No business is immune to cyber risk

In the past six months, the United States has seen cyberattacks against hospitals, America’s biggest gasoline pipeline, a global meat supplier, and countless other public entities, manufacturing firms, and organizations supplying critical infrastructure.

The threat landscape has evolved to a point where really any company operating a network system or reliant on a network system to function is now at risk, according to Shannan Fort (pictured), head of cyber at McGill and Partners. In other words, no business is immune to cyber risk.

Bad actors have grown far more emboldened and sophisticated in recent years, constantly changing their tactics and finding new ways to monetize their illegal access to corporate networks. In recent years, they’ve shifted their focus from stealing and selling personally identifiable information (PII), to planting ransomware on corporate networks and demanding payment for data de-encryption.

Since 2017, hackers have achieved tremendous success by weaponizing ransomware, to the extent that they are now demanding multi-million-dollar ransoms in cryptocurrency from large organizations. There has also been an explosion in ransomware-as-a-service (RaaS), a subscription-based model sold on the dark web, which enables hackers to use already-developed ransomware tools to execute ransomware attacks.  

“As the focus has shifted to ransomware, data/financial information aggregators (like financial institutions, retail, healthcare) are no longer the only primary targets of threat actors,” Fort told Corporate Risk and Insurance. Today, all companies with a corporate network are at risk, but in particular, hackers seem to be upping their antics against manufacturing firms, public entities and critical infrastructure.

“These organizations tend to be reliant on outdated network systems, which are often decentralized and require a significant number of endpoints,” Fort explained. “All of these factors can magnify the impact of an issue and bring the business to a halt. The very nature of their operations and reliance of third parties (whether that’s consumers or other businesses) on their business means functionality is absolutely paramount and must be restored immediately. This combination can make them lucrative targets.”

There are lot of steps that businesses, regardless of size or sector, can and should be taking today to reduce the potential for a cyber incident. Best practice cyber risk mitigation may look different depending on the industry, but there is a minimum standard that all companies should strive to hit, according to Fort.

“There is an expectation that companies protect their most critical assets, however there is some flexibility as to how this can be done and any decisions should be made with the system configuration and business need in mind,” she said. “At minimum, there is an expectation that companies are focusing on recovery through robust backup procedures and prevention through tools like multifactor authentication (MFA), but it’s important to stress network security must be uniquely configured to the organization for it to be most effective.”  

Companies with strong cyber risk management practices will earn the favor of underwriters in a dramatically hardening cyber insurance market. Today, MFA is almost a pre-requisite for coverage, and other practices like securing remote desktop protocol (RDP), having remote data back-ups, and engaging in regular employee training are also important considerations. 

“It’s all about prevention, preparation, response and mitigation,” said Fort. “Organizations need to show a clear understanding of the threat and a detailed, tested plan for how they are managing the threat, and how they will respond to an incident.  They must be able to clearly articulate the protections they employ and their response capabilities.“Clear and constant communication is needed between all stakeholders: the insured, the risk manager, the broker, and the underwriter. This market is rapidly evolving, and every part of this chain must have a clear picture of what is on the horizon. Risk managers need to know what to expect from the market and carriers need to know how companies are continuing to keep security and protection at the forefront. The broker is key in the flow of information both ways.”  

Source : insurancebusinessmag.com

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Revealed – The most and least expensive US states for renters' insurance

The number of renters in the US taking out insurance has been rising steadily in recent years, according to data gathered by the Insurance Information Institute (III).

In its most recent consumer poll conducted in 2020, the III’s figures showed that 57% of all tenants in the country have purchased renters’ insurance – the highest ever recorded in the biannual survey and more than double those in 2012 when the institute began compiling the metric. The 15% jump between 2018 and 2020 was also the largest two-year increase recorded by the organization.

California topped all states hosting the highest number of insured renter households with more than 3.8 million. The state was followed by New York with about 2.6 million and Texas with 2.3 million. Florida, with over 1.6 million, and Illinois, hosting almost 800,000 covered tenants, rounding up the top five.

The US is home to nearly 45 million tenant-occupied households, according to the latest census, and based on this figure, the III’s survey findings indicate that more than 25 million of these households carry renters’ insurance.

But despite the high number of insured homes, a separate study conducted by insurance giant Assurant has found a glaring knowledge gap about what tenants believe were covered by this type of policy.

In its 2019 consumer insights benchmark, the insurer revealed that of the 50% of respondents who had bought renters’ insurance, a whopping 97% were unaware that they would be protected if their dog bites someone and 81% did not know that a rug ruined by an overflowing toilet would be covered. About 84% were also unaware that renters’ insurance would pay out if a guest trips and breaks a bone while inside the rental property, and 57% did not know that coverage included temporary housing if a home was made uninhabitable by a fire in their neighbor’s apartment.

Moreover, of the respondents who did not have renters’ insurance, many said that the coverage was not offered to them, while some assumed the premiums would be too expensive. One in five of those surveyed also believed that the landlord would take the blame if something went wrong in their units and close to a third of respondents had underestimated replacement costs if an incident did occur.

What does renters’ insurance cover?

Most renters’ insurance policies offer four basic types of coverages, according to NASDAQ-listed personal finance company NerdWallet. These are:

Personal property: Covers personal belongings such as clothing, smartphones, furniture, jewelry, and other household items lost due to specified perils. These events include fire, hail, explosion, civil commotion, damage caused by vehicles, smoke, vandalism, theft, accidental discharge of water, volcanic eruption, and freezing.

Liability: Pays out for lawsuits and other legal expenses stemming from injuries to other people while on the rental property. Also covers damages to other people’s property that the policyholder is responsible for.

Loss of use: Covers hotel stays, restaurant meals, and other living expenses should the policyholder need to relocate elsewhere because the rental property is under repair.

Medical payments: Often grouped with liability, this coverage pays out for a guest’s injuries on the property, regardless of who is at fault.

Apart from these standard inclusions, renters can customize their policies with endorsements that add more coverage but often at an extra cost. These include:

Replacement cost: Pays the cost of replacing lost items with new ones.

Scheduled personal property: Covers items that are worth more than the policy’s limit. These can include expensive jewelry, watches, and artworks.

Identity theft: Covers expenses associated with identity theft, including credit monitoring services, legal fees, and document replacement.

Water backup: Pays out for damage if the property’s sink, toilet, or other drain backs up, sending water gushing into the unit.

Pet damage liability: Covers clean-up or repair costs for damages caused by pets.

What does a renters’ insurance policy exclude?

Just like other policies, renters’ insurance has exclusions. Here are some items that are not included in this type of coverage.

The physical building, which is covered by landlord’s insurance.

Flood damage, which can be covered by purchasing a separate flood insurance.

Earthquake damage.

Bedbugs, mice, or other infestations.

Roommate’s belongings, unless the policy is shared, which not all insurance companies allow.

Vehicular damage or car theft, which are covered by auto insurance.

How much does renters’ insurance cost in the US?

To find out which states have the most and least expensive renters’ insurance premiums, NerdWallet gathered and analyzed 2021 rates for all zip codes and carriers in all 50 states and Washington D.C. The firm then based the quotes on a policy for a 30-year-old tenant living in a two-bedroom apartment with $30,000 in personal property coverage, $100,000 in liability coverage, and a $500 deductible. The hypothetical tenant was also a non-smoker and has a good credit history.

Based on NerdWallet’s data, the average renter’s insurance premiums in the US cost $168 annually or about $14 monthly. Rates can be higher or lower depending on the state. Here are the states where premiums cost the most and the least, according to the personal finance firm’s analysis. The figures are up to date as of December 2021

Source: insurancebusinessmag.com

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You may not have to pay the IRS back if you got too much in child tax credit payments

This tax season, millions of American families who received advance child tax credit payments are calculating what they got in order to submit their 2021 returns.

Some may be worried that they were sent more money than they were owed in the monthly payments from July to December, either due to income increasing in 2021 or incorrectly claiming a child that wasn’t eligible.

Luckily, many won’t have to repay any of the benefit.

Details of the enhanced credit

The expanded child tax credit was part of the American Rescue Plan, signed by President Joe Biden last year. For the 2021 tax year, the credit increased to $3,000 from $2,000 for dependents ages 17 and younger. It also gives an additional $600 for children under the age of 6.

The full enhanced credit is available to all eligible children in families with adjusted gross income of less than $75,000 for single parents and $150,000 for a married couple filing jointly. It ends for individuals earning $95,000 and married couples filing jointly making $170,000, though they’d still be eligible for the regular child tax credit.

Most families got the first half of the credit in advance monthly payments from July to December, and now must file 2021 tax returns to claim the second part of the benefit.

“There will be a reconciliation,” said Trenda Hackett, CPA and technical tax editor of the tax and accounting business at Thomson Reuters. “There could be some instances where your payment was in excess of what you were actually allowed on your tax return.”

Who is fully protected

Many families are eligible for some form of repayment protection in place at the IRS that would shield them from a bill even if they were overpaid in monthly child tax credit checks.

Those married and filing jointly or filing as a qualified widow will be fully protected from repayment if their 2021 adjusted gross income is $60,000 or less. For those filing as head of household, the threshold is $50,000 and for those who are single filers or married and filing separate returns, it is $40,000.

Taxpayers who made more than those adjusted gross income amounts may still be able to get partial protection from repayment if they got too much through the advance child tax credit last year.

Repayment protection ends when 2021 income hits $120,000 for those married filing jointly or widowers, $100,000 for heads of household and $80,000 for single filers or those who are married and filing separately.

In addition, to qualify for this protection, filers must have had their main home in the U.S. for more than half of 2021.

A lower refund if you do owe

Even if you did receive more of the child tax credit than you were eligible for last year and don’t qualify for repayment protection, you may not owe the IRS.

Instead, it’s likely that you’ll get a much smaller tax refund than you’re used to, either because you aren’t eligible for the second half of the credit or you’re getting less than you thought you would.

If the remaining credit you’re able to claim doesn’t offset your tax liability, you may have a bill from the IRS.

To make sure you get the right amount of the credit back, families who got the benefit should look out for Letter 6419 from the IRS. This letter will help them reconcile what they received last year and claim the correct amount this year. If the letter is incorrect or you didn’t receive it, you can use the information available on the agency’s online portal to show what payments you got.

The IRS also recommends that people file electronically this year and select to have any refunds direct deposited to avoid any delays in processing.

By : Carmen Reinicke

Source : cnbc.com

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