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Insurance plays a crucial role in your life’s financial security and stability. The various policies and coverages that make up your insurance portfolio can potentially ensure you’re able to endure accidents, natural disasters and unexpected circumstances that might otherwise incur devastating financial losses. These risks may be particularly prevalent for those who fail to identify and address common coverage gaps.

This article can help you understand how and why specific gaps in your insurance could have significant financial ramifications for you and your family. Dimond Bros. Insurance is focused on assisting you in not only identifying and understanding these possible pitfalls but also filling them and ensuring that your personal lines insurance portfolio offers fortified financial protection.

Common Personal Insurance Gaps

Your personal lines insurance portfolio may consist of several types of policies, each covering risks and exposures that might otherwise lead to significant financial losses. Despite how you may have assembled an appropriate collection of policies, each one might still be prone to having coverage gaps that could leave you vulnerable to unexpected situations. The aftermath of an accident or other losses is the worst time to realize you’re underinsured, so it’s essential to identify and address gaps before coverage is needed.

Consider the following common personal insurance coverage gaps:

• Home insurance—Also known as homeowners insurance, this type of policy can be rife with coverage gaps if you’re not careful and do not work with a qualified professional. Be particularly mindful of the following possible gaps: Natural disaster exclusions—Certain natural disasters are often explicitly excluded from standard home insurance policies. For example, flood insurance must typically be purchased separately. Homeowners in certain parts of the country may also need coverage for earthquakes and windstorms.

• Coming up short of the 80% rule—Insurance carriers typically enforce the 80% rule, which states that homeowners must retain enough coverage to pay for at least 80% of the estimated cost of a complete rebuild of their home. Failing to do this could lead to lesser payouts following covered losses.

• Neglecting scheduled property coverage—Home insurance typically includes some coverage for personal possessions, but limits are often insufficient for those with significant valuables, such as fine art and jewelry. Additional coverage options, such as scheduled property coverage, may be necessary to ensure policyholders can recoup losses involving treasured items.

Auto insurance—These policies may also be referred to as car insurance and are often legally required. Still, while one of the most commonly purchased types of insurance, auto coverage is easily misunderstood, necessitating awareness of the following possible errors: Fulfilling only minimum requirements—While most states require motorists to carry certain levels of coverage, such as third-party liability coverage, simply complying with such mandates may not be enough. For example, many states do not require collision coverage, but if you crash your car, this part of a policy could be critical in ensuring you can repair or replace your vehicle.

Lacking gap coverage—Aptly named, lacking this component of an auto insurance policy could represent a significant hole in your coverage. Gap coverage can be critical in offsetting losses if you’ve financed your vehicle. If your car is totaled or stolen and you still owe more on your loan than the vehicle’s current value, this coverage can make up the difference and limit out-of-pocket losses.

Life insurance—The right life insurance policy can provide financial stability and peace of mind for you and your loved ones. However, insufficient or outdated coverage could have dire ramifications, exacerbating the already difficult circumstances of a grieving family. Avoid this hardship by considering the following potential shortcomings in your coverage:

• Relying on group coverage—Life insurance offered by an employer can be a valuable employee benefit; however, one should not depend on this as your only form of coverage. Group life insurance plans are typically tied to employment status, meaning that being let go or retiring would result in no remaining coverage.
• Insufficient limits—As a person’s circumstances change, they may need to adjust their life insurance policies. For example, having a child or gaining a dependent typically increases expected expenses. Without making adjustments to life insurance, payouts could be insufficient to provide for a deceased’s family.

Personal umbrella insurance—This type of insurance may not be as well known as others, but for many people, it can be just as important. An umbrella insurance policy casts an additional layer of financial protection over various liabilities that might exceed the coverage limits in other policies. Consider how personal umbrella insurance might help fill the following coverage gaps: Inadequate auto insurance—Even if you’ve fulfilled your auto insurance policy’s minimum liability coverage requirements, severe accidents could have greater costs. If several people are severely injured, many vehicles are damaged or losses otherwise amount to a sum greater than your auto coverage can handle, personal umbrella insurance can offer additional aid and limit out-of-pocket losses.

Insufficient home insurance—Certain accidents and other incidents at your home could be exceptionally costly. For instance, if your home has attractive nuisances, such as a swimming pool, or you regularly host large gatherings, accidents affecting multiple guests or inflicting significant injuries could quickly exhaust the liability coverage limits in your home insurance policy. Without umbrella coverage, you’d be saddled with paying the remainder out of pocket.

How to Avoid Coverage Gaps

Now that you have a better understanding of common coverage gaps and the potential consequences of being underinsured, you can take steps to shore up your insurance portfolio. Consider the following steps:

Appraise your belongings. One of the most effective ways to ensure you’re adequately covered is by being current on the value of what you’re insuring. Save receipts and document the condition of your possessions, and consider enlisting the assistance of professionals to appraise certain items, such as fine art and jewelry.

Assess liability risks. Whether considering home, renters, auto or umbrella coverage, certain policyholders may need to manage greater liability risk levels. For example, if you have children or pets, you may want to retain more coverage in your home insurance policy. Similarly, additional financial security may be advisable if you have a teen driver listed on your policy.

Consider recent life events. When your circumstances change, you should revisit your insurance policies. Getting married, having a child, buying a home or car, or moving should all trigger this process. Neglecting to account for life events in your insurance portfolio could lead to you being underinsured and your policies’ limits being incapable of covering losses.

Understand endorsements and options. Familiarize yourself with all of the features and enhancements that might be available. While a standard home insurance policy may be sufficient most of the time, specific exclusions, such as for floods and hurricanes, could mean the difference between weathering a financial storm alone or being buoyed by financial aid.

Enlist assistance. The knowledge and experience of a qualified insurance professional can be invaluable as you seek to purchase or reassess the components of your personal lines coverage.

Get the Right Coverage

In the wake of an accident, damage to your home or other incident involving financial losses, the last thing you want to hear is that your insurance isn’t capable of what you expected. Coverage gaps can quickly lead to unexpected expenses, potentially incurring far-reaching fiscal consequences that might upend your entire life.

At Dimond Bros. Insurance, we’re committed to making sure that you and your family are adequately insured. Contact us today to learn more about personal lines coverage options and to ensure you’ve identified and remedied any coverage gaps. This article is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice

The construction industry is continuously moving toward digitization, adopting advanced technology such as artificial intelligence, the Internet of Things (IoT) and Building Information Modeling software. These innovations help to automate tasks, reduce waste and improve efficiency, productivity and safety.

However, this shift also brings significant cybersecurity risks. As construction companies increasingly rely on digital tools and store large amounts of sensitive data, cybercriminals increasingly view them as attractive targets. As a result, construction businesses must take action to protect sensitive information from data breaches and other cybersecurity incidents that can create financial hardship and reputational damage.

This article outlines why cybercriminals target the construction industry, discusses examples of common types of cyber attacks and why they are utilized, and provides cybersecurity best practices. It also examines the role of cyber insurance in mitigating cyber risks.

Why Cybercriminals Target the Construction Industry

There are several reasons why the construction industry is an appealing target for cybercriminals, including:

High-value transactions—Construction projects often involve significant financial transactions, making them attractive targets for ransomware, phishing attacks and financial fraud. The high value of these transactions can incentivize cybercriminals to attempt fraudulent payments or extortion.

An abundance of sensitive data—Construction companies manage sensitive data like blueprints, architectural designs, bids, contracts, and employee and client information. This data is valuable to cybercriminals, who can exploit it for financial gain through data breaches or sell it on the dark web.

Complex supply chains—With multiple stakeholders and subcontractors involved in construction industry supply chains, each with potentially varying levels of cybersecurity maturity, the odds of network vulnerabilities increase. Malicious actors may target these weak links in the supply chain, as they may serve as potential access points for cyberattacks.

Outdated cybersecurity measures—Many construction firms rely on legacy systems or outdated software that does not provide adequate protection against modern cyberthreats. These weaknesses present attractive opportunities for intrusion by hackers, who often seek out older systems that have known vulnerabilities and are easier to exploit.

Increasing adoption of digital technologies—The digital attack surface has expanded with the construction industry’s increasing use of digital technologies (e.g., IoT, remote project management, cloud storage). Although improving efficiency, these technologies have created more chances for malicious actors to infiltrate networks, especially.

 Common Cyberattacks and Why They Are Utilized

There are many types of cyberattacks; the following are commonly used against the construction industry for various reasons:

Ransomware attacks occur when cybercriminals gain access to a business’s computer system, encrypt the files and demand payment in exchange for providing a decryption key. This attack can be effective against construction companies because projects often have strict deadlines, making business interruptions extremely costly and prompting targets to pay the ransom quickly in an attempt to avoid further losses.

Phishing attacks involve malicious actors tricking users into providing sensitive information (e.g., passwords) through fraudulent emails, text, calls, websites or links. Construction firms often employ temporary staff and subcontractors who may not be familiar with a company’s internal communications. This makes phishing attacks especially effective, as cybercriminals can exploit this unfamiliarity and trick targets into revealing sensitive information or clicking on malicious links.

Business email compromise (BEC) occurs when a malicious actor impersonates a legitimate individual (e.g., a CEO or in-house counsel) or hacks into that person’s email account and fraudulently requests money or sensitive information. BEC scams are used against construction companies because large amounts of money and sensitive data often move between project stakeholders, so these requests may not raise a red flag and can go unnoticed.

Supply chain attacks happen when a cybercriminal infiltrates a business’s supply chain. Construction companies often rely on multiple subcontractors and third-party vendors, which increases the potential for cybercriminals to target less secure partners. Once a third-party vendor’s system is breached, attackers can enter into the main company’s network, compromising sensitive data.

Distributed denial-of-service (DDoS) attacks are when cybercriminals overload a business’s network with traffic, disrupting standard operations or causing a network outage, leading to costly project delays. The cybercriminals can then leverage the interruption to extort a ransom from construction companies in exchange for ending the DDoS attack.

CyberSecurity Best Practices for the Construction Industry

Although cyber threats are numerous and evolving, there are several measures construction businesses can take to safeguard computer systems and networks:

Employee training and awareness programs allow employees to educate their workers on cyberthreats. They also allow discussion on combating cyber risks by following the organization’s cybersecurity policies and procedures.

Multifactor authentication can add additional layers of protection through authenticators, such as one-time passcode for time-sensitive links, before a user can access a company’s network or system.

Regular software updates and patch management can ensure software programs are best positioned to defend against the latest cyberthreats.

Network segmentation divides a network into smaller parts so that if it is infiltrated, there will be security barriers to prevent lateral movement across the network.

Access controls limit who can view or access sensitive information and the situations when they may do so.

Data encryption transforms data into an unreadable, encoded format so malicious actors cannot decipher it without the correct key.

Data backup and recovery systems allow businesses to quickly recuperate after cyberattacks (e.g., ransomware or DDoS attacks) because their data is stored in another place (e.g., external hard drives or a cloud) and can be quickly reloaded onto systems to minimize downtime.

Vendor and supply chain management ensures companies select and work with vendors with strong cybersecurity practices. By carefully vetting partners, construction companies can reduce the risk of supply chain attacks.

Incident response planning and testing allow construction firms to proactively build their cyber defenses by having policies and procedures to respond to cyberattacks and test their systems to find and repair weaknesses.

The Role of Cyber Insurance in Mitigating Risk

Even with a robust cybersecurity defense, no system is immune to attacks. Cyber insurance helps mitigate exposure to cyber-related losses, filling gaps that may be left by other policies (e.g., commercial property insurance, general liability insurance.), which typically do not cover cyber-related events. It is specifically designed to cover business interruption and other financial losses that result from cybersecurity incidents, such as data breaches and ransomware attacks.

Many cyber insurance policies provide access to a vendor panel that include legal counsel, public relations firms, IT specialists and other experts who are experienced in managing cyber incidents. This can help businesses respond quickly and effectively mitigate the impact of a cyberattack on operations, reputation and finances. Since cyber insurance policies vary in coverage, limits and exclusions, it is advisable to consult a licensed insurance professional for assistance in selecting a policy that best suits a construction business’s needs.

Conclusion

Cyberattacks are a serious threat to the construction industry. Cybercriminals can utilize many methods to steal data or disrupt computer networks for financial gain. Strong cybersecurity practices with the proper cyber insurance policy are essential to address this risk. By being proactive, businesses can mitigate this exposure and safeguard their finances and reputations.

Contact us at feedback@dimondbros.com for more information or connect with your local Dimond Bros. team member. 

This article is intended for informational purposes only and is not intended to be exhaustive, nor should any discussion or opinions be construed as professional advice.

When provided a new email address, it is encouraged that you whitelist the email in the email program you are utilizing. 

By whitelisting your Dimond Bros. service team members email addresses, you are telling your email service to always let their emails in. Doing so will help ensure that any emails from that address bypass spam filters and junk folders and that important messages find their way into your inbox in a timely manner. 

If you’ve been directed to this article, step by step directions on how to whitelist an email based on your email service provider can be found here:  https://clean.email/blog/email-security/how-to-whitelist-an-email

Contact your Dimond Bros. team member or feedback@dimondbros.com with questions.

Protecting Agriculture From Severe Weather

Severe weather can devastate agricultural operations, no matter their size or location. Specific weather perils may include hail, strong winds, floods, droughts, tornadoes or blizzards and can cause significant property damage, financial loss and injuries. Through knowledge and preparation, farms can mitigate the risks they face from these natural phenomena.

Here are tips on how to do so:

Every farm operation has different exposures, but they all need to comprehensively examine their risks and utilize strategies to ensure the protection of their workers, property, crops, and livestock.

For more information about the Farm and Agriculture services at Dimond Bros. Insurance please contact Scott Jensen at scottjensen@dimondbros.com.

This article is intended for informational purposes only and is not intended to be exhaustive, nor should any discussion or opinions be constructed as professional advice.

As we approach the open enrollment period, it’s crucial for employers to facilitate a smooth and successful experience for both their organization and employees. Open enrollment presents an opportunity not only to ensure adequate benefits coverage but also to strengthen employee engagement and satisfaction. Here are some strategies to make your open enrollment period a strategic success.

1. Clear Communication is Key

Start by informing your employees well in advance about the dates and details of the open enrollment period. A well-crafted communication plan can alleviate confusion and uncertainties. Use multiple channels—emails, in-person meetings, and intranet updates—to engage your employees. Personalizing communication can also foster trust and understanding of the benefits being offered.

2. Ensure Comprehensive Education on Benefits  Given that health plans and benefits can be complex, equip your employees with the necessary tools and resources to make informed decisions. Consider hosting interactive workshops, Q&A sessions, and webinars to explain the various health plans and their features. Create educational materials like flyers or infographics summarizing key benefits and comparisons. This ensures employees feel confident in their choices, reducing the likelihood of post-enrollment dissatisfaction.

3. Leverage Technology for Ease and Accessibility  Utilize technology to streamline the enrollment process. Many HR platforms offer user-friendly interfaces for employees to enroll or make changes to their health benefits conveniently. Moreover, these platforms often provide access to important documentation and plan information. By promoting ease of access, employees are more likely to engage thoroughly with their benefits.

4. Encourage a Health-Conscious Culture** Encouraging health and wellness during enrollment can enhance the overall impact on employee engagement. Introduce wellness challenges or initiatives during this period that promote the importance of health while educating employees on the benefits of preventive healthcare plans. Engaging with qualified professionals, such as wellness coaches or healthcare advisors, can build excitement and awareness around your offerings.

5. Feedback Mechanisms

Post-enrollment, solicit feedback from employees about the enrollment process and the benefits they selected. This provides valuable insights into any gaps or areas for improvement in your overall benefits strategy. Use this information to adjust your offerings or processes in the following year to better cater to the needs of your workforce.

6. Highlight Success Stories

Celebrate success stories throughout the enrollment period. Showcase employees who have effectively utilized their health benefits and achieved positive outcomes. This not only encourages other employees to take full advantage of the resources at their disposal but can also help to create a culture of wellness and support within your organization.

In conclusion, open enrollment is more than just a requirement for compliance—it’s an opportunity to engage, educate, and empower your employees about their health benefits. By implementing clear communication, leveraging technology, fostering a health-oriented culture, encouraging feedback, and celebrating successes, employers can create a positive open enrollment experience that resonates throughout the year. Let’s make this open enrollment period one where employees feel valued, informed, and excited about their healthcare choices!

If you have additional questions about how we can assist with your Open Enrollment, please contact Mike Holley, Vice President – Life & Health for Dimond Bros. mike.holley@dimondbros.com

This article is intended for informational purposes only and is not intended to be exhaustive, nor should any discussion or opinions be construed as professional advice.

As a homeowner, you may not think about your roof every day, but when it comes to your homeowners insurance, the age of your roof can make a big difference. With insurance carriers taking a hard line in the current market, the age of your roof has become a significant factor in determining insurance premiums and coverage.

An old roof can pose a higher risk for insurance carriers, as it is more susceptible to damage and leaks, especially during extreme weather conditions. This increased risk often translates to higher premiums for homeowners with older roofs. In some cases, insurance carriers may even limit coverage or require a roof inspection before providing full coverage.

During a hard market, where insurance carriers are tightening their underwriting standards and increasing rates, homeowners with older roofs may find it more challenging to secure affordable coverage. Some carriers may even refuse to insure homes with roofs that are deemed too old or in poor condition.

For homeowners navigating the insurance market in these challenging times, proactive steps can be taken to mitigate the impact of an aging roof. Regular roof maintenance, such as inspections and repairs, can demonstrate to insurance carriers that the roof is being properly cared for and may help in securing better coverage options.

Additionally, investing in a new roof, if financially feasible, can not only reduce insurance premiums but also provide peace of mind knowing that the home is better protected against the elements. Some insurance carriers may even offer discounts for homes with newer roofs or certain types of impact-resistant roofing materials.

In summary, as the insurance market tightens and carriers become more selective, the age and condition of your roof can significantly impact your homeowners insurance. Taking proactive measures to maintain or replace your roof can help mitigate the effects of the hard market and ensure that your home is adequately protected.

This article is not intended to be exhaustive, nor should any discussion or opinions be construed as legal
advice. Readers should contact legal counsel or an insurance professional for appropriate advice. For more details regarding the information contained in this report, contact Dimond Bros. Insurance today. Please note that leaving a message in email or voicemail does not constitute the binding of coverage and you must speak with an Agency Representative.