Majority (84%) Small Businesses Risk Errors, Opportunity for Automation

A good number of small businesses still maintain significantly offline operations. A new study from Wakefield Research and Concur shows that up to 84% of small businesses still use manual processes to run their daily tasks. This is relatively high considering that the world has greatly become digitalized. Today, automated systems are easily available, often at reasonable cost. It may be cool sending a handwritten note to appreciate faithful clients; but scribbling your invoice on a piece of paper could leave you vulnerable to errors.

Do you own a small business that functions relatively manually? It is probably time to consider upgrading to an automated system for simple processes. Manually running your business is not the worse idea on earth. However, it can add up to a lot of stress entering data into a log file or Excel spreadsheets. Also, you risk making errors that could be devastating to the business. And if stress and the vulnerability to errors are not reasons enough to make you consider upgrading your business, think of all the time and energy spent, it adds up.

CoverWallet Awarded “Best InsurTech Solution” at Benzinga Global Fintech Awards

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CoverWallet is excited to announce that we were awarded the title of “Best InsurTech Solution” at this year’s Benzinga Global Fintech Awards! Thank you again to our customers, supporters and all of you that believed in us as we continue to reinvent how small business insurance is dealt with.

Each year, the Benzinga Global Fintech Awards showcases the companies with the most innovative technology, who are paving the future in financial services and capital markets. The competition was steep, but CoverWallet’s insurance management platform put us ahead of the pack.

Amongst this year’s set of respected judges were:

  • Mazy Dar, CEO of OpenFin
  • Matt Hatch, Partner & Americas FinTech Leader at Ernst & Young
  • Conor Moran, Enterprise Business Development Director at Foursquare
  • Tricia Rothschild, Chief Product Officer at Morningstar
  • Ed Skolarus, Chief Digital Officer of Investor’s Business Daily
  • Vicki Walia, Head of Digital Investment Solutions at Alliance Bernstein
  • Alexander Wong, Managing Director & Head of Venture Capital, D. E. Shaw

Our co-founder and COO, Rashmi Melgiri, accepted the award on behalf of the company.

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Since our launch in 2016, CoverWallet has been working to help small businesses across the nation to better understand, buy, and manage their insurance. Millions of small businesses in the U.S. face risks every day, and we at CoverWallet are proud to serve them through educational resources, simplified quoting, and our unique insurance management platform.

Check out CoverWallet and find the best insurance to protect your business. It just takes a few minutes to get a quote.

Unpredictability of Workers Compensation for Small Business Owners

 

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Broadly speaking, companies are responsible for their employees’ wellbeing at the workplace and in any other locations where the employee carries out job-related tasks. Given this, many states have passed laws that make workers compensation mandatory. The purpose is to reduce litigation related to work accidents and protect employees by requiring companies take workers compensation.

While workers compensation is valuable in various ways, one must realize that it can put a strain on companies, especially those that operate in certain industries where work-related incidents are more frequent. Add on top of this the unpredictability of insurance costs in states like New York, and businesses can be burdened even further. This issue should not be overlooked as entrepreneurship is a major engine for the economy and it is therefore desirable to create the proper conditions for businesses to grow and prosper.

CoverWallet Launches Scholarship!

CoverWallet’s Small Business Scholarship is aimed at students in undergraduate or graduate programs, as well as those students who will be attending such programs in the coming year.

Students must submit a short essay highlighting their favorite local business and the risks they face. We want students to take an entrepreneurial mindset and consider the challenges of running a business.

To determine your eligibility and apply, click here.

Top 10 Workplace Injuries & How to Protect Your Business

Workplace Injuries

Thousands of employees are injured while working every year, ranging from minor injuries to severe or life-threatening ones. In a recent workplace safety index, it was determined that businesses spend in excess of a billion dollars every week on disabling workplace injuries. These direct costs include worker’s compensation increases, medical expenses, and loss of wages.

As a business owner, it is your responsibility to provide a safe work environment for those you employ. Educating yourself on the most common types of workplace injuries and ways to prevent them is the first step to making that responsibility a reality.

If a Small Business Employee Gets into an Accident, Who Has to Pay?

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Business owners are generally not alright with having to pay the tickets their employees get when driving a company vehicle. Unless there is a written agreement in place, the business may have to pay the ticket if it was issued against the company’s vehicle. On the other hand, if a speeding ticket was issued against the driver, then the driver would generally have to pay it.

Who is liable for an accident?

If an accident occurs when an employee is driving a company car, it’s key from an insurance perspective to establish which party was liable. A core part of this is determining if the employee act within the scope of employment. In other words, did the employee get into an accident while taking care of business related issues or was he driving the car for his own personal use?

Nebraska Considering Workers Compensation Opt-Out, Though Significant Value to Businesses

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No matter how diligent and careful you are as an employer, if you have employees working for your business then there is always the risk of someone suffering from a work-related illness or injury. You can avoid these nasty unforeseen events costing you large sums of money by taking out a good Workers Compensation insurance policy.

Workers Compensation insurance helps to ensure that employees who are injured at work or fall ill due to the nature of their work receive wage compensation and have their medical bills covered, thus saving employers from potentially expensive lawsuits. The insurance is compulsory in most U.S. states, though requirements vary by number of employees and industry. A bill to give businesses the right to opt out is currently under consideration in Nebraska.

The Largest Property and Casualty (P&C) Insurers in the U.S.

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The insurance market is so large right now, it’s probably a bit hard to get a real grasp of just how ridiculously huge it is. The U.S. insurance market in particular is the largest in the world, with annual revenue that hit a whopping $1.2 trillion in 2011 and has continued to exceed that benchmark annually. For perspective: the entire U.S. GDP is around $19.4 trillion. If the U.S. insurance market were its own country, it would be 14th or 15th largest country in the world, jockeying for position with Spain.

Who are the top players in this arena? The National Association of Insurance Commissioners highlights some interesting P&C industry insights in its breakdown of market share by group and state. The American International Group (AIG), for example, has over $450 million more direct premiums written for fire insurance than any competitor, while maintaining the number 1 spot in that category in nearly half of all U.S. states. Which is to say, if anyone’s looking for fire insurance, they’re quite often going with American International Group. Certainly impressive for a company founded in China in 1919.

Only 29% of Business Have Adequate Cyber Insurance, Though Data Breach Cost $36K

Data breach insurance

With the global cost of cyber crime estimated to be between $375 million and $575 million annually, cyber insurance is big concern for today’s businesses (1). But the cyber insurance industry is still relatively new and many businesses are without adequate coverage against data breaches and other cyber risks.

If your business accepts credit cards and online payments or deals with sensitive personal data, then it really needs to mitigate the risks associated with data storage by investing in a tailored cyber insurance policy. Risks come not just from computer hackers but also from natural disasters (which can wipe out databases) and human error.

But research by the Council of Insurance Agents and Brokers has shown that only around 29% of US businesses have proper cyber insurance coverage. Even among the big companies coverage is low, with only 40% of Fortune 500 companies having a cyber insurance policy in 2015. This is despite the fact that 43% of companies have experienced a data breach, according to the Ponemon Institute.

What Small Business Owners Can Learn from Chipotle’s Data Breach

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Chipotle is no stranger to the public spotlight. The popular food chain spent the past eighteen months trying to rebuild trust with their customers after a series of food safety scares, including an E. Coli outbreak. Just when they were starting to see their bottom line move in a positive direction, Chipotle has once again made headlines.

On Tuesday, April 25, 2017, Chipotle released a statement on their website notifying customers of a potential data breach. According to their official statement,

“We want to make our customers aware that we recently detected unauthorized activity on the network that supports payment processing for purchases made in our restaurants.”

They go on to encourage customers to review their credit card statements for any suspicious behavior. Those that need to be concerned include customers that purchased food using a credit card at one of their locations between March 24, 2017, through April 18, 2017. The biggest concern these customers face is that a hacker potentially stole their credit card information.