How Telematics is Transforming Insurance
Technology is transforming every aspect of our lives, and insurance is no exception. Insurance carriers are tapping into automotive telematics to guide insurance premiums.
What is telematics? This is a form of communications technology that can be used for monitoring a vehicle to determine driving behaviors. Using a combination of GPS, Bluetooth, and mobile devices, insurance companies can review customers’ driving habits and reward safe behaviors with reduced premiums.
For example, a telematic device can monitor the times of day drivers are on the road, their mileage, and sudden changes in speed (which indicate rapid accelerations or hard braking).
Insurance companies can use this data to predict driving habits and generate a reasonable premium based on these behaviors. Drivers are typically required to have the device or use a smart phone in their vehicle for a set period of time before a premium is established. The premium may also fluctuate as driving changes. As vehicle operators drive more safely, the premium lowers.
Of course, if drivers have poor driving habits, this can cost the policyholder. If the telematics data shows risky behaviors, the premium could go up! However, the knowledge that they are being monitored and the incentive of monetary savings may actually help drivers develop better habits on the road.
Do your operations rely on any commercial vehicles? These safe-driving programs are a growing trend and could provide significant savings on your premiums. To find out more about telematics and how it can help you save money, contact our office.
Are You Using the Start/Stop/Continue Technique?
The Start/Stop/Continue technique is a simple and effective way to get customers to reflect on their experiences with your company and help you identify areas for improvement or expansion going forward.
The procedure requires no special equipment, training, or knowledge, and you can easily adapt the technique to gain helpful insights into products, services, methods, or processes.
Start
To begin, initiate a conversation with a customer and ask him or her to suggest new products, services, or activities that they would like to see your business offer in the future. Prompt them to think about new ideas, trends, or developments they may be aware of.
Stop
Next, ask the customer to look retrospectively at any problems or unmet needs they may have encountered when dealing with your company in the past. It’s important to ask specifically about any negative behaviors or low standards they observed.
Continue
Finally, ask your respondent to think about the core strengths of your business. Ask them why they do business with your company and encourage them to focus on those aspects that they believe you should continue or even double down on in order to improve future outcomes.
You can use the Start, Stop, Continue technique to get meaningful feedback from both internal and external stakeholders.
Because of its simplicity, the S/S/C method is a great tool to use with project teams, small groups and committees, all-staff meetings, and personal performance evaluations, as well as customers.
When Was Your Last Legal Check-Up?
Heading into the final quarter of the year is a good time to evaluate for next year and make sure you’re caught up on paperwork, fully compliant, and in good legal standing. It’s also a good time to think about changes that will help your business grow and succeed. Here are some things to review:
Consider your legal structure: Many businesses begin with a simple legal structure, but as they grow and become more complex, they find that a different structure is more appropriate. For example, small businesses often begin as sole proprietorships, but eventually opt to form an LLC or incorporate for purposes of liability protection, tax flexibility, and potential funding opportunities.
Reassess your physical or operational footprint: Maybe it’s time to expand, relocate, or enter a new market. It may be an opportune time to add a new line of business or enhance your product line. A bit of market research can reveal if conditions are right. The Bureau of Labor Statistics, the Economics and Statistics Administration, and local commerce websites are good places to start.
Take a look at staffing: Evaluate your team and identify where professional development and/or additional staff or contractors may be needed going forward.
Review regulation concerns: If you have changed the company name, business address, board membership, or operating structure, you may be required to report these changes. Also, licenses and permits may need to be renewed. And, of course, it’s critical to address your tax liability and file or pay what is owed.
When considering these matters, it’s always a good idea to consult an attorney and an accountant for guidance to ensure you’re doing everything necessary to keep your company legal, compliant, and on a path to success.
Technology Insurance vs. Cybersecurity Coverage
In today’s business world, most companies are dependent on technology for some or all of their company’s operations. While this makes many new processes and services possible, it also leaves businesses vulnerable to a new realm of risk.
Cyber crimes, computer crashes, and software malfunctions are just a few of the technological risks that modern companies now face. Since technological incidents can cost a business anything from a few minutes of inconvenience to millions of dollars, it’s essential for companies to have appropriate insurance coverage.
Enter technology insurance and cyber insurance.
These two types of policies provide the protection businesses need to recover from technological disasters. Not only is their coverage important, but businesses need to know that these policies are not one in the same. They apply to different circumstances, and a company might need one policy or the other, or both. Here’s the scoop.
Technology Insurance
Technology Errors & Omissions (E&O) policies cover companies that provide technology services (such as data storage) and technology products (such as computer software). The terms of the policy are designed to provide protection for loss and liability. Such losses might be related to liability for media content, damages due to security breaches, or losses due to business interruption. It can also cover extortion threats and crisis management expenses. Technology insurance also typically pays for groundless liability claims and all associated investigations.
Cyber Insurance
While Tech E&O policies are designed to protect technology providers, cyber insurance is intended to protect technology consumers (the company’s customers). It covers situations in which customers’ identities, credit cards, health records, or other sensitive information is compromised. The policy pays for any damages incurred.
Overlap
Cyber insurance policies and technology insurance do have some overlap. Either policy may provide coverage if a business experiences a loss related to technology. Since many situations impact both the technology provider and the consumer, this overlap is inevitable. However, the specifics of each policy’s terms will determine which situations are covered and which are not included.
Who Needs Coverage?
Since most businesses rely on technology for at least a portion of their operations, some form of coverage is recommended for a majority of companies. Those that serve customers and store sensitive customer information should strongly consider a cyber insurance policy.
For high-tech and internet-based businesses, technology business insurance is recommended. Such companies would include IT businesses, website developers, internet service providers, and programmers. Additionally, those who rely heavily on technology solutions as part of their operations (intranet communications, customer e-mails, database management) may also want to add this coverage.
Does your business fall into any of these categories? Are you properly protected with insurance for the tech side of your operations?
If you’re not sure which policy would be right for you or are unsure about your current coverage, contact our office. I’d be happy to review your current policies and coverage options to make sure you are prepared for any technological incidents that may come your way.
