Author: AHI Group

Which States Use ZIP Codes as an Insurance Rating Factor?

Posted on by AHI Group

A ZIP Code is essentially a system of “zone” codes, traditionally used by the USPS (or United States Postal Service). The system was used to designate delivery points in the U.S. but has also been used in the insurance industry to help in pricing auto insurance premiums.

However, there is much debate over whether using ZIP codes is fair to drivers, especially those with otherwise clean driving records, and few to no claims, but who live in areas where their ZIP code has been associated with a higher risk of claims. Those drivers, who may never have been in an accident, could face higher rates simply due to where they live. In this blog post, we’ll examine how ZIP code influence car insurance rates and which states use ZIP codes to price auto insurance policies.

Why Do Insurers Use ZIP Codes as a Rating Factor?

When determining rates for drivers, car insurance underwriters will evaluate many factors. In most states, one of those factors—and perhaps one of the most influential ones—is ZIP code. ZIP codes have been implemented in the U.S. ever since their launching in 1963, and insurers have used these codes to gauge risks related to proximity, including population density, crime rates, and accident likelihood.

If you live in an area with a designated postal code that is associated with a high accident rate, you could end up facing higher rates because of the statistical probability of loss, even if you’re a great driver. Not every state uses ZIP codes as an insurance rating factor, however.

How ZIP Codes Affect Car Insurance Rates

ZIP codes can shed light on specific high-risk factors, which include:

  • Vandalism
  • Crime rates
  • Population density
  • Natural weather events
  • Accident rates
  • Auto theft
  • Road conditions

As these factors can vary from ZIP code to ZIP code, it makes sense why auto insurers would look at ZIP code to assess risk level in a certain area. ZIP codes are only one factor for how insurance rates are determined; they’re included amongst a much larger list, like driver age, driving record, number of miles driven, credit score (not all states), and so on.

Which States Don’t Use ZIP Code?

Currently, the only two states that have banned the usage of ZIP codes for auto insurance ratings are California and Michigan. In all other states, it’s legal for insurers to use ZIP codes as a rating factor for auto insurance to assess risk.

In states where it is legal to use ZIP code, some policyholders may be tempted to lie about their location to receive lower insurance rates. Doing so will constitute as an act of insurance fraud, which is illegal and can result in severe penalties, including but not limited to the cancellation of your policy. The bottom line? It’s better to be upfront and honest with your insurer.

Which ZIP Codes Have the Cheapest Auto Insurance Rates?

Currently (as of data from 2023) the ZIP code which has the cheapest car insurance rates is located in Charlotte, North Carolina, featuring an average quote (for liability only) of less than $50/month. Other states with affordable ZIP codes include Vermont, Arizona, Ohio, and North Carolina. The postal codes in these states are located in regions with lower population density, and therefore the drivers living in those areas are less likely to be involved in collisions.

Why Isn’t Using ZIP Codes as an Auto Insurance Rating Factor a Good Thing?

Well, it depends. If you’re a driver living in an area with rates that are lower due to a minimal accident rate, low crime, and low incidence of natural disasters, your ZIP code rating may be beneficial. However, if you live in an area with a ZIP code that is associated with high accident rates, high theft, and more, your rates may be higher – even if you were a good driver, and you could end up penalized despite being a responsible driver solely based on your geographical location.

ZIP codes are a convenient way for insurers to assess location-based risks, but they can end up oversimplifying the otherwise complex dynamics that exist in a neighborhood. Using a ZIP code approach may result in a disparity in premiums, overlooking individual circumstances in favour of looking at underwriting from a more “statistic” based approach.

While ZIP codes have only been banned in two states so far, there’s are talks about the banning of ZIP codes as an insurance rating factor altogether. The argument for this is that ZIP codes (and credit scores – although that’s a conversation for another day) tend to disproportionately target lower income communities and, incidentally, a higher rate of minorities living in a specific ZIP code. However, this varies all over the country. The consensus is ultimately that, as ZIP code can overlook responsible driving behaviour in favour of a statistic-based, “catch-all” approach, it can unfairly assign higher rates to what insurance companies would otherwise view as “good drivers.”

Why Do Teens Pay More for Auto Insurance?

Posted on by AHI Group

Auto insurance is a necessity for all drivers, but for teenagers, it often comes with a hefty price tag. If you’re a parent of a teen driver or a young driver yourself, you may have noticed that insurance premiums for teenage drivers are substantially higher than those for more experienced motorists. But why is this the case?

Knowledge is power, and with AHI Group, we’ll delve into the factors contributing to the higher auto insurance rates faced by teen drivers. Understanding these factors is not only essential for parents and young drivers but for anyone interested in the dynamics of insurance pricing. Discover ways to mitigate the steeper pricing for teen’s auto insurance by reading on.

Auto Insurance Basics

Auto insurance is a financial safeguard that protects drivers from the potentially exorbitant costs associated with accidents, vehicle damage, and medical expenses. In the states auto insurance rates are influenced by several factors, including the driver’s age, driving history, the type of vehicle insured, and the chosen coverage options.

Teen drivers, however, often find themselves on the wrong side of the affordability scale due to their limited experience and the higher perceived risk associated with this age group. To understand why teens face higher insurance rates, it’s crucial to dive deeper into the factors that drive these premiums. Which factors are used and to what amount varies by insurer, but generally you can expect insurance rates to vary based on age, gender, driving record, postal code, and more.

Teen Driving Statistics

The statistics behind the driving behavior and accident rates of teens paints a telling picture. While teens make up a relatively small percentage of all licensed drivers, they are disproportionately involved in accidents. This higher accident rate, combined with the associated insurance claims, contributes to the elevated insurance rates for young drivers in the state. Even if you, as a teen driver, are an otherwise good driver who has never been involved in an accident, simply being a younger driver can inflate your rates.

Factors Contributing to Higher Rates for Teen Drivers:

Several factors play a role in the elevated insurance rates for teen drivers:

  • Lack of driving experience. Drivers with more experience behind the wheel will generally be considered less prone to accidents and therefore be charged less.
  • Risk-taking behavior, which is said to be common among young drivers. Even if you personally don’t take many risks, you can still face high rates simply by being young.
  • Choice of vehicle and coverage options. Comprehensive coverage and high-performance vehicles are a costly combination.
  • Past accidents. Having accidents while being young can skyrocket your rates.
  • How often you drive. Young drivers who drive frequently (more than 6,000mi/year) may face higher rates than those who drive 3,000mi/year or less.

Understanding these elements is essential for both teens and their parents when shopping for auto insurance.

Ways for Teen Drivers to Lower Insurance Costs

There are strategies that teen drivers can employ to reduce their insurance expenses. Enrolling in defensive driving courses can help young drivers acquire essential skills and demonstrate their commitment to safe driving, potentially earning them discounts from insurance providers. Good student discounts are also prevalent among insurers, rewarding teenagers who maintain strong academic records. Finally, comparison shopping for insurance quotes is a valuable tactic for finding the most competitive rates. By exploring multiple options, teen drivers and their parents can identify affordable coverage that still meets their needs.

Graduated Driver Licensing (GDL) Programs

Kansas, like many states, has implemented Graduated Driver Licensing (GDL) programs aimed at gradually introducing teens to the responsibilities of driving. GDL programs typically include learner’s permits, intermediate licenses, and full, unrestricted licenses. These programs have a significant impact on insurance rates. Teen drivers with learner’s permits are generally less expensive to insure compared to those with full licenses, as they are under strict supervision. As drivers progress through the GDL phases, their insurance rates may change to reflect their increased driving experience. Understanding how GDL programs interact with insurance pricing is crucial for teen drivers and their parents when planning for the cost of coverage.

For similar programs in other states, discuss with an AHI agent. Each state has their own defensive driving programs and eligibility opportunities to lower rates through education.

Parental Involvement

Parents play a crucial role in helping teen drivers navigate the complex world of auto insurance. By setting a good example through their own responsible driving habits, parents can impart essential lessons to their teenagers. Moreover, parents can guide their teens in choosing appropriate vehicles and coverage levels, ensuring that they strike a balance between affordability and protection. Parental involvement extends to reinforcing safe driving behaviors and emphasizing the consequences of risky actions behind the wheel. By working together, parents and teens can better manage insurance costs and promote safety on the road.

Understanding why teen drivers face higher auto insurance rates is not only about economics; it’s about empowering young drivers and their parents to make informed decisions. As we’ve explored the factors contributing to these rates, from inexperience to state regulations, it becomes clear that proactive measures can mitigate these costs. Graduated Driver Licensing programs (and similar) offer a structured path to safer driving and more affordable insurance. Ultimately, by fostering a culture of responsible driving and informed insurance choices, we can pave the way for safer roads and more affordable insurance premiums for teen drivers in Kansas. Reach out to AHI Group for more information.

Does My Business Need Cyber Insurance?

Posted on by AHI Group

As we’ve discussed in previous blog articles this month, it’s Cybersecurity Awareness Month, courtesy of the CISA (Cybersecurity and Infrastructure Security Agency). During this month, we’ve talked about the importance of cyber security, statistics on cyberattacks, and the interplay between two vital insurance policies: cyber insurance and business interruption. 

Here at AHI Group, your business’s security is our business. We aim to help inform business owners by equipping them with the best practices to protect their businesses against digital threats. Although cyber insurance is just one piece of a much larger puzzle, today we’re focusing on the topic of why your business needs cyber insurance, how cyber insurance can help, and what to look for in a policy.

What Businesses Need Cyber Insurance?

If your business stores or processes any information vital to its operations or that are considered private information (especially data containing information about clients) then you should heavily consider cybersecurity insurance. Consider the implementation of a cyber insurance policy, especially if you keep any cyber data that includes customer names, addresses, medical records, financial information (like credit card numbers) and even Social Security numbers. 

Few industries, if any, are required to have cyber insurance. In some instances and with certain partnerships, it may be requested of you to obtain cyber insurance to protect another party and any of their data you’re handling. IT companies, for example, might be contractually obligated to have some form of cyber insurance. Otherwise, this new product is a relatively new offering and may not be required depending on your industry.

How Cyber Insurance Can Help Your Business

Cyber insurance is a type of business insurance product that is curated toward helping businesses, small and large, recover from cyber attacks as a result of phishing scams, networking threats, ransomware, and more. Cyber insurance can help protect your business against a huge range of threats, such as:

  • Cyber extortion, or ransomware (which we’ve covered in a previous post!), which is an event that occurs where a cyber thief makes a demand for payment upon compromising your data or restricting your access to your networks.
  • Breaches of data, such as when you lose confidential or personal information, or a cyber criminal has had unauthorized access to your personal information.
  • A denial-of-service attack or technological failure, where a cyberattack results in the inability to access your online services.

Attacks vary in scale and cost, but they’re all disruptive. Cyber insurance helps to cover the costs that could come out of a successful cyber attack, including costs to notify affected parties, legal representation, the costs to restore damaged, lost, or corrupted data, and the outsourcing of a firm to investigate the breach’s source.

Most businesses purchase stand-alone policies with coverage specifically curated to cyber risks. Other businesses will opt for a business insurance endorsement that may supplement, modify, or increase existing cyber insurance coverage. Ask an AHI representative about which option is best for you.

What to Look For in a Cybersecurity Insurance Policy

In an age where digital threats loom large and cyberattacks have become an unfortunate reality, protecting your business from the potentially devastating consequences of a breach has never been more critical. Cyber insurance is the armor that can safeguard your business from financial ruin and reputational damage in the event of a cyber incident.

Financial Protection

Cyber insurance is designed to provide financial coverage in the wake of a cyberattack or data breach. These incidents can lead to substantial financial losses, ranging from the cost of investigating the breach, restoring compromised systems, notifying affected parties, and even potential legal actions. Without cyber insurance, these expenses can overwhelm a business. With the right policy in place, you can mitigate these financial burdens and ensure that your business can weather the financial storm.

Business Continuity

One of the most significant benefits of cyber insurance is its ability to support business continuity. When a cyber incident disrupts your operations, business interruption coverage within your cyber insurance policy comes to the rescue. It helps cover lost income and ongoing expenses like salaries and rent, ensuring that your business remains financially stable during the recovery process. This can be the difference between a business that thrives despite the interruption and one that struggles to recover.

Data Breach Response

A critical component of cyber insurance is the support it offers during a data breach. This includes access to a network of experts who can help your business navigate the breach, manage the response, and meet legal and regulatory obligations. Having this expertise at your disposal can make the process significantly smoother and more efficient, minimizing the damage to your business’s reputation.

Reputation Management

The fallout from a cyber incident can extend to your business’s reputation. Customers and partners may lose trust in your ability to protect their data, leading to long-term damage. Many cyber insurance policies offer reputation management services to help mitigate the impact of a breach on your brand and rebuild trust.

Customized Coverage

Cyber insurance is not a one-size-fits-all solution. Policies can be tailored to meet the specific needs of your business. Whether you’re a small startup or a large corporation, there is a cyber insurance policy that can be crafted to address your unique risks and circumstances.

This Cyber Month, AHI has aimed to educate, inform, and raise awareness about the growing and ever-evolving threat of cyber risks. We hope that we’ve done our part in showing you just how costly cyber attacks can be, as well as providing you with the tools you need to keep your business safe. And, as always, we’re happy to chat about the best ways to manage your business’s risk. Give us a call today.

Business Interruption and Cyber Insurance: How They Interact

Posted on by AHI Group

In the fast-paced world of business, where every moment counts and every decision matters, the last thing any commercial client wants to deal with is an unexpected interruption. Business interruptions can arise from a variety of sources, whether it’s a natural disaster, supply chain disruption, or in our focus today, the ever-looming spectre of cyber threats.

The reality is that cyber risks are on the rise, and they have the potential to halt your business operations in their tracks. We get it, and we’re here for you. Our mission isn’t just about providing insurance; it’s about empowering you, our valued commercial clients, with the knowledge and tools you need to safeguard your business in this digital age.

At AHI Group, we believe that understanding the connection between business interruption and cyber insurance is not just a business necessity; it’s a promise we make to you, our clients, to care for your interests and provide the support you need to weather the storms that the digital world can bring.

Understanding Business Interruption Insurance

In the realm of business, every moment invested in realizing your vision can be a stepping stone toward success. Business interruption, a sudden and unforeseen disruption to your daily operations can deliver a gut-wrenching blow. Imagine managing a thriving business, steering your team toward your objectives, when suddenly, without warning, disaster strikes. It could be a natural calamity, a critical supplier’s unforeseen hiccup, or, as we delve into today, a cyber incident. The outcome remains consistent – your operations grind to a halt, revenues plummet, and the realization of your dreams feels more distant than ever. Business interruption can be an invaluable inclusion in your overall insurance plan.

The Role of Cyber Insurance

Cyber insurance and business interruption insurance work hand in hand. When a cyber-attack happens that causes your business’s operations to stall, business interruption insurance can be activated to help cover the lost costs during a period of forced closure. 

Business interruption coverage in your cyber insurance policy acts as a financial safety net during these turbulent times. It helps cover the income you would have earned had the cyber incident not occurred. It also assists in paying for ongoing expenses like rent, salaries, and utilities. This crucial component can make the difference between a business that manages to weather the storm and one that faces severe financial distress.

The Growing Threat of Cyber Risks

In today’s interconnected world, cyber risks have evolved into a formidable adversary for businesses of all sizes. The digital landscape is bustling with innovation, convenience, and efficiency, but it’s also teeming with lurking cyber threats that have the potential to disrupt, damage, and even dismantle companies. This growing threat is not one that business owners can afford to overlook.

Cyberattacks, including data breaches and ransomware incidents, have become increasingly sophisticated, with cybercriminals constantly refining their tactics. The consequences of a successful cyberattack can be far-reaching, extending beyond financial losses to encompass reputational damage and loss of customer trust. In an era where information is not just an asset but the lifeblood of many businesses, the stakes are incredibly high. Every day, companies are targeted, and while some may have the resources to weather the storm, many others find themselves vulnerable to the devastating consequences of a cyber incident.

Empowering Clients to Take Action

Now that we’ve explored the vital connection between business interruption and cyber insurance, it’s time to shift our focus to empowerment. At AHI Group, we understand that knowledge alone is not enough; it’s the proactive steps you take that truly make the difference in safeguarding your business.

Empowering our commercial clients to fortify their businesses against cyber threats is not just our commitment; it’s our passion. We’re dedicated to providing you with the tools, guidance, and strategies you need to bolster your cybersecurity measures. The journey begins with self-assessment. Take a close look at your current cybersecurity practices and identify areas that may be vulnerable. It might involve evaluating your data security, access controls, employee training, and incident response plans.

That’s where AHI Group’s expertise and guidance come into play. We’re here to assist you in understanding your unique cyber insurance policy, ensuring you know how to navigate the claims process and receive the support you need when the unexpected occurs. We stand by your side during every step of your journey toward resilience and security, because at AHI Group, we’re not just an insurance provider; we’re your partners in success, ready to empower you to face the digital age with confidence and strength. Call us to discuss your cyber insurance strategy today.

The Big Halloween Scare: Ransomware and Your Business

Posted on by AHI Group

Ghosts, zombies, ghouls, and ransomware – one of these things is not like the other. While it’s true that monsters and Jack o’ Lanterns have been the featurette of Halloween, business owners have something even bigger to be afraid of: cybercrime. Cybercrime comes in many, many forms, but one of its most popular (and perhaps most harmful) forms of cybercrime is ransomware, a malicious digital attack on your business’s valued technological assets.

This article isn’t to necessarily frighten you so much as it is to inform you, but we couldn’t ignore the irony of this year’s Cyber Month including a Friday the 13th. So, to stick with the theme, let’s talk about the big Halloween scare: ransomware and how it can affect your business!

What is Ransomware & Why Should I Be Scared?

Ransomware, by definition, is a criminal act by which a cybercriminal – an individual or entity – breaches a company or organization’s network and steals their digital assets, usually financial information or private client data. That data is then held for ransom and may be “frozen,” and therefore unable to be accessed by the company or organization.

Ransomware can be devastating. For one, it can be seriously impactful to a business’s operations to be unable to access critical data and information. Two, it can be a breach of privacy for the clients’ whose data may have been stolen. Later down the line, that can lead to costly lawsuits. That’s not even to mention the potential amount of money the data could be held ransom for, which for smaller businesses may seriously harm their finances.

Any business that uses data may be at risk of ransomware. It happens more often than you might think, and increasingly so as more and more organizations utilize data and technology in their everyday operations. Even your casual Mom and Pop shop working off the Corner of X Street could be exposed if they store any financial data on their computers.

Ransomware and Businesses: 2023 Statistics

To put into perspective just how catastrophic a ransomware attack (or any sort of cyber attack, for that matter) can be on your business, we’ve compiled a list of up-to-date commercial ransomware statistics. Keep in mind that large and small businesses alike are impacted by ransomware. These stats don’t exclude businesses with fewer than five employees, and in fact those businesses may make up a larger proportion of the businesses that are affected. Smaller businesses may be less “appealing” to cybercriminals, but their fortifications are often less than that of larger companies and therefore are easier to breach.

  • Healthcare ranks as the costliest industry for a breach, with breaches costing $10.1 million on average.
  • Phishing (sending malicious emails or attachments through email, posing as either a reputable individual or entity) continues to be the most popular scam in 2023.
  • In 2023, ransomware makes up about 24% of all cyber attacks.
  • According to a report from IBM, it can take a year (on average) to identify and contain ransomware. Paying for the ransomware has been proven to not result in any cost savings.
  • As cloud technology is adapted more and more, it too becomes a target for ransomware and is becoming increasingly exploited.

Many of the “big breaches” we often here about are involving those large companies, like Microsoft or Facebook, but that doesn’t mean that breaches aren’t happening regularly to the smaller guys, either. They just don’t make headlines like the big businesses do. It’s serious business, cybercrime! Here’s how you can keep your business safer:

Creating a Business Cyber Toolkit to Stay Safe

Just because it only might happen doesn’t mean your business shouldn’t take its cyber safety seriously. Even if you think you don’t have much to lose, taking action to protect your business’s digital assets can go a very long way – and can save you a serious headache later down the line.

Cyber insurance is just one aspect of cyber safety. To be transparent, you won’t have much luck finding a policy if you aren’t already taking measures to keep your organization safe.

Those measures, which we’ve talked about in previous blogs this Cyber Month, are doing such things as training employees on the latest up-to-date cybersecurity tips, implementing multi-factor authentication, installing (and regularly updating) your system’s firewall, having remote employees use a VPN, and more.

Small steps like these should be regularly incorporated into your business’s everyday operations. Doing so can greatly mitigate your odds of being involved in a data breach, ransomware event, or cyber attack, or at least help your organization to identify if you’ve been targeted by a scheme.

And finally, get cyber insurance. If all else fails, it’s valuable to know you have the backing of a comprehensive insurance policy to safeguard your assets – digital or otherwise.

Certain cyber insurance packages will also come with access to cybersecurity experts, who can help your business not only bolster its existing cybersecurity protocol but provide a step-by-step path to recovery if you’re ever finding yourself needing to recoup following a cyber attack. Ask an AHI representative for more information about this option.

Get Insured this Halloween with AHI Group

Before you start to decorate the office and prepare for your “spooky staff party,” it’s time to get your business adequately protected with the right cyber insurance. AHI helps its commercial partners get the cyber insurance they need.

Give us a call to discuss your business’ technological needs today and we’ll happily start the process of finding you comprehensive cyber insurance. Happy Friday the 13th!

Let’s Talk Cyber Security: Cyber Tips for All Size of Businesses

Posted on by AHI Group

This misconception that only large businesses are at risk of cybercrime is not only incredibly untrue, but it can also be devastatingly harmful. Big businesses have far more financial muscle to protect themselves from cyber risks, and can invest more into cyber security measures, which overall can act as a deterrent to potential criminals. Small businesses? Small businesses may not seem like appealing targets from the outskirts, but the truth is that they’re perhaps more at risk because they may be less protected and less informed in how to defend themselves against cyberattacks.

All this is to say that small businesses and big businesses need to understand the importance of cyber security, which ranges from information back-ups and password management to proper employee training. Your business’s cyber security is only as strong as its weakest link! Let’s take a deep dive into some critical cyber tips for all size of businesses. 

Tailoring a Cybersecurity Strategy for Your Small Business

Cybersecurity doesn’t have to be expensive, but it can take some effort on your part as a business owner. A good plan should incorporate the maintenance of cyber insurance policies, response protocols, the installation of adequate firewalls and software, and educational materials to be laid out in advance. The prevention of an attack should always be a top priority, as it’s better to avoid an incident altogether than have to pick up the pieces after one has occurred. 

For having a consistently up-to-date strategy, you may consider hiring a cybersecurity point person. If this isn’t in the budget, that’s OK! Instead, look internally and consider adding that responsibility (for a pay raise) to an existing employee who can manage news on up-to-date tactics, the latest virus prevention software, and more. Now, let’s get into some cyber tips:

Implement Multi-Factor Authentication (MFA)

Multi-factor authentication, or MFA, requires users to perform multiple actions in order to gain security access to accounts, networks, or databases. It acts as a deterrent to potential hackers and bolsters your security, plus it helps employees get into the practice of ensuring accounts are safeguarded, even if a password is compromised. MFA can include passwords, biometrics, email validation, cell security codes, and more.

Utilize Information Backups

As we have earlier addressed in our previous blog on Cyber Awareness Month, a lot of data attacks happen as a result of cloud-based software. Having information backups and storing them on separate mediums, like USB sticks, external drives, or even disk storage system can go a long way. This ensures that in case of a cyberattack or data loss, you can quickly recover without significant disruptions.

Network Security

Invest in a firewall, intrusion detection system, and antivirus software to protect your small business’s network. Segment your network to isolate sensitive data and limit access only to those who need it. Make sure to regularly monitor network traffic for anomalies that might indicate a breach, or outsource a team of professional information technology experts who can do so on your company’s behalf.

Start by Training Your Employees

The biggest risk to your company’s security? Your employees. Human error is the number one largest cause of data breaches. Start by educating your employees about cybersecurity best practices. Ensure they understand the importance of strong passwords, recognize phishing attempts, and know how to securely handle sensitive data. Regular training sessions can help keep your team vigilant, whether those are once per year, once per every six months, or even more frequently (depending on your industry.)

Cover topics that are relevant to your business, like the utilization of strong passwords and the implementation of MFA. Work remotely? Use virtual training workshops to train remote employees how to utilize their company’s network from a remote setting safely. Talk about phishing safety, safe Internet browsing, and secure communication practices.

Get Cyber Insurance

First – cyber insurance is not a replacement for cyber security. It’s a supplement. Most cyber insurers will not insure a business without pre-existing cyber security measures, including firewall, MFA, and certain cybersecurity measures. Cyber insurance can act as a fallback plan for any business that may be at risk of a cyber breach, and can help if all else fails.

Cyber insurance and sufficient cyber security are both critical tools in the digital age. Cyber insurance provides financial protection against the potentially devastating costs associated with a cyberattack or data breach. In an era where cyber threats are constantly evolving and becoming more sophisticated, having cyber insurance can help mitigate the financial and reputational fallout of such incidents.

Cyber insurance typically covers expenses like legal fees, notification costs, forensic investigations, and customer credit monitoring, among others. It can also help cover the costs of restoring compromised systems and data. Moreover, cyber insurance can provide invaluable support in the form of incident response teams and experts who can guide a company through the crisis, ultimately minimizing the long-term damage to its operations and reputation. Given the prevalence of cyber threats today, having cyber insurance is a wise investment to safeguard your business’s financial stability and resilience in the face of digital risks.

Get Insured with AHI Group and Protect Your Digital Assets

AHI Group is an agency based in Olathe, Kansas that helps small and large businesses alike find the comprehensive insurance coverage they need. As the world of technology evolves at our fingertips, so does the sophistication of cybercriminals, making it all the more important for us to stay on our toes. Give us a call to discuss getting your business the cyber insurance it needs to stay vigilant against potential digital threats.

What is Cybersecurity Awareness Month & Why Should You Care?

Posted on by AHI Group

As we enter the month of October, the crisp autumn air isn’t the only thing that should be on your radar. It’s also the start of National Cybersecurity Awareness Month, a time dedicated to raising awareness about the critical importance of cybersecurity in our increasingly digital world. At AHI Group, we understand that safeguarding your business’ digital assets goes beyond traditional insurance policies.

We’ll delve into why October is Cyber Awareness Month and why it should matter to you, your business, and your peace of mind. In a world where cyber threats are ever-evolving, arming yourself with knowledge is your first line of defense. So, grab a warm cup of coffee, settle in, and let’s explore the world of cyber awareness and how it can impact your life and business.

What is Cybersecurity Awareness Month?

Ever since 2004, October has been internationally recognized as Cybersecurity Awareness Month. As if October wasn’t already spooky enough, we’re dealing with businesses’ awareness of cyber threats: ransomware, cyber attacks, and data breaches. In the United States, October’s Cyber Month comes out of a collaboration between the U.S. Department of Homeland Security and the National Cyber Security Alliance. 2023 will mark the 20th annual Cybersecurity Awareness Month.

What’s even more remarkable, this year the Cybersecurity and Infrastructure Security Agency (or CISA) is partnering with the National Cybersecurity Alliance (NCA) to curate both messaging and critical resources for businesses to utilize when they go over the importance of cybersecurity awareness and staying safe online with their employees, members, and customers. 

As a business, you can also become a partner with CISA for Cybersecurity Awareness Month, and work together with the organization to help spread information about how to reduce risks online or when utilizing tech that’s connected to the Internet. Email AwarenessCampaigns@cisa.dhs.gov for more information about becoming a Cybersecurity Awareness Month partner.

Why is Cybersecurity Awareness Important?

Because around 2328 cyber attacks happen each day. Excuse the shock factor, but businesses must understand just why cybersecurity awareness is so crucial. Here’s some startling stats from 2023:

  • Between 2001 and 2021, it is estimated that a total of $26 billion was lost due to cyberattacks, breaches, and other cybercrime events.
  • The healthcare industry is easily one of the most targeted sectors, with roughly 90% of institutions in the USA having experienced at least one data breach in the last few years.
  • Between 2013 and 2019, over 70% of cyber insurance claims resulted from incident response, data breaches, and overall crisis management. 
  •  The United States is at the top of the list when it comes to countries with the highest average cost of a data breach, reigning in at 9.44 million USD. The Middle East follows with an average of 7.46 million USD, and Canada is third with 5.64 million USD.
  • 45% of all data breaches were found to be cloud-based. 

Data breaches are no joke. The thought that smaller businesses shouldn’t need to be proactive in their efforts to protect their business’s digital assets is a misconception; smaller businesses may not have the financial muscle to respond to a data breach, and they may be more tempting for cybercriminals due to their lack of cybersecurity measures. All sizes of businesses are at risk – small businesses perhaps even moreso. That’s why all organizations that use tech or access the Internet in some form need to be proactive and incorporate cyber risk management strategies. 

Risk Management and Small Businesses

In the upcoming blogs throughout Cyber Awareness Month, we will provide you with a comprehensive toolkit for managing cyber risks, tailored to businesses of all sizes. Here’s a sneak peek of the essential strategies and tips we’ll delve into:

Employee Training and Awareness

Educate your workforce on cybersecurity best practices to ensure they can identify and mitigate potential threats.

Strong Password Policies

Implement robust password policies and multi-factor authentication to safeguard your digital accounts.

Regular Software Updates

Stay current with software updates and patches to plug security vulnerabilities.

Data Encryption

Employ encryption techniques to protect sensitive data both in transit and at rest.

Incident Response Plans

Develop and rehearse incident response plans to minimize downtime and data loss in case of a breach.

Vendor Risk Management

Assess and manage the cyber risks associated with your third-party vendors and partners.

Cyber Insurance

Explore the benefits of cyber insurance policies tailored to your business’s unique needs.

Network Security

Strengthen your network security with firewalls, intrusion detection systems, and regular network assessments.

Regular Backups

Implement automated, frequent data backups to mitigate the impact of ransomware attacks.

Compliance and Regulations

Stay informed about industry-specific regulations and compliance requirements to avoid costly penalties.

These tips will serve as a foundation for your organization’s cybersecurity strategy, ensuring you’re well-prepared to navigate the ever-evolving landscape of cyber threats. Stay tuned for in-depth insights and expert advice in our upcoming blog posts throughout Cyber Awareness Month.

Bundling Home and Auto Insurance in Kansas: Combining Protection and Savings

Posted on by AHI Group

Bundling policies to reap the benefits of great savings is an often talked-about, but seldom often acted-on means to enhance both the convenience and accessibility of your insurance documents and your savings potential. As both a responsible homeowner and a vehicle owner, you understand the importance of safeguarding your assets and loved ones. But did you know that bundling your insurance policies can offer you more than just peace of mind? In this article, we’ll delve into the advantages of combining your home and auto insurance coverage, particularly tailored to the unique needs of Kansas residents. From potential cost savings to simplified management, we’ve got you covered!

*Note: Not all insurance policies qualify for “bundle and save” discounts, and the exact discount percentage will vary from carrier to carrier. Keep that in mind when purchasing policies through the same carrier, and don’t hesitate to reach out to an agent to ask about savings opportunities!

Why Do Insurance Companies Reward “Bundling?”

What is the point of rewarding return customers, anyway? Well, there’s a good reason why insurance companies offer discounts for policyholders who choose to “double up” with them.

Enhanced Risk Assessment

By offering combined coverage for home and auto insurance, insurers create a win-win scenario for both themselves and policyholders. One of the primary drivers behind this practice is risk mitigation. When a policyholder bundles multiple insurance policies with the same company, it reduces the overall risk exposure for the insurer. This is because they have a more comprehensive view of the customer’s profile, enabling them to better assess and manage potential risks.

Increased Customer Retention

Also, bundled policies can help increase customer retention. Consolidating insurance coverage makes the process more convenient for the customer, allowing them to access, pay, and file claims easier. This streamlined experience fosters loyalty and reduces the likelihood of customers seeking coverage elsewhere. Insurance companies recognize this and, in return for customer loyalty, offer various discounts and incentives, making bundling an attractive proposition.

Reduced Administrative Costs

From a financial perspective, bundling can also lower administrative costs for insurance companies. Managing a single account requires less administrative overhead than managing multiple individual policies. This cost efficiency is reflected in the form of discounts and reduced premiums offered to policyholders who opt for bundled coverage. In essence, insurance companies reward bundling as it aligns with their operational efficiencies, risk management strategies, and customer retention goals.

The Benefits of Bundling Auto and Home Insurance as a Policyholder

In our busy day-to-day lives, with so much on the go, wouldn’t it be better to have just one aspect of your life as streamlined and as easy as possible? Bundling your home and auto makes, at the very least, that part of your home and car ownership duties so much easier.

Here are three key benefits to bundling auto and home insurance as a policyholder.

Cost Savings

One of the most appealing advantages of bundling auto and home insurance is the potential for significant cost savings. Insurance companies often provide policyholders with discounts when they choose to bundle their coverage. These discounts can translate into lower overall premiums compared to purchasing separate policies. This financial relief can be especially beneficial in states like Kansas, where homeowners and drivers alike face potential risks such as severe weather events and accidents. By bundling, policyholders can secure comprehensive coverage while enjoying valuable financial savings.

Simplified Management

Managing insurance policies can become overwhelming, especially when dealing with different providers, renewal dates, and policy details. Bundling simplifies this process by consolidating everything under one roof. Policyholders have a single point of contact for inquiries, claims, and payments, streamlining their administrative tasks. This convenience not only saves time but also reduces the likelihood of missing important updates or payments. With the demands of modern life, having one less thing to worry about can bring peace of mind to homeowners and drivers alike.

Enhanced Coverage and Flexibility

Bundling auto and home insurance doesn’t just lead to savings—it can also result in enhanced coverage options. Insurance companies often offer additional benefits and perks for bundled policies, such as increased liability limits, extended coverage for valuables, or coverage for rental cars in case of accidents. Moreover, policyholders may have more flexibility to customize their coverage to match their specific needs. This tailored approach ensures that both their homes and vehicles are well-protected against potential risks, giving them greater confidence in their insurance coverage.

Note, however, that not every insurance company will offer these benefits to return customers. It helps to check, though! Give your agent or direct provider a call to ask about bundling rewards.

How to Start Bundling Your Home and Auto Insurance

Choosing to bundle your home and auto insurance is a straightforward and rewarding process. To begin, reach out to either your agent here at AHI Group or your provider directly and request quotes for bundled coverage. They will guide you through the information they need, such as details about your home, vehicles, and any additional coverage preferences. Don’t hesitate to ask questions to ensure you fully understand the coverage you’re getting and the potential discounts available.

Once you’ve gathered quotes, take the time to compare the coverage, costs, and benefits offered by different providers. This step is crucial in making an informed decision that aligns with your protection needs and budget. Remember, bundling isn’t just about financial savings—it’s about securing comprehensive coverage that addresses your specific circumstances. AHI Group is happy to help you find the right company for both your home and auto insurance needs, and wants to help you along on your journey to enjoying the advantages of bundled home and auto insurance.

What Factors Determine Home Insurance Rates in Nebraska?

Posted on by AHI Group

Year-round threats of disasters ranging from lightning storms and tornadoes to record-breaking snow dumps make home insurance in Nebraska a must. If you have a mortgage, odds are you’re probably in need of home insurance anyway – and even if you don’t, you’ll want to protect your asset!

How much you pay for your homeowners insurance depends mostly on your home’s replacement cost and how much dwelling coverage it requires. Don’t think that skimping on your dwelling coverage will save you money – if there’s a disastrous loss, you’ll be responsible for paying the difference between what your home would cost to rebuild and what it’s insured for! 

Let’s take a look at the average cost of home insurance in Nebraska and the most common rating factors for home insurance.

What is the Average Cost of Home Insurance in Nebraska?

The average cost of homeowners insurance in Nebraska for a policy with $300,000 in dwelling coverage is estimated to be about $3,510/year. Below is a breakdown of how an increase in your dwelling coverage limit might impact your rates.

  • A home with a $200,000 dwelling coverage limit is estimated to cost $2,660/year to insure.
  • A home with a $400,000 dwelling coverage limit is estimated to cost $4,369/year to insure.

By comparison, the national average (as of September 2023) sits at about $1,754/year. Home insurance in Nebraska tends to be higher than in most other states, in part due to its volatile weather patterns. We’ll get into a little more detail about why that matters in the sections below.

Rating Factors for Home Insurance in Nebraska

Insurance companies in Nebraska use complex algorithms to assess these factors and determine your premium. To get more accurate information for your situation, consult with a rep from AHI Group.

Home Safety Features

Having security systems, smoke detectors, burglar alarms, and other safety features can reduce the risk of theft and damage, potentially leading to lower premiums. Also, the proximity of your home to a fire hydrant or station can impact your premium. Homes closer to fire protection services may have lower premiums since they’re likely to receive help in time if there’s an accident.

Claims History

Your past insurance claims can influence your premium. If you’ve had multiple claims or high-value claims, insurers might view you as a higher risk and charge higher premiums.

Home Characteristics

Things like construction, age, etc. can affect insurance costs. Newer homes or those built with fire-resistant materials can have lower insurance premiums. The square footage of your home and its overall value can also contribute to the replacement cost, which affects the premium, and the type of your roof (whether it’s fire-resistant, more durable, made from metal, etc.) can play a role.

Location

The geographic location of your home plays a significant role. Factors like the distance to a fire station, proximity to water bodies (which could increase flood risk), crime rates in the area, and the history of natural disasters in the region can impact your premium. Nebraska has a volatile weather history, but some cities are more prone to poor weather than others.

Deductible

The deductible is the amount you agree to pay out of pocket before the insurance coverage kicks in. A higher deductible often leads to lower premiums, while a lower deductible increases your premium.

The Weather in Nebraska

Nebraska is no stranger to extremes in weather, which is one of the major reasons why home insurance costs are so high in the state. Larger cities closer to bodies of water or that are just generally closer together may also be more subject to rate hikes.

Fires in Nebraska have become more frequent due to potential climate change impacts, burning tens of thousands of acres and removing people from their homes. In April 2022, two fires two weeks apart burned a chunk of land near the size of Omaha by Cambridge, resulting in almost $2.3 million in damages. As insurance companies respond to claims of houses having been burned down, and roofs ripped off by severe weather, they’re having to raise their premiums to ensure their pool is sufficient to continue paying out more claims. And what does this mean? Higher premiums.

Combating Higher Premiums with AHI Group

While Nebraska does see some of the highest home insurance premiums, all is not lost. AHI Group has plenty of reputable insurance carriers that we do business with, and we’re happy to find you a match that gives you the best price. We’ll also provide you with tips on how to save money, such as:

  • Installing smoke alarms and burglar alarms
  • Raising your deductible
  • Qualifying for multiline insurance discounts
  • Taking preventative safety measures around the house
  • Replacing your roof with fire-resistant materials

Give us a call today to start a quote for your Nebraska home insurance. We’re happy to help you find a more affordable solution so you can continue protecting your home with ease of mind.

What Does Auto Insurance Cover in the State of Kansas?

Posted on by AHI Group

If you’re on this blog, you’re probably already aware that, as a driver, you must purchase auto insurance. You might be shopping for a new vehicle and therefore need insurance, or you’re looking to find a more affordable policy to protect yourself and others on the road.

In the United States, most states require bodily injury liability insurance (apart from Florida.) New Hampshire is the only state where you do not need any car insurance, but you are required to show proof of financial responsibility. In Kansas, auto insurance regulations vary somewhat: four types of coverage are mandatory, and many others are highly recommended. Let’s dive into what auto insurance covers in the state of Kansas.

Mandatory Auto Insurance Coverage in Kansas

In Kansas, when you purchase auto insurance, you are purchasing several different coverages that come together as a single package. Each type protects you against losses of a different variety. We’ll provide a brief overview of each basic (mandatory) coverage in this section, and then later we’ll get into some optional (but highly recommended) auto insurance coverage options.

Bodily Injury Liability

In the event of an accident where you, as the driver, are deemed at-fault, this coverage kicks in to pay for the other involved party’s medical expenses, funeral costs, rehabilitation costs, and other covered costs. If a lawsuit kicks up, then this coverage may also pay for the settlement of those lawsuits, plus any ensuing legal expenses that you’re faced with.

  • Per state law, liability coverage must have minimum coverage to pay for $25,000/person for bodily injury and at least $50,000/accident for bodily injury.

Property Damage Liability

Property damage liability triggers the same way bodily injury liability does: when you were at-fault in an accident and caused damage to another person’s property, whether that’s their car or even their home, this coverage kicks in to pay for the repairs, replacement, or cash value of the property lost. It can also help to pay for any ensuing legal costs.

  • In the state of Kansas, currently, law mandates that property damage liability must have coverage of at least $25,000/accident.

PIP/Personal Injury Protection

Personal injury protection, or PIP, pays out for any necessary lost wages, funeral expenses, rehabilitation costs, medical expenses, and even in-home care or assistance if you or your passengers were injured in an accident regardless of how fault was assigned. Each passenger in different vehicles would collect under their own policy rather than pursuing the other driver’s insurance company for compensation.

  • In the state of Kansas, automobile insurance law requires that policies sold must contain the minimum levels of coverage as detailed below:
    • $2,000 for funeral, cremation, or burial expenses
    • $4,500/injured person for medical expenses
    • $900/month for one year of loss of income/disability
    • $25/day for in-home care services
    • $4,500 for rehabilitation services and care

Uninsured/Underinsured Motorist Protection

Despite auto insurance being mandatory in the state of Kansas, some drivers choose to forgo coverage illegally. If an accident results where an uninsured, underinsured, or even unidentified driver (such as a hit-and-run) is at-fault then this coverage pays for medical, funeral, or rehabilitation costs, as well as the cost of lawsuits. It would also pay out if you or a family member were a pedestrian hit by an uninsured/underinsured or unidentified driver.

  • In Kansas, policies for uninsured/underinsured motorist protection must include a minimum of $25,000/person and $50,000/accident.

Optional Auto Insurance Coverage in Kansas

Not all coverage in the state of Kansas is mandatory, and some may be purchased at your own discretion to ensure fuller coverage and more comprehensive insurance.

Comprehensive Coverage

This coverage goes beyond accidents, protecting your vehicle from non-collision incidents such as theft, vandalism, natural disasters, and falling objects.

Collision Coverage

In the event of a collision with another vehicle or object, collision coverage helps pay for repairs to your own vehicle, regardless of fault.

Towing and Labour Coverage

Also called roadside emergency assistance coverage, this coverage kicks in if your car should break down. It helps to cover the cost of any necessary roadside assistance services, such as towing.

Gap Insurance

This optional coverage is only applicable to those who finance or lease their vehicle. If your car is totalled or stolen and its value is less than your outstanding loan or lease balance, gap insurance can help cover the difference.

How Rates Are Determined for Auto Insurance in Kansas

One of the biggest questions that is asked when purchasing auto insurance is, “how much does it cost?” You want to save the most on your auto insurance in Kansas, and we understand.

There are two major factors that will determine just how much you end up paying for your auto insurance in the state. Those are the rating of your vehicle and underwriting. Underwriting is essentially the process by which a company considers the various factors regarding you and your driving habits. These tend to be your driving record, where you live (within Kansas, since not all neighbourhoods or areas have the same traffic statistics) the make and model of your car, gender, prior insurance coverage, how often/far you drive, and more.

In Kansas, insurance companies take these factors into account and then place you into a rating category. The ones with the best risks, aka the safest drivers, are placed into preferred categories and are given the lowest rates. Standard is a little riskier, so these are slightly higher rates for moderate-risk drivers. And then, finally, there are non-standard or “high-risk” drivers who can be uninsurable for some insurance companies depending on their risk profile and who will see the highest rates.

As a driver living in Olathe, Kansas, or any other of our service areas in Kansas, we advise you to contact AHI Group, one of Kansas’s premier insurance companies specializing in auto insurance. We’re happy to help you get the best rates possible and insure your first, second, or sixteenth vehicle – whatever your situation might entail.

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