Renters Insurance Myths

Renters insurance exists to not only protect the belongings in your home, but so much more. There are so many misconceptions when it comes to what renters insurance is and what it covers. Here are some common myths (and realities) about renters insurance.

Myth: I don’t have enough valuable personal items to warrant renters insurance.

Reality: Items add up fast! Your electronics, appliances and clothes are all large expenses that can be protected under your policy.

Myth: My landlord’s insurance will cover the damages to my belongings.

Reality: Typically, a landlord’s insurance policy only covers the physical structure—not anything that’s within your walls or another tenant’s.

Myth: My personal belongings are the only things covered under renters insurance.

Reality: Renters insurance can also cover damage to someone else’s property within your home. And, depending on the limits of your personal liability coverage, it can help cover some or all of the medical expenses if someone happens to get injured on your property.

Myth: I can’t afford renters insurance.

Reality: Renters insurance can be incredibly affordable. Although pricing can always vary, some policies can cost less than $25 each month.

Don’t Wait to Secure Coverage

We spend a lot of time and energy filling our living spaces with items that make it feel like home—but it only takes one unexpected event for damages to occur.

Renters insurance can give you peace of mind in knowing that you and all of your belongings are properly covered. Be sure to secure adequate renters insurance as soon as you move into your new space. Visit our Personal Lines page to request a quote – https://dimondbros.com/personal-insurance/

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.

Navigating the Cyber Insurance Claims Process

Cyber incidents—including data breaches, ransomware attacks and social engineering scams—have become increasingly prevalent over the past decade, impacting organizations of all sizes and industries. These incidents are only expected to become more damaging and devastating in the years ahead, making it difficult for organizations to recover. In fact, global cyber economy researcher and publisher Cybersecurity Ventures projected that the cost of cybercrime could surge to $10.5 trillion by the end of 2025—more than tripling from $3 trillion in 2015.

Considering these findings, it’s vital for employers to secure sufficient cyber insurance. Also known as cyber liability insurance, such coverage can help pay for a range of first- and third-party expenses (e.g., incident response and data recovery services, legal fees, lost income, reputational damage, and regulatory defense costs) that may result from cyber incidents, thus mitigating the risk of large-scale financial losses when these events occur.

When a cyber incident strikes, it’s important for employers to know how to navigate the claims process and understand what their insurance may cover. In doing so, organizations can ensure a timely and cost-effective recovery, keeping related damage to a minimum. Although no two claims are the same and specific response measures may vary based on the nature of an incident and its associated losses, this article outlines four general steps for organizations to take amid the cyber insurance claims process.

Step #1: Notify important parties.

As soon as an organization identifies a potential cyber incident, whether it’s via threat detection software or an employee report, it should carefully assess the situation to determine the validity of the incident. Upon validation, the employer should swiftly execute their cyber incident response plan by contacting necessary parties (i.e., the local authorities, the cyber insurer and the broker) to kickstart the investigation and insurance claims process.

Notifying these parties is crucial for several reasons. Not only does it allow the organization to receive prompt assistance when a cyber incident occurs, but it may also be required to ensure coverage for the related losses. In particular, many cyber insurers mandate their policyholders to contact them immediately upon discovering an incident, typically before taking any other steps or incurring any additional costs, to maintain coverage. As such, failure to notify the insurer in a timely manner can expose the organization to possible complications in the claims process or even a denial of coverage. That’s why the employer should carefully review their policy to understand specific provisions regarding the discovery of a cyber incident and the required timeline for notification.

When it comes to notifying necessary parties, the organization should be prepared to provide in-depth information and resources regarding the overall scope and severity of the cyber incident. This will help the local authorities understand how to move forward with their investigation and give the cyber insurer and broker the details needed to streamline the claims process. Key information and resources may include a current narrative of events, documented proof of the incident and a calculation of associated losses. Because such information and resources can change as the incident develops, the organization should continue collecting details in real time and update necessary parties as needed

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.

Step #2: Coordinate with vendors.

After the employer notifies the necessary parties about the cyber incident, they should coordinate with various vendors to help remediate the situation and minimize related damage. Depending on the organization’s cyber insurance policy and particular preferences, it may select these vendors independently (as outlined in its cyber incident response plan) or obtain referrals from the insurer and broker. Therefore, the employer should be sure to communicate with the insurer and broker before moving forward with any vendors. In some cases, insurers may even require policyholders to receive explicit consent regarding vendor selections to prevent possible coverage exclusions. This is because some insurers have pre-negotiated rates with certain vendors, which can help minimize the costs incurred during claims.

There are multiple vendors for the employer to consider, each playing a different role in handling the incident. Key vendors include the following:

  • Legal counsel—An attorney who specializes in cybersecurity, also called a breach coach, can assist an organization in determining applicable data compliance standards for recording and reporting the loss or exposure of sensitive information. This attorney may also help the organization coordinate with other vendors and set up any necessary services (e.g., credit monitoring applications and call centers) for stakeholders or other individuals affected by the

cyber incident.

  • Forensic investigators—In addition to working with the local authorities, the employer can consult

forensic investigators to look into the cyber incident further, identify the perpetrators and assist with data recovery. These investigators can also help the employer prepare and uphold the integrity of any digital evidence associated with the incident. Such evidence may be particularly useful amid any legal proceedings involving the incident.

  • System recovery professionals—While forensic investigators can help the organization recuperate data impacted by the cyber incident, system recovery professionals can support the organization’s IT department as it works to restore any compromised networks, servers and technology. In turn, these professionals can ensure the organization resumes normal operations as quickly as possible, therefore reducing downtime and limiting lost income.
  • Crisis communication experts—The employer can utilize crisis communication experts to adopt a plan for handling any public relations concerns related to the cyber incident. In other words, these experts can

work with the organization to deliver appropriate post- incident communications to regulators, affected parties and the general public, thus helping the organization meet applicable breach notification requirements and minimize the risk of widespread reputational damage.

Step #3: Mitigate the incident and document associated expenses.

Upon coordinating with its selected vendors to fully mitigate the cyber incident, the organization should work closely with its broker and the insurer’s key representatives, namely the claims adjuster, to calculate the total expenses incurred amid the event and determine coverage capabilities. This entails keeping detailed records of all associated damage and restoration costs. Here are some important expense- related records for the organization to hold on to:

  • Vendor invoices and statements of work (SOWs)—The employer should ask every vendor they coordinate with to provide detailed invoices and SOWs that summarize the work being performed, highlight daily progress on this work and break down each component of the final bill. Further, the employer should clearly distinguish which aspects of every bill pertain to restoration costs versus improvement expenses. This is a crucial step, as most cyber insurers will only offer coverage for restoring systems and operations to the status they were in prior to a cyber incident rather than enhancing these elements beyond their original state. Moreover, neglecting to separate such costs could cause difficulties and delays during the claims process, extending the overall recovery timeline and

prolonging the final payout from the insurer.

  • IT receipts—In addition to keeping vendor invoices and SOWs, the organization should maintain any documentation of IT purchases made throughout the recovery process. This may include the cost of repairing damaged systems or replacing hardware that couldn’t be recovered with comparable solutions. Receipts should be separated based on the nature of each purchase; those related to system restoration will likely receive coverage, whereas those associated with upgrades to the IT landscape (e.g., enhanced security software) may not. Additionally, the organization may find it useful to distinguish between purchases that provided permanent IT solutions (e.g., the replacement of corrupted devices) versus temporary fixes (e.g., the interim use of alternative technology to reduce operational downtime).
  • Business interruption calculations—Depending on the specific details and severity of the cyber incident, the organization may incur minor or major business interruption expenses throughout the recovery process, especially relating to lost income. Because most organizations affected by cyber incidents are usually able to reinstate their key operations within a matter of days, cyber insurers often heavily scrutinize business interruption calculations and related expenses. In some cases, cyber insurers may even leverage forensic accountants to review these expenses further. As a result, it’s critical for the employer to consult their sales and operations teams to ensure accurate calculations and foster open

communication with the insurer’s representatives to reach a positive outcome. The most valuable business interruption expenses for the organization to document include diminished production capabilities, operational inefficiencies caused by temporary workarounds, lost or canceled orders, permanent contract losses, and prolonged downtime that allowed customers or clients to purchase products and services from competitors.

  • Other recorded expenses—The employer should record all remaining expenses incurred amid the cyber incident, such as temporarily elevated production and labor costs that helped make up for downtime. In the event that the incident prompted a lawsuit or attention from regulators, any additional legal fees (e.g., defense costs) and penalties should also be documented.

Altogether, keeping detailed documentation of all expenses related to the cyber incident can help the organization promote a more seamless claims process and confirm that the insurer’s representatives have the necessary resources to provide an accurate payout.

Step #4: Resolve the claim and determine key takeaways.

Finally, the employer should provide any additional information the insurer requests to help resolve the claim as quickly as possible. Upon receiving the final payout, the employer can review the cyber incident as a whole and identify key takeaways. This typically involves conducting a post-incident analysis. Such an analysis should focus on where the cyber incident originated; how it was detected; how effective the incident response plan was in handling this event; and the different technical, operational, and financial impacts of the incident. Depending on the cyber incident’s origin and associated losses, it may also be worthwhile to evaluate whether any organizational failures or shortcomings played a role in the event.

The results of the post-incident analysis will guide the organization’s identification of cybersecurity weaknesses and its effort to f ill possible gaps with bolstered defenses. Doing so is critical to help prevent future cyber incidents and minimize related expenses. Necessary adjustments may include modifying the cyber incident response plan, updating, or introducing new software, and implementing stricter security policies. Based on the outcome of the claim, the employer may also want to consult their broker to determine whether any coverage adjustments are necessary to ensure ample protection for cyber incidents going forward.

By having a deeper understanding of the cyber insurance claims process, organizations can navigate potential incidents with ease and keep related losses under control. Contact Dimond Bros. today for more risk management guidance and insurance solutions.

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.

Do you need Farm Insurance?

Dimond Bros. is proud of our relationship with trusted insurance providers.  Our friends at Nationwide Insurance shared the following to get you thinking about if you need farm insurance.

“Farmland is a valuable asset. But its value also makes it a liability if you don’t have the right insurance protection in place. 

There are many types of farmland owners. Some inherit the land and see it as a line item on a list of assets. Others may have retired from actively farming but want to stay involved as landowners partnering with renting farmers. No matter how close your ties to the active operation of a farm, one thing is true in every farmland ownership scenario. The right farm insurance coverage is a must.

“There are a lot more absentee landowners in agriculture today. Sometimes they don’t have many ties to agriculture. Such situations are a good reminder of how important farm insurance is for both the landowner and lessee,” said Nationwide Risk Management Services Regional Manager Emily Atwood. “Having the right coverage in place is a big part of avoiding financial risk for both parties.”

Specific risks inherent to owned farmland

A basic homeowner’s policy does not offer sufficient coverage for farmland owners. The potential risks of owning farmland extend well beyond those such policies cover. It’s best to consult a farm insurance agent or on ag risk management specialist to get a feel for the risks inherent to owning your specific farmland. Those potential risks to consider include:

  • Land use beyond production agriculture. This includes alternate ag uses like haying and grazing, and even extends to non-ag uses like hunting.
  • Structures on the property. Some land may have barns or grain storage buildings related to ag production. This also might include non-ag structures like farm houses and storage buildings.
  • Other ag assets on the land. Things like operating farm machinery and grazing livestock can present landowners with unique risks.
  • Anything that attracts visitors to the land. Agritourism activities and secondary farm businesses like produce stands can create new revenue on a piece of farmland. But they can also increase the landowner’s risk, especially if visitors are on the land.

Making lease agreements a win-win

Watch how a farmland owner and tenant work together to make their partnership work

Watch video

“Because there are so many risks specific to farmland, it’s a good idea to talk with a Nationwide farm certified agent to ensure you’re covered,” Atwood said. “Don’t rely on a standard homeowner’s policy for protection. Enlisting an expert can help you make sure your bases are covered.”

That expertise is even more important when farmland is part of a multigenerational operation, as it helps preserve its value for successors down the road, Atwood added.

Protecting your farmland begins with answering these six questions

In meeting with your team of trusted advisers, answering a few key questions can help you zero in on the right insurance coverage for your farmland.

  1. What is your main goal in owning farmland? Your insurance needs will differ whether you’re actively farming your land or considering it an asset for yourself or as part of a larger asset succession plan.
  2. How do you own your farmland? The ownership structure — sole ownership, co-ownership or as an enterprise like an LLC or corporation — often has a lot to do with your risk liability. A risk management specialist can flesh out these differences.
  3. What’s the land’s primary purpose? Sometimes how working land is used and what it grows — crops or livestock — influences your insurance policy options. Knowing what you’ll raise on your land will help clarify the right policies for you.
  4. How are you involved on your land? Some owners have a more active role in operations on their farmland. Just how much you work in the farm’s day-to-day operations is a factor to consider in selecting the right insurance policy.
  5. What are farmland prices like in your area? Things like buildings, fencing and even natural features like shelter belts, trees or ponds can affect the value of farmland. And this translates directly to the right coverage for you and its costs. Take an audit of anything on your land that may affect its value as you determine the right insurance policy options.
  6. What non-farm activities happen on your land? In some cases, agritourism or hunting may be part of the revenue equation for your farmland. Consider any such activities and their potential liabilities in making smart, informed insurance decisions.

Look local and work with the right team

Securing the right farm insurance protection is an important early step in protecting your farmland and your financial future. And it’s not a decision to be made alone. In working through the questions above, be sure to consult with your team of trusted advisers which should include your farm insurance agent, attorney, accountant, and farm management specialist.”

For more information about the Farm and Agriculture team here at Dimond Bros. Insurance please contact Scott Jensen at scott.jensen@dimondbros.com

Source: Do you need farm insurance? – Nationwide

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.

New Transparency Requirements for 2024

Group health plans and health insurance issuers are subject to many requirements designed to increase health care transparency and protect consumers against surprise medical bills. In general, most employers rely on their issuers, third-party administrators (TPAs) and other service providers to satisfy many of these requirements, including the obligations to provide machine-readable files (MRFs) and a cost comparison tool and submit detailed reports on prescription drug spending. Employers should confirm that their written agreements with their issuers, TPAs or other service providers have been updated to address this compliance responsibility. In addition, employers should monitor their service providers’ compliance with federal transparency requirements.

Employers should watch for additional transparency guidance in 2024, including guidance on the currently delayed requirement to provide advanced explanations of benefits (EOBs) and possibly new transparency legislation. In addition, employers should be aware of the following transparency requirements for 2024:

  • Cost comparison tool: For plan years beginning in 2023, health plans and issuers were required to make an internet-based price comparison tool available for 500 shoppable items, services and drugs. For plan years beginning in 2024, the internet-based price comparison tool must be expanded to cover all covered items, services and drugs.
  • MRFs: Non-grandfathered health plans and issuers must publicly post three MRFs regarding in-network provider rates, out-of-network allowed amounts and billed charges, and prescription drug rates and prices. Federal agencies have ended an enforcement delay for posting the prescription drug file. Future guidance will specify a timeline for complying with this requirement.
  • Prescription drug reporting: Health plans and issuers must report information about prescription drugs and health care spending to the federal government annually. This reporting process is referred to as the “prescription drug data collection” (or “RxDC report”). The annual deadline is June 1, which means that the RxDC report is due by June 1, 2024, covering data for 2023. However, because June 1, 2024, is a Saturday, this deadline may be extended to the next business day, which is June 3, 2024.
  • Gag clause attestations: Health plans and issuers must annually submit an attestation of compliance with the federal prohibition on gag clauses. The gag clause attestation is due by Dec. 31 of each year.

For additional information on the new transparency requirements or any other compliance concerns related to your employer sponsored health plan, please contact me at Mike.Holley@dimondbros.com

Mike Holley

Vice President of Life and Health – Partner

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.

Welcome Barham Benefit Group

Dimond Bros. is welcoming the Barham Benefit Group from Champaign, IL to Dimond Bros. effective 1/1/2024. With the merger, we are excited to be expanding our team to include James Barham. James has been licensed as a life, health and accident insurance broker in Illinois since January 1986. We are thrilled to have James join our Benefits Team.


When he is not serving his clients, biking or sky diving, James has maintained community focus as a priority. Having served as an elected Park District Commissioner, member of numerous boards, fundraiser, contributor and art gallery owner, his commitment to our community is well known. He has been honored to receive United Way’s Spirit of Caring Award, the Community Foundation of East Central Illinois’ Hearts of Gold Award and the Friend of the Agency award from the Housing Authority of Champaign County. Recently he has been active with the United Way of Champaign County’s Power of the Purse, the Housing Authority of Champaign County’s Youth Build Program, and the World’s Largest Recycled Glass Christmas Tree.

James will remain in his office location in Champaign located at 919 West Kirby Avenue Champaign, IL 61821 and can be reached via phone at (217) 356-1978 and email at james.barham@dimondbros.com.

Welcome to Dimond Bros. Barham Benefit Group and James!

How to Make a New Years Resolution – and KEEP IT!

As a new year begins, you may be reflecting on the past year. This introspection is a significant first step toward selecting a New Year’s resolution to help you grow as a person. Many New Year’s resolutions fail by mid-February due to a lack of self-discipline, with only 1 in 5 people sticking with them all year. That’s why setting yourself up for success when choosing a resolution is important.

Regardless of what you choose as your resolution, make sure it’s a “SMART” goal—one that is specific, measurable, attainable, realistic and timely—to increase the odds that you will stick to it. Here’s what that means:

  • Specific—A specific goal is simple and strategic. It’s something you can easily conceptualize. For example, instead of saying you’ll eat healthier, be specific about how you can actually do that (e.g., cook breakfast daily or eat fish twice a week).
  • Measurable—A measurable goal is quantified. You’ll be able to see if you’re making progress as you go. For example, if you want to save $500 for your emergency fund or save for a down payment on a home, you’ll be able to track your savings and prove you’re making progress along the way.
  • Achievable—An achievable goal is realistic and attainable. If you’ve never worked out before, a daily workout goal won’t likely be feasible or sustainable in the long run. Alternatively, if you’re already taking walks, start with increasing their duration or frequency.
  • Relevant—A relevant goal needs to make sense or be appropriate for you. You want your goal to matter, so reflect on the past year about what’s working in your life and what’s not. Timing is equally important, so ensure this is the right time for you to tackle the resolution.
  • Timely—A timely goal is accomplished within a specific time frame. You can adjust this period as needed and make new goals or deadlines after achieving the first one.

Remember that New Year’s resolutions don’t have to be health-related, so find what matters to you to help you live a better life in 2024.

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.