In Part 1, we looked at the changes in coverage and rating of the New Small Group. Part 2 discussed the penalties for employers that do not abide by the new ACA laws. In this article, we will discuss what an Applicable Large Employer (ALE) is and how that applies to the New Small Group. (more…)
In Part 1, we looked at the changes in benefits and how health plans are rated for the New Small Group. In this article we will look at the Play or Pay Employer Mandate in regards to the New Small Group.
The ACA mandates that employers with 50 or more full time equivalent employees (FTEs) MUST offer Minimum Essential Health Insurance Coverage (MEC) to their full time employees. Not only do they have to offer insurance, but the amount that the employee pays toward that insurance must be deemed ‘affordable.’ (more…)
Insurance companies have released their proposed rate increases for 2017. As suspected, all carriers are increasing their premiums. A good portion of the increase is due to the discontinuation of a reinsurance program that was initially available to help the insurance companies offset some of the higher costs they faced now that they are insuring chronically ill people as well as all others. Without the reinsurance program, the additional costs have now been passed on to the consumer. (more…)
The definition of a ‘small group’ changed in 2015, from 1-50 employees to 1-100 employees. Prior to this time, businesses with 50-100 employees fell into the ‘large group’ category. Most people do not realize that the medical benefits available – as well as the cost of those benefits – are very different between the two classifications of employee groups. This series of three articles will address these differences in the hopes of helping the New Small Groups understand their new rules and obligations according to the Affordable Care Act. (more…)
Many think of Cyber Liability Insurance as the protection major corporations need when their computers get hacked. That is partially true:
1. Cyber Liability is NOT just for major corporations. Smaller businesses have been the latest targets of cyber theft – you just don’t hear about it because larger losses make better news stories. The most often targeted are Accounting Firms, Payroll Processors, and Human Resource companies. But in reality, any business that has access to names, addresses, social security numbers, dates of birth, medical record or credit card information is a target for cyber thieves.
2. Computer hacking is not the only way your information can be compromised. Did you know that employee error accounts for 24% of all system compromises? It could be as simple as misdialing a fax number or opening a phishing email that can cause a breach of information. Have you ever had an employee lose a laptop or their smartphone? This can make your business vulnerable for cyber liability. And we won’t discuss that one rouge employee that is using his/her position in the company to access others’ personal information for their own benefit. But it could happen.
Cyber Liability isn’t just a fad. The FBI reports that. from 2015-2016, Cyber scams have increased 270%. That is why insurance companies have created policies that can protect you and your business should a breach occur.
No one can prevent a breach from happening. Yes, there are things you can do to minimize the possibility, like encrypting your records and having policies and procedures in place that employees can follow for best practices in handling information. But a Cyber Liability Policy can help you restore your business and your reputation once a breach occurs.
Many people believe they can self-insure against a breach. In reality, here are the expenses incurred when a potential breach happens:
1: Legal Counsel: to minimize lawsuits
2: IT Forensics: to determine how the breach occurred and how to prevent it in the future.
3: Customer Notification: every customer that has a POSSIBILITY of being breached must be notified.
4: Customer Call Center Support: you must supply someone that concerned customers can talk to about their questions and can advise customers as to how they should proceed.
5: Credit Monitoring must be offered to all potential victims of the breach.
6: Public Relations Expenses are incurred to rebuild your business reputation.
They say costs after a breach can run an average of $30 per victim’s name. For every 1000 people in your database (client or not), that is a $30,000 expense. Cyber Liability insurance can cover these expenses and help you get back to what you do best – your business.
Let Pronoeo Insurance Agency help you minimize your risk and protect your livelihood with Cyber Liability Insurance. Call us at 800-495-2886 for your free quote.