FAPEO is Right Around the Corner!

FAPEO’s annual business meeting is next Wednesday (8/4).

Click here to access the agenda. If you haven’t registered yet, you can email Suzanne Hurst at suzanne@helpmembers.org

In addition to the important legislative updates, we are certain that cyber security for PEOs will be a hot topic. Below is an overview of how we at Libertate look at cyber coverage. We will be available at FAPEO and would love to discuss further.

Paul HughesSharlie ReynoldsDavid Burgess
321.217.7477305.495.5173321.436.8214
phughes@libertateins.comsreynolds@libertateins.comdburgess@libertateins.com  

Parent Company of PEO Carrier Key Risk Reports Another Strong Quarter!

Kudos to our friends at W.R. Berkley for a stellar Q2! So happy they are a part of our PEO community.

W.R. Berkley Corp. reported net premium growth exceeding 27 percent and a combined ratio under 90 for the 2021 second quarter, positive results the commercial lines insurer and reinsurer attributed to rate adequacy and an improving economy.

Consolidated net premiums written during Q2 surpassed $2.2 billion, up from $1.7 billion in the 2020 second quarter.

The company booked net income of more than $237 million in Q2 versus $71.2 million a year ago.

Additionally, net investment income jumped nearly 97 percent to $169.2 million during the quarter.

The company said that its rate increases continue to outpace loss costs, with new products also helping to achieve or exceed its targeted rate levels. During the quarter, W.R. Berkley focused on exposure growth and business expansion, and it said the strategy should help lead to additional underwriting profits down the line.

W.R. Berkley’s consolidated combined ratio was 89.7 during the quarter, compared to 98.7 a year ago.

W.R. Berkley even produced gains for workers’ compensation, which had average rate increases of just under 10 percent.

Commercial auto and casualty reinsurance also saw large premium increases. Professional liability was among the largest gainers, jumping to $287 million in net premiums written during Q2, versus $174.2 million the year before.

Current accident year insurance losses from catastrophes, including COVID-related losses, landed at $36.8 billion during the quarter, improved from $114 million in the 2020 second quarter. Reinsurance and monoline excess losses were just under $7.2 million, compared to $31.8 million a year ago.

Source: W.R. Berkley

This is Why You Should Double Check Your Cyber Insurance Policy

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Whether a business is in healthcare, accounting, legal, real estate, manufacturing, etc., most of a business’ important assets are digital. (Government municipalities are included too.) To make matters complicated, it’s very common for these digital assets to be stored in various systems and locations, intertwined with a third party’s digital information. With so many opportunities for disaster, steps must be taken to insure this critical information.

Cyber insurance is a new frontier that is rapidly evolving as the industry gets its bearings. Many companies are finding that their current cyber policies have very minimal coverage in case of a cyber breach, and the majority of these policies will not come close to providing the necessary breach coverages to the business or municipality.

When looking at your existing or new cyber policy, it’s important to consider these types of coverages:


As we have come to realize, the idea that security starts and ends with the purchase of a pre-packed firewall is simply misguided

Art Wittman

1. Privacy Breach Notification

Some reports estimate the notification and credit monitoring costs alone are over $100 per record, so if you had 1,000 compromised records, this alone could cost $100,000 or more.

2.Data Loss Restoration

Believe it or not, many large insurance carriers have policy exclusions for the replacement and restoration of data, so be very careful in this area when reviewing your policy.

3. Privacy Liability

This covers for the theft or loss of private information related to customers and other third-party information that is in your care.

4. Regulatory and PCI Defense

Many industries are under strict regulatory control, and breaches may result in fines and other penalties from these regulatory agencies.

5. Public Relations

If an enterprise has a breach, the bad press they receive can do significant long term reputational damage and can also be used by competitors to their advantage. This coverage will help hire a public relations firm to mitigate the reputational damage your name brand might incur.

6. Cyber Crime

If your organization is threatened with various cyber threats such as malicious code that will result in financial loss or data loss, this coverage is needed for the reimbursement of the costs associated with these threats.

7. Defense and Settlement costs

A breach affecting a lot of customers may result in lawsuits and financial settlements, so insurance coverage is needed to offset these potentially enormous costs.

8. Consulting and Forensic Fees

If a breach does occur, the upfront investigative process will require a lot of professional expertise and a lot of money, and this specific coverage will offset these significant costs.

9. Business Continuity

If a hack causes your business to lose income, this coverage will reimburse you for these losses.

It takes 20 years to build a brand or company reputation and a few minutes within a cyber incident to ruin it

Stephane Nappo

For a free cyber insurance policy evaluation, contact Libertate Insurance today at 813-367-7574 or email me, James Buscarini at jbuscarini@libertateins.com.

Our professionals are happy to review and discuss your firm’s existing cyber liability insurance policy and the relation to your unique business requirements, needs and cyber coverage. Our goal is to help your PEO and client companies navigate the cyber liability insurance landscape and identify potential vulnerabilities that could be exposed based on your existing technology network and infrastructure. Finally, we want to make sure that in the event of a ransomware attack, business email compromise or phishing expedition your firm has adequate coverage in each of the areas that you might be vulnerable to be targeted in.

AM Best Assigns Credit Rating to Sunz Insurance Company

Congrats to our friends at Sunz for the A- (Excellent) rating!

Sunz Insurance

OLDWICK, N.J., July 16, 2021–(BUSINESS WIRE)–AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to SUNZ Insurance Company (SUNZ) (Bradenton, FL). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect SUNZ’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

SUNZ was formed in 2005 and primarily writes high deductible worker’s compensation coverage utilizing its proprietary technology-driven platform focused on collateral management for its medium and small business clients.

SUNZ’s balance sheet assessment is supported by its risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio (BCAR) in current periods, projected future scores, and under stress scenarios. SUNZ balance sheet assessment also considers the capital contributions in support of recent premium growth, improved reserving patterns exhibited during the recent five-year period, its comprehensive reinsurance program diversified among highly rated participants, and a conservative investment portfolio that matches assets with liabilities.

SUNZ’s operating performance is assessed as adequate as evidenced by average pre-tax return on revenue measures that trail AM Best’s workers’ compensation industry composite over the recent five- and 10-year timeframe. SUNZ’s business profile assessment is limited as 49.9% of premiums are written in two states, California and Florida, when considering both direct and assumed premiums. Operating as a single line workers’ compensation insurer, SUNZ’s limited business profile exposes the company to the potential legislative, regulatory or judicial changes occurring within these states. SUNZ’s ERM approach is considered appropriate for the scale, scope and complexity of the organization.

While positive rating actions are unlikely over the near term, positive rating actions could be taken on SUNZ’s ratings should operating performance improve and be sustained at a level that is in line with peers with stronger operating performance assessments.

Key factors that could result in negative rating actions on SUNZ’s ratings and outlooks include a weakening in operating earnings to a level that is not supportive of the adequate operating performance assessment.

Negative rating actions could occur should adverse reserve development or strong premium growth result in a weakening in risk-adjusted capitalization that falls short of supporting the very strong balance sheet assessment.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210716005296/en/

Contacts

Gordon McLean
Senior Financial Analyst

+1 908 439 2200, ext. 5304
gordon.mclean@ambest.com

Robert Raber
Director
+1 908 439 2200, ext. 5696
robert.raber@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

EEO-1 Deadline For 2019 & 2020 Now Extended to August 23, 2021

Employers now have some extra time to submit equal employment opportunity (EEO-1) workforce data from 2019 and 2020, the U.S. Equal Employment Opportunity Commission (EEOC) announced on June 28, 2021. These reports were previously due by July 19, 2021. Employers now have until Aug. 23, 2021, to complete their submissions.

The EEOC’s collection of this data, the portal for which opened on April 26, 2021, had been delayed numerous other times due to the coronavirus pandemic. Under Title VII of the Civil Rights Act, the EEO-1 Report is usually due by March 31 every year.

EEO-1 Reporting Background

The EEO-1 Report is an annual survey that requires certain employers to submit data about their workforces by race or ethnicity, gender and job category. The EEOC uses this data to enforce federal anti-discrimination laws.

Employers Subject to EEO-1

Reporting In general, a private-sector employer is subject to EEO-1 reporting if it:

  • Has 100 or more employees;
  • Has 15-99 employees and is part of a group of employers with 100 or more employees; or
  • Is a federal contractor with 50 or more employees and a contract of $50,000 or more.

Employers that are subject to EEO-1 reporting now have until Aug. 23, 2021, to submit data from 2019 and 2020.

Employer Action Items

Employers subject to EEO-1 reporting requirements should ensure that they complete their EEO-1 submissions by Aug. 23, 2021. These employers should also review the EEOC’s home page and website dedicated to EEO data collections for additional information.

Important Dates

  • July 19, 2021: Prior deadline for submission of 2019 and 2020 workforce data.
  • Aug. 23, 2021: New deadline for employers subject to EEO-1 reporting to submit 2019 and 2020 workforce data.
  • March 31, 2022: Deadline for submission of EEO-1 data from 2021.

CYBER RISKS & LIABILITIES – Penetration Testing Explained

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Keeping workplace technology up and running is vital to any organization’s success. While this task seems feasible, it’s growing harder and harder each year as cybercriminals expand their reach.  It’s not enough to simply protect workplace technology with software and security protocols. It’s also critical for your organization to test the overall effectiveness of these protocols on a regular basis. That’s where penetration testing can help.

Essentially, penetration testing consists of an IT professional mimicking the actions of a malicious cybercriminal to determine whether an organization’s workplace technology possesses any vulnerabilities and can withstand their attack efforts. Conducting a penetration test can help your organization review the effectiveness of workplace cybersecurity measures, identify the most likely avenues for a cyberattack and better understand potential weaknesses.

Review this guidance to learn more about what penetration testing is, the benefits of such testing and best practices for carrying out a successful test within your organization.

What Is Penetration Testing?


Put simply, penetration testing refers to the simulation of an actual cyberattack to analyze an organization’s cybersecurity strengths and weaknesses. This testing usually targets a specific type of workplace technology, such as the organization’s network(s), website, applications, software, security systems or physical assets (e.g., computers and smart devices). Penetration testing can leverage various attack methods, including malware, social engineering, password cracking and network hacking, among others. Generally speaking, penetration testing is often performed by a professional from a contracted IT firm who is not associated with the organization being assessed in any way. This helps the cyberattack simulation seem as authentic as possible. Penetration testing is typically either external or internal in nature. The primary differences between these forms of testing are as follows:

  • External penetration testing requires the IT expert to attack an organization’s external-facing workplace technology from an outside perspective. In most cases, the IT professional won’t even be permitted to enter the organization’s physical establishment during external penetration testing. Rather, they must execute the cyberattack remotely—often from a vehicle or building nearby—to imitate the methods of an actual cybercriminal.
  • Internal penetration testing allows the IT expert to attack an organization’s internal-facing workplace technology from an inside perspective. This form of testing can help the organization understand the amount of damage that an aggrieved employee could potentially inflict through a cyberattack. 

In addition to these testing formats, there are also two distinct types of penetration tests. How much information an organization provides the IT professional prior to the cyberattack simulation will determine the penetration test type. Specifically:

  • An open-box test occurs when the IT expert is given some details regarding the organization’s workplace technology or cybersecurity protocols before launching the attack.
  • A closed-box test occurs when the IT expert is provided with no details other than the organization’s name before conducting the attack.

Ultimately, the penetration testing format and type should be selected based on the particular workplace technology elements or cybersecurity measures that an organization is looking to evaluate.


Benefits of Penetration Testing

Penetration testing can offer numerous advantages to your organization, including:

  • Improved cybersecurity evaluations—By simulating realistic cyberattack situations, penetration testing can help your organization more accurately evaluate its varying security strengths and weaknesses—as well as reveal the true costs and of any security concerns.
  • Greater detection of potential vulnerabilities—If any of your workplace technology or other cybersecurity protocols fail during a penetration test, you will have a clearer picture of where your organization is most vulnerable. You can then use this information to rectify any security gaps or invest further in certain cyber initiatives.
  • Increased compliance capabilities—In some sectors, organizations are legally required to engage in penetration testing. For example, the Payment Card Industry Data Security Standard calls for organizations that accept or process payment transactions to execute routine penetration tests. As such, conducting these tests may help your organization remain compliant and uphold sector-specific expectations.
  • Bolstered cybersecurity awareness—Mimicking real-life cyberattack circumstances will highlight the value of having effective prevention measures in place for your employees, thus encouraging them to prioritize workplace cybersecurity protocols.

Penetration Testing Best Practices

Consider these top tips for executing a successful penetration test within your organization:

  • Establish goals. It’s crucial for you to decide what your organization’s goals are regarding the penetration test. In particular, be sure to ask:
  • What is my organization looking to gain or better understand from penetration testing?
  • Which cybersecurity threats and trends are currently most prevalent within my organization or industry? How can these threats and trends be applied to the penetration test?
  • What specific workplace technology elements or cybersecurity protocols will the penetration test target?
  • Select a trusted IT professional. Consult an experienced IT expert to assist your organization with the penetration test. Make sure to share your organization’s goals with the IT professional to help them understand how to best execute the test.
  • Have a plan. Before beginning the penetration test, work with the IT expert to create an appropriate plan. This plan should outline:
  • The general testing timeframe
  • Who will be made aware of the test
  • The test type and format
  • Which regulatory requirements (if any) must be satisfied through the test
  • The boundaries of the test (e.g., which cyberattack simulations can be utilized and what workplace technology can be targeted)
  • Document and review the results. Take detailed notes as the penetration test occurs and review test results with the IT expert. Look closely at which cybersecurity tactics were successful during the attack simulation and which measures fell short, as well as the consequences of these shortcomings. Ask the IT professional for suggestions on how to rectify security gaps properly.
  • Make changes as needed. Based on penetration test results, make any necessary adjustments to workplace technology or cybersecurity protocols. This may entail updating security software or revising workplace policies.
  • Follow a schedule. Conduct penetration testing at least once every year, as well as after implementing any new workplace technology.

If you are a Risk Manager or Principal of a PEO and want to learn how you could help protect your client company’s interests through our affordable Master Cyber Liability program, eMail James Buscarini, Fl License #A036520 at jbuscarini@libertateins.com to find out more. The Master Cyber program is written through Axis, an A rated carrier, 250K in coverage, no underwriting, and a revenue generator!

Preventing Turnover Post-pandemic

The wake of COVID-19 leaves in its path a tattered and disheveled global supply chain in nearly every industry sector imaginable.  Everything from high end computer processors to basic building supplies like lumber to commodities as fundamental as toilet paper have been impacted.  As the vaccinated slowly begin to emerge and life resumes, a new supply chain shortage emerges – that of human capital. 

The need for a capable and willing workforce is evident in every corner of commerce. One impactful way for an employer to address this need is to retain the employees they already have.  To this end, I share with you the following HR Insights article published by Zywave on Preventing Turnover Post-pandemic. 

A pdf of the article can be downloaded by clicking here. 

Preventing Turnover Post-pandemic

The COVID-19 pandemic is finally getting under control. As more Americans get vaccinated, states are gradually lifting restrictions, and life is returning to pre-pandemic normalcy. Finally, individuals can get to the tasks they’ve been postponing for more than a year. Unfortunately for employers looking to retain employees, some employees are now ready to find new jobs.

Current Job Market Outlook

Turnover is a common occurrence throughout any given year. However, during the COVID-19 pandemic, year-over-year turnover trends drastically reduced. Workers instead clung to their jobs as a way to maintain financial security, having seen countless others get furloughed or laid off.

Now, as the economy opens back up, employers are pushing for employees to return to the workplace. But, a significant number of employees are unwilling to return to the status quo that was established pre-pandemic.

Instead, they are taking stock of their current positions and contemplating what they truly want out of their jobs. For some, the most direct path toward their goals is to find a new employer.

That’s why experts are predicting a “turnover tsunami” coming in the latter half of 2021; all the turnover that would typically take place in a given year is expected to come virtually all at once.

What Employees Want Post-pandemic

Each organization is unique, and its employees may have varying opinions about what’s most important to them. However, workplace survey data from the past year illuminates some commonalities between worker desires across industries. The following are some of the most coveted changes workers are looking for post-pandemic.

Remote or Hybrid Work Models

Many employees were forced to work from home at the start of the pandemic. As businesses reopen, employees are reluctant to return now that they’ve tasted greater flexibility and autonomy.

In fact, 47% of employees said they would leave their current jobs if their employers forced them back into the workplace, according to an Envoy survey. Additionally, 41% of employees said they would take a job with a slight salary cut if it meant having a hybrid work model (working some days in the office, others from home).

Given this and other data from countless surveys conducted in the past year, it’s apparent that employees want at least some remote work opportunities. And they are willing to leave their current employers to get it.

While remote or hybrid work is perhaps the most desired workplace perk at the moment, it’s not all that employees want.

Protection From Burnout

The COVID-19 pandemic has left many employees feeling burned out and overworked. According to an Indeed survey, 52% of employees are experiencing burnout, and 67% say burnout has increased during the pandemic.

Worse yet, now that businesses are reopening in full force, employee workloads are likely to increase rather than reduce. This increase is spurring employees to lobby for greater mental health benefits, time off and other resources for reducing stress levels.

Greater Compensation

Compensation has been an employee motivator well before the COVID-19 pandemic, but it’s particularly salient now. Across the country, the most recent example of this has been among fast food and retail workers. These segments have been working throughout the pandemic amid strict constraints, reduced staffing and elevated dangers.

Now, many industry workers are demanding better pay and benefits as compensation for their continued efforts—even walking out or quitting when their efforts are disregarded. In fact, 35% of surveyed employees said they would leave their current jobs for better compensation and benefits, according to an Achievers Workforce Institute report.

Turnover Prevention Considerations for Employers

At this point, it’s clear that a significant number of employees are feeling restless in their current roles. According to that same Achievers Workforce Institute report, only 21% of employees feel very engaged at work. Additionally, nearly half of respondents (46%) said they feel less connected to their workplace now than at the start of the COVID-19 pandemic.

To combat these trends and avert a “turnover tsunami,” employers will need to look inward toward their unique employee populations. This inquiry may include directly asking employees about their current mindsets (i.e., whether they’re considering quitting) and what concessions would make them stay with the organization.

Generally, employers can also consider implementing some of the changes employees are looking for, such as:

  • Providing remote or hybrid working arrangements
  • Expanding employee assistance programs to help with mental health and burnout
  • Increasing compensation or bonuses
  • Having managers meet more frequently with employees about engagement levels and ways to improve them

While these methods may be sufficient for the majority of workplaces, they are not silver bullets. Even higher compensation may not be enough to prevent turnover if other problems exist. That’s why employers should consider surveying employees about their individual opinions. Doing so can help identify unforeseen opportunities and potentially give employers ideas for improving retention without breaking the bank.

Reach out to Libertate Insurance Services, LLC for additional retention strategies.

This HR Insights is not intended to be exhaustive nor should any discussion or opinions be construed as professional advice. © 2021 Zywave, Inc. All rights reserved.