10 minute read
DON'S DISCUSSION
DON'S DISCUSSION IA&B Legal & Corporate Affairs Director Don Bankus Are you a member with a question? Contact Don to find the answer at 800-998-9644, ext. 603 or DonB@IABforME.com.
QUESTION:
If my employees sign a waiver, does that eliminate my agency’s COVID-19 liability?
ANSWER: As businesses, including independent insurance agencies, bring staff back into their offices, the concept of asking employees to sign a COVID-19 liability waiver is becoming more common.
WHAT IS A LIABILITY WAIVER? When we conjure up the concept of a liability waiver, we typically think of a pre-event liability waiver. This is an agreement between parties where the participant is advised beforehand of inherent, and usually obvious, risk associated with participating in an activity. The participant acknowledges the risks (e.g. attending a baseball game, while acknowledging the risk of being hit by an errant baseball) and waives his or her right to sue the host for injuries and damages sustained as a result of said willing responsible for any errors or omissions regarding any statements made in this document,
participation. In the case of the employer/employee relationship, the employer would be the host and the employee the participant.
As your staff returns to the physical office (and the regular flu season couples with the pandemic), you may entertain requesting or requiring employees to sign a liability waiver. Such a waiver may include an acknowledgement and/or waiver language for employees to sign wherein they state they are not exhibiting COVID-19 symptoms, have not tested positive for the virus or been in contact with anyone who has, will seek immediate treatment and notify their employer if they begin to exhibit symptoms, and will not hold their employer liable if they contract COVID-19 at the office.
While it would be beneficial for an agency to have written policies and procedures in place outlining applicable COVID-19 protocols, liability waivers between employers and employees are likely not enforceable, primarily due to public policy considerations. And to date, the jury is still out on COVID-19 waivers since they have not been tested in the courts.
In addition to the above, requesting employees to sign a COVID-19 waiver could have unintended consequences, such as encouraging employees to refrain from returning to work (good help is hard to find). A more positive approach would be to focus on highlighting the measures the agency has FINAL THOUGHTS While waivers may not be the answer, policies and procedures outlining COVID-19 waivers and relating to remote work can assist in the creation of understanding and continuity in the “workplace.” To that end, our HR consultant, Mosteller & Associates, has developed a remote worker agreement and related tools, available to members for a nominal fee. Visit IABforME.com/remote_work or call 800-998-9644, option 4 to learn more.
This document is not a legal opinion and should not be relied upon as such. The intent of this document is to provide a general background regarding the topic or topics discussed, not to provide legal advice. Producers and agencies should consult an attorney regarding specific situations and specific questions with respect to the topic or topics covered in this document. Neither the Insurance Agents & Brokers nor any of its employees shall be taken to ensure the safety and well-being of its employees.
nor any errors or omissions regarding any statutes, regulations, court rules, and/or any other government documents cited in this document.
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ONLINE EXPOSURES + PANDEMIC = FEEDING FRENZY FOR SCUMBAGS
By Kevin C. Amrhein, CIC
Natural disasters like hurricanes often bring out the best in humanity. Scenes of community – neighbors and strangers alike – coming together to help each other. Beautiful. Hopeful. Inspiring.
And then there’s those guys … ... scumbags who ooze out of their caves to feast on chaos, fear, and confusion. Unfortunately many of these lowlifes are exceptional at two things: 1) hunting their prey (victims of post-disaster scams often are specifically targeted – not random), and 2) convincing their prey of the scam’s validity (e.g. “your insurance company mandates a preclaim inspection performed by an independent contractor like myself. Cash only, please.”)
Having personally experienced several hurricanes, I thought I’d seen the worst humanity can produce … and then came a pandemic.
Since things really started going south in early 2020, authorities have reported significant spikes in online/ cybercrime activity. No demographic is immune, but data show that small businesses seem to be a favorite target of these slimeballs. A pandemic is the perfect recipe for such crimes, and knucklehead criminals know it.
• Communications have shifted almost entirely online.
• Employees often are accessing company networks from remote/ vulnerable locations.
• Employees are distracted, sleepdeprived, and fearful of the future.
Translation: lack of focus.
• Businesses are seeking financial lifelines from governments/banks, and such transactions are handled electronically.
Good old-fashioned hackers are still out there using advanced technical skills to break through firewalls, steal stuff, and/or generally cause trouble (extortion threat, sabotage, etc.). Many cyber insurance policies are constructed to provide cover when vulnerabilities in networks are discovered and exploited, causing financial harm to the business (first-party loss) and possible harm to the business’s contact network (third-party). A review of the policy’s Insuring Agreement/s should help agents and insureds identify the reach of coverage.
Other online scams are not clearly addressed by standard cyber insurance policies. Such are perpetrated by losers who – through emails, inter-company communications, and even phone calls – disguise themselves as legitimate people or sources. Transactions are requested, approved, and poof …there goes the loot (typically currency or proprietary data).
Such crimes hit close to home. When I teach commercial insurance webinars, I ask the audience if they or their businesses have been the target of such scams, and a surprisingly high number of them respond “yes.” Several are honest enough to admit that they were tricked and victimized.
It’s true that sometimes, such crimes – often falling under the heading of social engineering or fraudulent impersonation – are made too easy by oblivious employees who take all unsolicited communications seriously, click on links, download attachments, and/or authorize transactions without a second thought. But such oblivion is fading as more employees are made aware of the need for diligence. What makes many scams so frightening is that they often involve an incredible level of sophistication, research, and, dare I say, talent. These jerks learn to write and even speak like people they know the victim will trust, re-direct legitimate emails and phone numbers away from their actual destinations, ask for difficult-to-trace rewards like gift cards or virtual currency, and then vanish into the wind.
By the time the transaction is questioned, it’s too late. Businesses that have cyber insurance (and an unfortunately high number don’t) may file a claim but learn acts stemming from such scams aren’t reached by that policy’s Insuring Agreement/s. Other cyber insurance policies may cite a voluntary parting or similar exclusion designed to remove coverage for crimes in which an insured – even unknowingly – was a participant.
WHAT EVERY COMMERCIAL LINES AGENT SHOULD DO
• First things first – emphasize risk management. Contact cyber and crime insurers for information about risk management/loss mitigation tools designed to assist insureds in avoiding such scams.
• Review the cyber policy to determine if it’s far-reaching enough to cover losses resulting from such scams.
• Ask the cyber insurer if an endorsement to cover such scams is available.
• Contact insurers for information regarding the availability of
Commercial Crime coverage forms which may respond to such scams.
• Review the commercial property insurance policy/BOP for information about such scams. Use this policy’s lack of respectable cover to encourage the insured about the importance of additional coverage. and/or fraudulent impersonation scams is available from an insurer, read it carefully. Such coverage may offer reduced limits and be subject to other conditions. For example, it may only respond if evidence shows advanced approval from another was first obtained before an employee initiated the transfer.
That’s all for now. Until the next round … cheers!
Kevin C Amrhein, CIC, is IA&B‘s education consultant. He works with our CISR and CIC programs, as well as our special topic seminars and live webinars. Catch him at one of our upcoming professional training offerings: IABforME.com/education.
AN HOUR WITH KEVIN
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ONWARD & UPWARD A MESSAGE FROM JASON ERNEST
I would like to personally congratulate our three inaugural Young Agent Award winners featured in this edition of Primary Agent. These are impressive individuals, who have dedicated themselves to both their agencies, and the insurance world as a whole. It is rewarding, and promising, to see.
It’s been over five years since IA&B created our Futures Program – a dedicated effort by IA&B to develop today's young agents into tomorrow's leaders. From young agent input and focus groups, specialized training, and ultimately our multiple Futures Conferences, we have tried to learn about the needs of this next generation, and then to deliver on those needs. These awards were a milepost for us when we started this program. We wanted to identify, meet, and work with young agents, to the point that we could then recognize a few of the standouts. This isn’t the end of the road, however. IA&B will continue our strong focus on the Futures Program.
As I have met hundreds of young agents over the past five years, I’ve been reassured that the perpetuation of the independent agency system is sound. I consistently see professional, personable, smart individuals who love what they are doing, while at the same time managing successful personal lives.
I’m often asked by these young agents what advice I’d give as they navigate this industry. I try to be consistent in my answer:
1. EDUCATE Never stop learning. This industry, as much as any other, is constantly changing and evolving. It is complicated and unique. A good insurance professional is always looking to stay on top of the industry and is always learning.
2. NETWORK Get involved with other agents. I have the pleasure of seeing a lot of networking that is a byproduct of IA&B events. Often, our members say it is the most valuable part. For young insurance professionals, I think it is critical. It allows you to share tips, trade knowledge, and sometimes commiserate.
3. GET INVOLVED Beyond networking with peers, get involved in the industry. IA&B can assist with this in several ways. The first is advocating for the industry. Become a part of our government relations committee, attend our annual national legislative conference, or work with your local legislator. We need a voice, and young professionals are perfect for that. Also consider being a volunteer for other IA&B opportunities – be it input groups, or ultimately serving on our boards of directors (which now have dedicated spots for young agents).
I’d be remiss for not giving sincere thanks to our partner carriers that have graciously sponsored the Young Agent Award. Our young agent initiatives have garnered a lot of attention and support from these carriers. It has been a collaborative effort, and I greatly enjoy when IA&B and the carriers come together to work for the common good of the independent agency channel. If you represent one of these sponsoring carriers, please be sure to thank them for their support.
Again, congratulations to our award winners and to all young insurance professionals out there. You are the future of this industry, and of IA&B, and it’s a bright one.
Jason Ernest, Esq. IA&B President & CEO
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