Accessibility Tools

Have an Import Export Business Get This Insurance

Have an Import Export Business Get This Insurance

Caring for staff is an important part of running a company. Depending on the state, insurance regulations vary. Standard business insurance policies include worker’s compensation and other liability coverage. For small businesses starting out, this may be enough coverage. For those in the export-import field there is extra protection available:

Credit-Risk Insurance for Exporters

Several export credit-risk policies are available courtesy of the Export-Import Bank of the United States (Ex-Im). Designed to both protect the insured and encourage expansion, these policies protect in case of buyer non-payment. They can also include protection from losses due to political, commercial, and natural influences. Policy options include:

  • Policies for Small Businesses. These policies are all-inclusive and available directly through Ex-Im. Umbrella policies are available and allow more-direct contact between owner and client for insurance matters. Income and export volume conditions apply; speak to an insurance agent for more information about small business policies for exporters.
  • Single-Buyer Short-Term insurance policies. Policies to protect single sales are available. For insurance for single shipments, speak to an agent about short-term export insurance protection.

These policy options are designed for small-medium sized companies with any level experience in the industry.

Cargo Insurance

For around one percent of the cost of transported good, cargo shipments are insurable for the worth of more than the cargo. Shipments are insured to compensate for time and profit-loss.

  • All-risk policies are the most inclusive, yet some restrictions apply. To access the most from a cargo insurance policy speak to an insurance agent.
  • General-average policies protect from transportation losses to other cargo from other exporters, included in the same shipment. Maritime regulations state all exporters utilizing the same ship bear the responsibility for all on-board contents. Tricky, right? Call an agent for more information.
  • Contingent insurance is there to cover gaps in insurance from other parties in a shipping transaction. Contingent insurance is the safety net for two-party transactions.

New exporters may wish to start small, yet as the company size grows so will risk. Policies can grow with the company.

Keeping Shipments Safe

There are a number of ways to help protect shipments before they head to sea. This can help reduce insurance claims, reducing premiums and costs as well.

  • Crate shipments for simple loading and unloading. Ports utilize forklifts, cranes, and other heavy equipment to load and unload cargo shipments. Packing shipments to withstand the loading and unloading process can limit and damages to the shipment.
  • Crate shipments for the high-seas. Oftentimes cargo is kept above-decks for exposure to the weather and sea-spray. The elements can wreak havoc on unsecured shipments, prepare for nature beforehand.
  • Crate shipments securely. During the transportation process, shipments may be left unattended. Reduce temptation by securing shipments with locks and other anti-theft measures.

Waterproof shipments when possible, and be liberal with the application of packing materials. Consider transportation routes and climates before crating, and always think safety first. For more information on insurance protection for exporter-importers contact an insurance agent today. Our agents are always on the lookout for ways to save money and promote health. Call anytime with any insurance-related questions.

Hacking on The Rise

Hacking on The Rise

It is estimated that over half the companies currently operating in the United States have been the victim of cyber-attacks within the past year. 53% to be exact, according to a recent study completed by cyber-insurance carrier the Hartford Steam Boiler (HSB) Inspection and Insurance Co. This study also found that of the businesses hacked within the prior year period, 72% spend over $5,000 investigating each incident. Response to cyber attack can be costly. Attacks must be discovered, damage mitigated, and changes may be necessary to limit future exposure.

More than a third of the businesses hacked (a whopping 38%) spent more than $50,000 in their response, 10% spend between $100,000-250,000 and 7% paid more than $250,000 in associated expenses. That’s over a quarter-million dollars on disaster response for a single attack. Timothy Zeilman, Vice President with HSB, a said the increased number of cyber assaults and associated high cost have companies more concerned with protecting information. Data is what drives a business; loss or corruption can be crippling on many levels.

Seven of every 10 executives worry data will become damaged or compromised due to a cyber strike. 62% of those surveyed worry about costly equipment damage as well. This study supports those concerns. The most common casualty in a cyber-attack is a loss of data (60%), followed by a disruption in day-to-day business (55%). Malware and viruses are frequent types of cyber-attacks. An increasing number of companies also experienced distributed denial of service (DDoS) assaults, payments demands via ransomware, cyber extortion of all types, and a number of social engineering issues.

Security experts say employees are a weak link in the chain when sensitive information is on the line, and business leaders agreed. When questioned on the largest risk to cybersecurity, respondents pointed to negligent or disgruntled employees (45%) and cyberpunks (37%). Almost two-thirds of businesses purchased or increased cyber insurance coverage over the past year. 56% of these businesses purchased a cybersecurity policy for the first time. This study was completed by Zogby Analytics on behalf of HSB. Zogby studied 403 presidents, CEOs, CFOs, and other high-level executives in the United States to accumulate data. Those surveyed worked in a range of industries with incomes ranging from less than $5 million to greater than $200 million.

We’re always searching for fantastic insurance information that may affect health and pocketbook. Call anytime with any insurance-related questions.