Nonstandard Auto Insurance
This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.
When a driver buys auto insurance, the insurance provider will make a calculated risk by agreeing to cover them. In exchange for coverage, the driver pays the insurance company an insurance premium (typically monthly, semiannually or annually). This premium is based on various risk factors, including age, marital status, credit history, vehicle type and driving history. Sometimes, if a driver has significant operating risks, they may not be able to be covered as part of standard, low-risk insurance pools. As a result, they may be required to buy nonstandard auto insurance.
However, needing nonstandard auto insurance isn’t as uncommon as you might think. According to research from Verisk, a data and analytics company, 20% of premiums paid for auto insurance are for nonstandard policies. Other industry experts say this number could be as high as 40%.
While the average nonstandard auto policy won’t look much different from a standard plan, it often costs more overall. Nonstandard policyholders often find it a bit more challenging to find affordable coverage. Keep the following general guidelines in mind when getting coverage.
Who Typically Needs a Nonstandard Auto Policy?
There are a handful of groups of people who would typically need to purchase a nonstandard auto policy. One group includes drivers with major traffic violations or other significant operating risks on their records. A driver might earn this designation if they:
- Are under 25 years old
- Carry an SR-22 certificate, which certain states impose on drivers who commit certain driving offenses
- Have a tarnished driving record with numerous infractions for reckless driving
- Have had a DUI or OWI charge
- Drive a vehicle with a salvage title
- Have previously driven uninsured or underinsured
- Have a poor credit rating (most states allow insurers to consider credits when setting your rates)
- Carry a foreign license or have no driving record in the United States
- Have a high risk of accidents
Outside of this group of high-risk drivers, other individuals may need to purchase a nonstandard auto policy if they have a luxury vehicle, racecar or another type of vehicle that has a higher risk of theft or large losses.
These indicators show an insurer that, statistically, this driver may be more likely to have another high-cost claim or accident that the insurer would need to pay for on the driver’s behalf. Since the driver is now a greater cost risk to the insurer, they will have to compensate for that risk by charging the driver a higher premium. Every insurance company is different, which is why it’s important to work with a qualified agent to determine what type of coverage may be necessary.
Differences Between Standard and Nonstandard Policies
The primary difference between standard and nonstandard auto insurance policies is their cost. Nonstandard policies are offered only to drivers with the highest risk of causing accidents or filing significant claims on their policies. The higher cost that comes with the policy is designed to cover the additional cost and more frequent claims filed by these drivers, on average.
Some insurers don’t offer nonstandard policies, which might force drivers who have been newly classified as nonstandard to look for coverage from an entirely new insurance carrier. Still, nonstandard auto policies will generally contain all the coverage options available to regular drivers, and an agent can help a driver customize a policy to fit their needs.
Residual Market Auto Insurance Policies – Coverage for the Highest Risk Drivers
At times, some drivers will have such high operating risks that they will be unable to obtain insurance through even a nonstandard plan. To still get the coverage you are required to carry, they will have to obtain coverage through the residual market. The residual market is a pool of drivers managed by state regulators. When you apply for coverage through the residual market, your state’s Department of Insurance will then require one of the insurers operating in their borders to issue you a plan. Residual market plans are often among the most expensive policies available and should only be considered as a last resort.
- Published in Blog
Flash Mob Robberies
This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.
Organized retail crime (ORC) refers to large-scale shoplifting incidents or other illegal (and sometimes violent) acts conducted by groups of criminals with the purpose of stealing significant amounts of merchandise. ORC has become a growing concern for retail businesses in recent years. In fact, the National Retail Federation (NRF) reported that ORC costs retail businesses an average of $700,000 for every $1 billion in sales. This surge in ORC has largely been caused by criminals looking to capitalize on the accelerated shift to e-commerce brought on by the COVID-19 pandemic. Specifically, criminals are stealing large amounts of goods and reselling them to unsuspecting online shoppers at reduced prices.
One ORC method that has recently come to light is flash mob robberies. Also called “smash-and-grab” robberies, these incidents involve a group of criminals swarming a retail business all at once (sometimes with weapons), overwhelming staff and law enforcement on the scene, and attempting to steal mass amounts of merchandise. Flash mob robberies have become more common, costly and violent over the past year, drawing widespread concern from retail businesses and their employees.
The following article provides more information on this ORC method, details about the latest flash mob robberies and possible measures to prevent such incidents.
What Are Flash Mob Robberies?
Flash mob robberies are not crimes of opportunity. Rather, these incidents are planned ahead of time by a coordinated group of criminals—whether it’s five or 100 people. According to data from the NRF, 79% of retail businesses have experienced multiple-offender crimes in the last year, with 10% of these incidents involving characteristics of flash mob robberies. In recent incidents, flash mob robbery plans have often resulted from criminals communicating over social media platforms.
When such an incident occurs, the group of criminals typically approaches the target retail business all at once, making it more difficult for employees or law enforcement to stop them. These criminals may simply rely on the size of their group to carry out the robbery without being apprehended or potentially leverage weapons and acts of violence to further deter anyone from intervening in their plan. For instance, criminals may utilize the following tactics:
- Breaking storefront glass or display cases
- Carrying guns, knives, sledgehammers or crowbars
- Engaging in physical assault (e.g., punching, slapping, kicking or biting)
- Using pepper spray or other chemical irritants
After swarming the target retail business, the group of criminals usually attempts to steal large amounts of merchandise quickly before promptly fleeing the scene. In some cases, certain criminals may be responsible for waiting outside the business with a vehicle (or several vehicles) to help the rest of the group exit the premises as fast as possible following the robbery.
Because flash mob robberies are group activities, it’s rare for every criminal involved in such incidents to get caught. Although a handful of criminals may be apprehended on the scene, the number of people involved in these robberies makes it easier for criminals to escape without consequences—thus allowing them to plan and be involved in future incidents.
Recent Flash Mob Robberies
Retail businesses across the country have been impacted by flash mob robberies, including independent shops and large corporations. Here are some of the latest incidents that have taken place:
- Nordstrom—A group of five criminals sprayed a security guard with a chemical irritant before stealing $25,000 worth of handbags from a Nordstrom store in Los Angeles, California. In another incident, 80 to 90 criminals targeted a different Nordstrom store in San Francisco, California—utilizing pepper spray, crowbars, knives and firearms to attack employees and fleeing the scene with $100,000 worth of goods. Only three individuals were apprehended amid the incident.
- Louis Vuitton—In Chicago, Illinois, a group of 14 criminals stole over $120,000 worth of merchandise in under 60 seconds from a Louis Vuitton store. The criminals physically assaulted employees who tried to stop them and leveraged three escape vehicles to swiftly exit the premises.
- Sunglass Hut—A group of four criminals physically assaulted employees at a Sunglass Hut in Monterey, California, before stealing nearly $30,000 worth of goods and promptly fleeing the scene.
- Best Buy—In a suburb of Minneapolis, Minnesota, between 10 and 15 criminals invaded a Best Buy store and stole a range of electronics—including televisions, computers and tablets. A similar incident involving 20 to 30 criminals also took place at a different Best Buy store in a nearby suburb.
- Jewelers—A group of nine criminals used sledgehammers to smash display cases and steal a variety of jewelry from Iceberg Diamonds, a store located in Concord, California. The criminals did so in less than one minute. In another incident, 30 to 40 criminals targeted Sam’s Jewelers in San Jose, California, also smashing display cases with sledgehammers and stealing several products.
Prevention Strategies
Flash mob robberies can carry numerous consequences for impacted retail businesses. In addition to lost merchandise, property damage and substantial recovery costs, these incidents can seriously threaten the safety of retail employees and other customers at the scene.
As such, it’s critical for retail businesses to utilize proper strategies for preventing and responding to flash mob robberies. Some risk management measures for consideration include the following:
- Train employees. Be sure to train retail employees on how to detect and respond to potential signs of a flash mob robbery. These signs may include a sudden emergence of excess vehicles in the store parking lot, a large group of people congregating outside the store or quickly heading toward the storefront, and customers who look like they may be carrying dangerous items or weapons. Employees should be stationed throughout the store during their shifts to be able to detect these signs. Furthermore, train employees on ways to safely mitigate violent incidents. Employees should know to never put their personal safety at risk to stop a robbery.
- Utilize security systems. In addition to training employees, make sure to equip the store with various security systems to help deter criminals. This may include security cameras, laminated glass, merchandise sensors and alarm systems. It’s also important to consider security elements that can hinder criminals from fleeing the scene of a flash mob robbery, such as fog systems, strobe lights and roll-down gates. Hiring dedicated security personnel may also offer further protection.
- Ensure proper product placement. To prevent criminals from stealing high-value merchandise, it’s best to place these goods in elevated areas that can’t be easily reached without assistance. To minimize overall losses amid a flash mob robbery, place limited amounts of each product on store shelves and keep the excess inventory in a secure area.
- Work with law enforcement. Build strong relationships with local law enforcement and ORC prevention coalitions and follow any guidance they provide for avoiding flash mob robberies. Also, consider asking these parties to help monitor social media platforms for potential ORC plans or other suspicious activity.
- Establish an emergency response plan. In the event that a flash mob robbery does occur, it’s crucial to have response protocols and lockdown procedures in place. Be sure to create a documented emergency response plan to minimize losses and protect employees (and customers) amid such an incident. Although specific response plan measures may vary between stores, employees should be instructed to contact the appropriate authorities if they detect signs of a flash mob robbery. When a robbery begins, employees should know how to implement the necessary security systems, shut down the store and protect themselves from harm. This response plan should be regularly reviewed and updated as needed.
- Secure adequate coverage. Lastly, it’s critical to ensure the proper protection against losses related to flash mob robberies by purchasing sufficient coverage. Commercial property insurance typically offers reimbursement to retail businesses that experience losses from theft or ORC. Consult a trusted insurance professional for further information on coverage solutions related to flash mob robberies.
For more industry-specific risk management guidance, contact us today.
- Published in Blog
A Pie of Lies!
By Diana Stewart, Executive Account Manager
I was looking for a Pumpkin recipe for an office potluck when I saw an article by Emma Crist about canned pumpkin. Intrigued, I read further. Apparently, (are you sitting down?) it’s not actually pumpkin! So, I started to wonder; If Pumpkin is not Pumpkin, then what in the canned world is it?! When is 100% of something not 100% real?
This short, funny article is a great read about why we have been deceived and why it’s perfectly legal to masquerade squash as pumpkin. I can 100% “squash” the idea that traditional pumpkin is unsuitable for cooking, because I have made some delicious pumpkin pies from scratch using only Halloween pumpkin puree! No more canned stuff for me. I think I’ll go back to making Sweet Potato Pie… which is of course made with Yams!
Check out this article at: https://www.yahoo.com/now/just-found-canned-pumpkin-isnt-131200963.html
- Published in Blog
Creating A Psychologically Safe Work Environment
This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.
Several work dynamics can make the team successful. One of the most crucial ones is psychological safety. Being psychologically safe means you feel secure in taking risks and being vulnerable in front of others. In a work environment that fosters this security, you believe you won’t be punished or humiliated for speaking up with ideas, questions, concerns or mistakes.
This article explores the concept and benefits of psychological safety and how you can contribute to and be part of a positive and psychologically safe work environment.
The Stages of Psychological Safety
According to research, you may progress through four sequential stages of psychological safety:
- Inclusion safety—You feel safe and accepted to be who you are in the work environment.
- Learner safety—You feel safe to learn, ask questions and experiment. You’re also open to giving and receiving feedback.
- Contributor safety—You feel safe to make a valuable contribution using your skills and gifts.
- Challenger safety—You feel safe to challenge the status quo when you see room for change or improvement.
After progressing through those four stages, you are likely comfortable speaking up in the workplace.
The Importance of Psychological Safety
Creating a workplace environment in which employees feel comfortable taking risks is essential to workplace innovation. Psychological safety is crucial because it:
- Enhances your workplace engagement
- Improves your well-being
- Inspires creativity and ideas
- Fosters an inclusive culture
Creating a psychologically safe work environment is intentional, but it can positively impact you and the overall work culture. Achieving this type of security can also have unique challenges in remote and hybrid workplaces, as that culture extends beyond the physical workplace.
Contributing to the Work Environment
Psychological safety typically hinges on organizational leadership, but there are ways that every employee can challenge or influence workplace cultural norms. Consider the following ways you can help support a psychologically safe work environment:
- Be curious. Don’t be afraid to ask questions or ask for peer or manager feedback. Adopt a learning mindset by accepting you don’t have all the facts and can learn from others.
- Listen actively. Active listeners can make others feel valued by avoiding distractions (e.g., phones) and demonstrating understanding during meetings. If you’re working remotely, turn on your camera in meetings so it’s apparent you’re paying attention and engaged.
- Communicate effectively. It’s essential to set clear expectations for timelines and goals. If you’re working in a hybrid work environment, it’s even more crucial to check in often to lower the chances for miscommunication.
- Have an open mind. Approaching tasks or challenges from a different angle can help bring perspective. Consider feedback to be constructive and meant to strengthen the team’s ideas or processes. Also, think about how you’re responding to feedback or input. It comes down to being open to ideas or views that differ from your own.
- Foster a safe environment. Co-workers may not speak up due to the fear of being judged. To help encourage a psychologically safe environment, be sure not to interrupt and never blame others. The goal is to ensure people feel like their out-of-the-box suggestions are encouraged and considered by the team.
- Practice your awareness. During meetings or conversations, pay attention to how your words, actions and other nonverbal cues resonate with others. In a remote or hybrid work environment, video calls can help with observing how you’re being received.
- Recognize courageous acts. It’s vital to give praise or acknowledge when a co-worker shows vulnerability, offers a new idea or shares a mistake. It can be challenging for people to speak up, so it’s important to make sure they don’t feel embarrassed or unheard after expressing vulnerability.
- Support others. If your work or opinions are often embraced, use your influence to empower others who may be underrepresented. Some simple ways to do that are to highlight their accomplishments to others or recommend them for projects or assignments.
A psychologically safe work environment centers on respect. Practice these steps personally and speak up or intervene if you see others not being respectful. The safer the work environment, the stronger and more successful you and your co-workers can be.
Conclusion
Psychological safety is a key work dynamic that takes time to build but just moments to destroy. It comes down to being human in your work environment and creating opportunities for open feedback and dialogue. If working in a remote or hybrid work environment, you’ll have to be even more intentional with showing appreciation for co-workers and acceptance of their ideas, thoughts and discussions.
Talk to your manager if you have concerns or questions about psychological safety in your work environment.
- Published in Blog
5 Hybrid Work Model Mistakes to Avoid
This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.
The COVID-19 pandemic forced businesses to adapt and test their operational capacities. One of the most common pivots has been remote work.
Now that workplaces are reopening, a significant number of employees want to retain their remote status. In fact, 58% of workers said they want a fully remote position, and only 3% said they wanted to return to fully in-person work, according to a recent FlexJobs survey.
So, how does a business that wants to utilize its in-person workspace deal with employees who want to stay home? For some, the answer is a hybrid work model.
Under this arrangement, employees work in person some of the time and from home the rest of the time. This can be a great compromise for a workplace, and it’s gaining popularity among employers. Many organizations are now exploring their own forms of hybrid work models.
While increased adoption of hybrid models is great news for many employees, it only works when implemented properly. That’s why it’s critical for employers developing hybrid strategies to understand potential pitfalls and adapt as necessary.
To that end, this article discusses five common hybrid work model mistakes and how to avert them.
1. Inadequate Policies
The success of any workplace program hinges on how well it can be executed. When it comes to hybrid work models, employers must have a clearly defined policy detailed in writing. Otherwise, employees and their managers won’t understand expectations, leading to confusion, improper conduct, missed deadlines and other issues.
A good hybrid work policy might include the following details, among others:
- Who is eligible for hybrid work
- How many days a week an employee is expected to work in person
- Which days and core hours an employee is allowed to work (i.e., only Monday-Friday during business hours)
- What technology is available for employees to use at home (i.e., monitors, keyboards and other equipment that may be taken home for remote work)
- Contact point for employee questions regarding scheduling
- How in-person work will function regarding shared workspaces, as applicable
2. Unfamiliar Leadership
While many employees may want to work remotely at least some of the time, that’s not always the case with company leadership. In other words, the individuals with decision-making power might not understand what working from home entails. This can be problematic when these same people write and enforce workplace policies.
To ensure a quality hybrid work model, it’s important for policy stakeholders (e.g., management) to try it out as well, even for just a few days. Organization leaders will be better poised to spot policy blind spots after experiencing the arrangement themselves.
3. Inconsistent Communication
Staying up to date on timely developments and communication is a constant struggle for most workplaces. It can be even harder for remote workers to stay updated. This is especially the case when an organization uses varying channels for communication. While multichannel communication is generally an effective tool, employees still need to know where to expect messages to come from.
Employers exploring hybrid work models should consider standardizing which communication tools they use instead of relying on each team to pick their favorite platforms. For instance, a workplace may decide to send all communications through Microsoft Teams and Outlook. That way, employees will know to check those platforms for any critical messages.
Moreover, digital communication solutions are the best option for hybrid employees since they can reach anyone. In other words, utilizing announcement boards or similar in-person methods won’t be sufficient for a hybrid team.
4. Inequitable Celebrations
Employee celebrations are an important part of the workplace. Employees need to feel like their contributions are valuable to the organization, and praising their work is a great way to do that.
Unfortunately, not every celebration method is conducive to a hybrid work model. Consider events such as luncheons, team meetings with treats, workplace outings or other such celebrations. Some hybrid employees might not be able to attend these gatherings due to their schedules or work locations.
That’s why employers with hybrid workers should consider equitable ways to celebrate employee success. Methods might include virtual events (e.g., Zoom meeting), emails from management or electronic gift cards. Specific celebrations will vary by organization and workforce.
5. Insufficient Equipment
Workers that will be operating from their own homes, even partially, will need adequate technology. Ignoring this aspect can lead to poor productivity and cause a hybrid work model to fail before it even beings.
This means employers will need to consider how to set these workers up for success. Considerations include:
- What technology can workers bring home with them?
- Will workers be reimbursed for purchasing office equipment for their homes?
- Will workers be reimbursed for internet bills?
Additionally, employers should consider what additional training may benefit hybrid workers. For instance, they may need help connecting to an organization’s virtual private network on their home Wi-Fi.
Conclusion
Hybrid work models can provide flexibility to workers while still maintaining operational productivity—but that’s only when properly implemented. Simply allowing workers to float in and out of the office without a solid policy can lead to a variety of issues.
Reach out to RISQ Consulting for more guidance related to remote and hybrid work, including resources to help employees succeed in this emerging landscape.
- Published in Blog