The U.S. Consumer Product Safety Commission (CPSC) established guidelines to promote public playground safety. This comprehensive handbook is intended to promote increased safety awareness for anyone purchasing, installing, or maintaining a public playground. Equipment intended for children's use in areas including:

• Non-residential child care facilities
• Institutions
• Dwelling for multiple families
• Parks
• Restaurants
• Resorts and recreational developments
• Schools
• Other areas for public use

Playground Design Tips to Reduce Hazards

The CPSC has done testing and research on the many different hazards and ways to reduce them. In addition to referring to the CPSC Public Safety Handbook, consider the following recommendations: 

1. Install a protective surface underneath all playground equipment to reduce likeliness of serious head injuries.
   • Protective surfacing should extend six feet in all directions around the playground equipment.
   • Swings should have protective surfacing in front and back of the swing to a distance that is twice the height of the bar from which the swing is suspended.
2. Regularly check equipment such as nuts, bolts, caps, chains, and cables and replace if needed. Surface mats and loose-fill surfacing should be maintained at their appropriate level.
3. Openings in guardrails or ladders need to be smaller than three and a half inches to prevent entry of a small child’s body, or larger than nine inches.
   • There should be no openings that can trap a child’s head or neck, such as openings in guardrails or ladders.
4. Playground equipment should be anchored to the ground. All anchors should be buried or covered to prevent tripping.
5. NO ropes, pet leashes, or cords of any kind should be attached to play equipment.
6. Platforms and ramps over 30 inches high need to have guards or barriers to prevent falls.
7. All sharp points or edges should be repaired, and any missing hardware should be replaced. 
    

View the Public Playground Safety Handbook provided by the U.S. Consumer Product Safety Commission for additional information. 

If you are a business owner and considering adding a playground to your facility, talk to your Independent Insurance Agent about proper insurance coverage. The IMT Loss Control Department has resources available to help agents and insureds assess safety and injury prevention. 

The size of your business does not impact the need to make safety a top priority for your organization. It could be argued that the smaller the business the more important safety becomes. The average cost for all claims combined for accidents that occurred in 2020-2021, according to the National Council on Compensation Insurance (NCCI) database, was $41,757. This cost significantly changes based on the nature of the injury. 

Employers of different sizes typically cannot absorb these costs equally. The smaller the business, the greater the financial strain.

Small businesses will sometimes contend that they do not have the same resources available as their larger counterparts to invest in a safety program. This includes time to spend on training, updated and safer equipment, time away from production and finances. However, even though some small business owners may find the cost of a safety and health program daunting, the benefits of the investment far outweigh the possible consequences of not doing so. 

We’ve outlined seven ways, according to OSHA, that investing in safety can actually benefit the bottom line:

1. Lowers workers’ compensation insurance costs
2. Reduces medical expenditures
3. Increase productivity
4. Enhances morale
5. Decreases turnover
6. Saves money on overtime benefits
7. Improves labor-management relationships

The IMT Loss Control team can help strengthen the safety environment for your business. Learn more about our approach on the Loss Control Services webpage. Keep your small business running by keeping your employees safe! 

Winter brings snow, freezing rain, and sleet. Being prepared for winter weather could save you time, money, and unneeded injury. When conditions deteriorate, are you considering your safety during all day on the job site or even regular transitions from point A to point B?

Having the right pair of ice cleats greatly increases your odds of staying upright. Most ice cleats work to some degree, but there can be big differences in how well and reliably they work. More than one type of ice cleat may be needed for different situations or job functions. When trying to find the right ice cleat, it’s far more effective to start by focusing on your job tasks rather than the differences between various ice cleats.

Selecting Your Type of Ice Cleat 

According to the Winterwalking.com website, there are three common categories of ice cleats. 

Working Traction

The most aggressive ice cleats for all-day use on ice and snow. These are good for employees who have the most exposure to icy and snowy conditions. They are built for aggressive traction and durability.

Transitional Traction

These do not need to be taken off indoors. These are designed for people who frequently transition from outdoor to indoor settings or drive vehicles.

Walking Traction

Ideal for employees who are asked to walk outside on ice and snow but do not spend their entire day working outside. They are lightweight and easy to put on and take off.

Related: Ways to Avoid Frost Bite & Hypothermia

The IMT Loss Control Department has a variety of safety resources available on a wide range of topics (including winter safety) to help reduce both exposure and injuries. Please contact your IMT agent if you think you think could benefit from a visit with our loss control professionals.