Jill Roth, Ahart Frinzi & Smith, Alexandria

With perhaps the exception of ransomware, the largest source of cyber loss for insurance carriers is phishing scams, commonly known as business-email-compromises (BECs), whereby an insured is tricked into sending money by wire transfer to a bank account controlled by a criminal organization. Some losses are seven-figures; some represent death by a thousand wounds. During the last two years, many courts have found for the existence of Computer Fraud coverage for such loss in somewhat complex and sometimes head scratching decisions.
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It's clear that many agencies have begun experimenting with the use of AI in a variety of ways. While AI has the potential to greatly enhance agency operations, improve customer service, and create efficiencies, it is important that agencies use AI responsibly, ethically, and in a manner that aligns with the agency’s values and legal obligations. To do that, agencies should adopt a written policy governing the use of AI by agency employees when conducting agency business. 

Hurricanes and other natural disasters can take an immense toll on businesses including closures or disruptions that may last for days, weeks or longer. No business is immune to the effects of natural disasters. The State Corporation Commission’s Bureau of Insurance (Bureau) encourages businesses to assess their risk of damage or disruptions from disasters, review their insurance coverage regularly, and adjust it as needed to make sure they have enough coverage to help return their business to operation.
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Flood insurance is unusual. A flood policy essentially covers one peril but it is surrounded by many unusual facts and facets that make flood coverage unlike any other. Agents must understand the uniqueness of flood to more effectively present it to clients. With the threats of "atmospheric rivers" growing in California and other western states, reminding your insurance of the importance of flood insurance is only growing. 

Question: We just issued updated handbooks to all employees. We have asked everyone to sign and return the Receipt of the Handbook Acknowledgement form for their files. However, one employee refuses to sign and send it back to us even after we have sent multiple requests and reminders. What should we do?

“I have E&O coverage,” you may think, or, “It’s just a small claim!” Any E&O claim is a distraction to agency personnel and the agency may take a reputational hit within their community. However, there are many hidden costs of an agency E&O claim that go beyond your deductible. Direct claims cost are just the tip of the iceberg. Let’s cover some of the hidden costs of an agency E&O claim.