The SeibertKeck Team wins the 31st Annual Golf Outing, hosted by the Wadsworth Chamber of Commerce.
In the middle of a string of extremely rainy days, Monday, June 15, turned out to be a beautifully sunny day for our golf outing with great golf, good friends and delicious eats.
First Place The SeibertKeck Insurance Team:
Joe Magnacca, Wadsworth City Schools; Craig Hassinger, SeibertKeck Insurance; Russ Corwin, Corwin & Co.; Andy Antonino, Qualiform, Inc.
Additional information about the outing can be found in the Wadsworth Chamber of Commerce Newsletter.
Your CFO gets an email from one of your international vendors. It says, “We’ve made a few changes and we’re switching banks. Here is our new routing code and account number. Please remit all future payments here.” The email is from somebody the CFO recognizes with the right logo and email signature. He or she forwards the message to whoever will make the necessary changes to your online system, and the next time you need to make a payment to that vendor, your company uses the new information. About a month later, your CFO gets an email from the company, asking why you haven’t paid them. He or she sends the record. Your international vendor says, “That’s not my account number.”
So, if the money is gone, you’ll want to make a claim on your crime policy, right? In nearly every case, however, your policy will exclude the claim because it was voluntary parting.
What is social engineering fraud?
Social engineering fraud is deceptively gaining the confidence of an employee to induce him or her to part with money or securities. The fraudulent party might pose as a trusted vendor, client or employee through the act of phishing — sending emails from what appears to be a reputable source.social engineering
Why doesn’t a standard crime policy cover voluntary parting?
There is a voluntary parting exclusion in nearly every crime and/or property policy. Voluntary parting is when you willing give your property and/or assets away. Even if you were tricked into doing so, by voluntarily giving this away, an insurance company typically won’t cover your claim. For example, the carrier will say that you should have investigated and confirmed before changing that billing information.
Most businesses have some kind of crime insurance. They may not have enough or the right type, but they have a crime policy. It’s only when they go to actually use it that they find out how little it actually covers because it wasn’t written correctly. Again, even if you buy standard computer fraud coverage on your crime policy, which is becoming more widespread, it won’t cover an instance that involves voluntary parting through social engineering fraud.
Who is being affected by this kind of fraud?
Social engineering fraud is an alarming trend; at our office, two claims have been filed in the past 60 days. Even if your company conducts vendor background screenings, employs fraud detection systems, segregates financial duties and educates employees on how to detect fraud, it still may fall victim. Smaller companies may lack proper financial or wire transfer controls, while large companies don’t always keep as close an eye on every single financial transaction.
For instance, your company’s accounts payable manager receives an email from a familiar overseas supplier. Your manager tries unsuccessfully to reach the bank, and the supplier’s emails asking you to pay the invoice become more urgent. Finally, in order to keep the supplier happy, the manager wires the money. Then, the next day, the real supplier calls in a panic and says it has been hacked.
How are insurance companies responding?
Carriers are starting to offer businesses the ability to buy an endorsement that fully carves back the voluntary parting exclusion for social engineering fraud. This is in response to the increasing number of claims being uncovered through a traditional crime policy. With a full carve back, there is still a standard of proof but it allows your coverage to trigger in the event that you or your employees are duped or defrauded. Some policies may include language that could stretch to cover this same type of claim, but voluntary parting will still be a burden to the insured.
This fraud is a trend that is only going to escalate in the business world, so ask your broker today about better protecting your company from social engineering fraud.
Spring is finally here, and you’re cleaning out your garage and getting out of the house as much as you can. But as you take out your all-terrain vehicles (ATVs), golf carts, boats, recreational vehicles (RVs) and more, grab your insurance policy, dust it off and make sure your summer toys are covered. More than likely, they’re not.
Depending on how you utilize these vehicles, your claim will be denied — accidentally exposing your personal assets to lawsuits — unless you schedule them properly or obtain additional coverage.
Why aren’t ATVs, golf carts or other off-road vehicles included in the personal insurance you already own?
Your policy covers ATVs or golf carts when you stay on your own property and your family drives or rides on them — that’s it.
As soon as you go on the road, head over to the neighbors, load up the ATV to take it camping or allow someone else on the vehicle, you need to buy and list coverage for that specific unit on your policy.
Not only are you covered if the vehicle is damaged, but you also have bodily injury coverage. This is in case you hit somebody or someone riding on it falls off and hits his or her head, resulting in a lawsuit.
You might also need to buy coverage for your kids’ toys, such as motorized John Deere gators. If you know your kids’ friends will use it or they are going to drive over to the neighbor’s yard, you should pay a small fee each year to have it covered.
What does it cost to get coverage?
It’s not a huge amount of premium dollars but it can create a world of trouble if you don’t talk to your agent.
He or she can explain the benefits and where a particular item would best be covered, but you’ve got to have the conversation first. For example, a gator licensed for road use, even though it doesn’t go over 25 mph, could be put on either a homeowners or auto policy.
If it’s so simple, how does it get overlooked?
Your agent may have had a good idea of what you owned when they first insured you, but since then you probably have purchased, sold and gotten rid of a variety of things. It’s time to bring your agent up to speed on the toys you have now, and who plays with them and where.
When are people denied coverage with their sports cars?
Those who own Porsches, Corvettes or Ferraris often drive those cars on racetracks, perhaps on a track at a driving school.
These drivers think they are covered if they wreck their car, but nine out of 10 personal auto policies have a specific exclusion in the language that says, ‘We will not cover anyone who is driving — and they list it out — if they are racing, preparing for a race, practicing, qualifying, doing speed contests or demolition derbies.’
Some policies will go as far as stating that if you’re within a racing facility or compound, you’re excluded. There are, however, a few insurance companies who cover track driving at a school. Make sure to discuss this with your agent to confirm if you have coverage or not, prior to attending the driving school.
What’s the necessary coverage for watercraft, motorcycles or RVs?
Watercraft like motorboats, personal watercraft or pontoon boats are placed under a marine liability policy. RVs, motorcycles and summer cars require a separate auto policy specialized for unique autos.
In some cases, these items can be added to your current home policy as an endorsement. But again, the most important thing is to disclose that you have them.
So, as you’re doing spring-cleaning with your house and cars, look at your policy and look in the garage. What toys do you have out there?