Preventing Employee Fraud

The Association of Certified Fraud Examiners revealed that approximately $994 billion were lost as a result of employee fraud.  While fraud is common place, it is more prevalent during hard economic times.  Some reasons may be economic pressure, rationalization and opportunity.  Take steps to minimize the risk of becoming a victim.  Learn to detect and identify early signs of employee fraud, effectively supervise your employees, and take appropriate action if you suspect an employee is stealing from your business.

Early Warning Signs

The best offense is a good defense.  Be vigilant, know the practices of your company and behavior of employees.  There are certain factors and behaviors that may alert you to possible fraud.

• Employees who will not take vacation
• Employees who will not delegate work to coworkers
• Employees who act differently or live outside of their means
• Employees who have too much authority
• Inconsistencies in the employee's reports
• Failure of an employee to provide supporting documentation or stalling when asked for it
• Lack of established financial controls
• Unexplained shortages in your financial books
• Unsupported documentation for expense reimbursements

Contact Ben Goodwyn Agency for more information. 972.618.0100

Can you be the victim of a cyber attack?

After a survey of more than 160 risk managers from a variety of industries, it was found that 73% of companies have NOT purchased network-liability policies.  This in lieu of the fact that the threat of cyber attack is increasingly real.  Of the companies that have not purchased network-liability policies, 37% say their own IT department is sufficient, and 15% say that either they are not concerned about the risk, or that a risk transfer policy is too expensive.

This may be in part due to the fact that while word of security breaches has made the news, the big lawsuits following them have not.  Once those first couple of big cases have made the news, more companies will purchase network-liability policies.

For more information about network-liability, contact Shelly at Ben Goodwyn Agency. 972.618.0100.

Pool Safety

If you have a pool, Ben Goodwyn Agency suggests taking the following safety precautions:

1. Completely surround the pool with a four-sided barrier such as a fence with self closing gates. If the house opens into the enclosed area, install alarms on doors leading to the pool area to prevent children from wandering into the pool or spa unsupervised. Consider creating several “layers of protection” around the pool, in other words setting up as many barriers (door alarms, locks and safety covers) as possible to the pool area when not in use.
2. Never leave small children unsupervised—even for a few seconds. Also never leave toys or floats in the pool when not in use as they may be a deadly temptation for toddlers trying to reach them who might then fall into the pool.
3. Keep children away from pool filters (and other mechanical devices) as the suction force may injure them or prevent them from surfacing. Know how to shut off these devices and clearly post this information so others can do so too in case of an emergency, .
4. Ask if pool users know how to swim. Learners should be accompanied by a good swimmer. If you have children, have them take swimming lessons as early as possible. And, do not allow anyone to swim alone.
5. Check the pool area regularly for potential accident hazards. Keep CD players, radios and other electrical devices away from pools or nearby wet surfaces.
6. Limit alcohol use around the pool. Drinking alcoholic beverages negatively impacts balance, coordination and judgment—and its effects are further heightened by sun exposure and heat. The Centers for Disease Control  reports that alcohol use is involved in up to half of adolescent and adult deaths associated with water recreation.
7. Clearly post emergency numbers on the phone, in the event of an accident. Keep a first aid kit, ring buoys and reaching poles near the pool. You may also want to consider learning basic water rescue skills, including first aid and CPR training. For additional information, contact the American Red Cross.

Contact Ben Goodwyn Agency at 972.618.0100 or www.bengoodwynagency.com

What are your chances?

The number of victims of identity theft in 2009 rose to 11.1 million. That's nearly 5% of the U.S. adult population with a new victim every 3 seconds.

There are steps you can take to protect what you've worked hard to earn.

The Hartford's howowners insurance protection will help restore or protect customers with the financial impacts of identity theft - through The Hartford's ID Fraud Expense Coverage. They have qualified fraud specialists providing one-on-one attention if they have been victims of identity theft as well as proactively offering steps to avoid becoming a victim.

You can be reimbursed for lost income due to time off work that is necessary to speak with credit agencies AND legal fees incurred to remove criminal or civil judgments resulting from fraud.

Contact Shelly at Ben Goodwyn Agency 972.618.0100

Are you adequately insured?

The news headlines the past few weeks have included stories up tornadoes killing hundreds of people and leveling entire communities.  This week we are hearing about the floods expected in communities bordering the Mississippi River and expected to incur millions of dollars in flood damage.  Even winter storm losses in 2010 reached $2.6 billion (one of the top five worst winters for property damage).

Now is a good time to evaluate your homeowner insurance coverage and disaster preparedness plans.

A U.S. government site that is offered is at tinyurl.com/2n2z3p.

A glossary of terms you should be familiar with is available at A.M. Best:

Replacement value - The dollar amount needed to replace damaged personal property or dwelling property without deducting for depreciation but limited by the maximum dollar amount shown on the declarations page of the policy.

Named Perils - Perils specifically covered on insured property.

Deductible - Amount of loss that the insured pays before the insurance kicks in.

You can also access information regarding disaster preparedness at FEMA's website.

Contact Shelly at Ben Goodwyn Agency for more information 972.618.0100.

What is professional liability insurance? What does it mean to you?

This professional liability insurance protects you if a client claims that your services caused them to suffer a financial loss.  Many times used for lawyers, architects AND insurance agents.  For more information contact Shelly @ Ben Goodwyn Agency 972.618.0100.

Pet Insurance

Did you know that every year 18% of travelers take their pets on vacation?

Here are a few tips to make your road trip safer for them

• Call to make sure your pet is welcome at your destination.
• Make sure ID tags are updated and includes your cell phone number.

Pet injury coverage is free with Progressive Insurance if you carry comprehensive and collision coverage on your car, boat or RV.  They pay bills up to $1,000 if your dog or cat is hurt when you're in an accident.

Contact Ben Goodwyn Agency for more details. 972.618.0100

Network Security Risks

It is reported by McAfee (internet security services company) that 21% of midsize organizations in the United States had an IT security incident that caused financial loss in 2008. It is very important for employers to implement a policy on the proper use of their electronic equipment and computer network.

We recommend you read two McAfee reports. "McAfee Report on Spyware Traps", and "McAfee Report on IT Security for Mid-size Business."

Travelers Wrap and Travelers Executive Choice insurance offers its customers who have employment practices liability insurance an endorsement for "Computer, Internet, and Network Usage" at no additional charge.

Call Ben Goodwyn Agency 972.618.0100 to receive a copy of these two important reports.

Car Accident Trivia

Did you know that in closely contested major sporting events there is a significant increase in traffic fatalities for fans of the WINNING team.  It's true!  Games rated as "nail biters" are far more likely to result in traffic fatalities - but only for the fans of the winning team.

Testosterone increases for the fans as well as the players.  While the levels drop for the fans of the losing team, it is hypothesized that it spikes for the winning side.

Ben Goodwyn Agency is an independent insurance agency that offers comprehensive auto coverage for fans of any team.  Call us at 972.618.0100.

Fire Prevention Tips

Greater than half of all fatal house fires occur while people sleep.  Are your smoke detectors operative?  There should be at least one smoke detector for each level of your home (including attic and basement).

When installing smoke detectors, put one both inside and outside all sleeping areas.

If they are hard wired, you need to have a qualified electrician do the initial installation or replacements.

Read the manufacturer's installation instructions.  Battery powered smoke detectors usually need to be replaced once a year.  The unit should be replaced every 8-10 years.

If your home's smoke detectors are powered by electricity, have at least one battery powered detector in case of power outage.

Test smoke detectors monthly.

If you have children, test alarms while they are asleep to make sure they will wake them up.

For more information, visit the USFA website at www.usfa.dhs.gov/citizens.

Tornado Damage Impacts Business Owners Too

Homeowners are not the only ones affected by storm damage.  Business owners suffer immense property damage and more.  When the business cannot open its doors to their customers, they suffer additional loss of business income/profits when normal business operations are disrupted.

Ask yourself the following:

Can we operate at a temporary location rather than suspend operations?

Will your business be interrupted because of a loss at one of your suppliers?

What would happen if one of your service provideers (electric, fuel, water, heat, refrigeration, communication, etc) suffered a loss?

Are there any state ordinance or law requirements/code upgrades that would delay your return to business?

For further information, please contact Shelly at Ben Goodwyn Agency in Plano.  972.618.0100