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7 Tips to Protect your Business from the Risks of Remote Employees

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5 ways to Bolster your IT Security Strategy with Employee Training

Few types of coverage are quite as misunderstood as Equipment Breakdown insurance. Though brokers and buyers are becoming more informed, there remains a common misconception that Equipment Breakdown only provides coverage for conventional equipment such as pressure vessels and mechanical machines. But this is not your father&rsquo;s (or your grandfather&rsquo;s) Boiler and Machinery insurance. Equipment Breakdown is an essential coverage for almost any business. While many owners and operators think losses related to equipment breakdown are covered under their Property policy, there are exclusions that Equipment Breakdown insurance is designed to fill. Not only does Equipment Breakdown insurance cover equipment that needs to be repaired or replaced, it also covers losses due to business interruption. For example, if key equipment is damaged, a company may not be able to continue their operations right away, which could have big financial and reputational impacts. Or, if a company has a refrigeration breakdown, it would be very costly to throw out spoiled product. Equipment Breakdown coverage helps companies mitigate revenue losses and get back in business as quickly as possible. So why has Equipment Breakdown coverage been widely misunderstood? A quick history lesson: Boiler and Machinery insurance was created during the Industrial Revolution to protect companies with steam boilers from the risk of explosion or other major breakdown. Over the ensuing decades, the coverage evolved to include a broader range of equipment and electronics, including computers, copiers and phone systems. Understandably, the Boiler and Machinery moniker led many people to believe that if their business didn&rsquo;t have a boiler or machinery risk, they didn&rsquo;t need the coverage. That necessitated new terminology&mdash;Equipment Breakdown insurance&mdash;which came about in the late 1990s. Today, Equipment Breakdown insurance is all-encompassing, ranging from HVAC equipment, to production machinery equipment (Computer Numerical Control &ndash; CNC - machines), to all types of electrical and technology equipment. However, there&rsquo;s still a lack of understanding about how essential this coverage is for just about every business. To keep Equipment Breakdown insurance top of mind among brokers and insureds, education is key. With the constant influx of new technologies and cutting-edge equipment, brokers need to stay up to date on the trends and have the tools and resources to provide information to clients.

Why equipment breakdown insurance is essential for your business

Today, boilers and pressure vessels are ubiquitous in modern society and are used across many sectors, including power generation, manufacturing, agri-food, forestry and dry cleaning. 1&nbsp;But when it comes to managing the risks associated with them, many companies still aren&rsquo;t aware of the role their insurers play with regards to inspections, their responsibilities as owners and how inspections can be beneficial to their businesses. Here are three key reasons why you not only need a jurisdictional inspection, but how it can benefit your business.
<h3>It&rsquo;s the law!</h3>
First and foremost, regular inspection of boilers and pressure vessels is the law, and it&rsquo;s important for owners and operators to stay on top of any regulatory changes. In July 2018, The Technical Standards and Safety Authority (TSSA) introduced new regulations for boilers and pressure vessels in Ontario. 2&nbsp;Previously, the insurer would issue a Certificate of Inspection directly to the client. Now, boiler and pressure vessel (BVP) owners must work directly with the TSSA, which will issue a Certificate of Inspection after the device has passed a periodic inspection and the insurer submits a Record of Inspection. Owners are required to pay a fee to the TSSA to receive their Certificate of Inspection. Ultimately, the onus is on owners and operators to comply with the law. In Ontario, if it&rsquo;s determined that the boiler or pressure vessel falls under the regulations, the owner or user is responsible for having it inspected before being put into operation (by the TSSA) and on a periodic basis after being put into service (by their insurance company). Once in operation, the insurer or third-party inspector will inspect every one, two or three years as required by the regulations. Qu&eacute;bec has similar requirements, though differs slightly in inspection frequency. In Qu&eacute;bec, if it&rsquo;s determined that the boiler or pressure vessel falls under the regulations, the owner or user is responsible for having it approved before being put into operation by the R&eacute;gie du b&acirc;timent du Qu&eacute;bec (RBQ). 3&nbsp;After being put into service, the boiler or pressure vessel is then inspected on a periodic basis by a person or body recognized by the RBQ, which issues a periodic inspection certificate. The inspection frequency varies, and may be a one, two, three or four-year cycle depending on the type of boiler or pressure vessel. Insurance companies are valuable partners in this regard. They can help companies determine if their vessel falls under the regulations and what the inspection requirements are, as well as help them comply with the regulations.
<h3>It&rsquo;s a matter of safety</h3>
In any jurisdiction, the primary reason boilers are periodically inspected is to verify compliance with safety requirements. Boilers can explode, causing property damage, injuries and deaths 4, so ensuring the safety of people who are in the vicinity of the unit &mdash;whether they&rsquo;re employees or members of the public &mdash; is job number one.
<h3>It can save you money</h3>
Beyond the critical importance of safety, regular inspections have bottom-line benefits for owners and operators. For example, a common discovery during inspections is the formation of scale on the heat transfer surfaces of the boiler. 5 Scaling reduces the rate of heat transfer across boiler tubes, and the reduced efficiencies result in increased energy costs. 6&nbsp;&nbsp;While regular maintenance and proper upkeep is imperative, an inspector&rsquo;s expertise can help ensure efficient operation and extend the life of the equipment. Though explosions are rare considering the sheer volume of boilers in operation around the world, they can also be very costly to businesses. First, there&rsquo;s the damage from the explosion itself, and then there&rsquo;s the cost of replacing the units. Insurance is the obvious way to reduce financial impacts in the event of an accident &ndash; but you need the right coverages in place. For example, it&rsquo;s important to note that losses to equipment aren&rsquo;t always covered under Property policies and there are exclusions that Equipment Breakdown insurance is designed to fill.
Sources
1&nbsp;Ontario&rsquo;s Regulatory Registry:&nbsp; <a https:="" www="" ontariocanada="" com="" registry="" view="" do="" postingid="24227&amp;language=en&quot;&quot;" href="https://www.ontariocanada.com/registry/view.do?postingId=24227&amp;language=en">Boilers and Pressure Vessels Regulatory Review</a>&nbsp;June 2, 2017 2&nbsp;TSSA:&nbsp; <a noreferrer="" noopener="" https:="" www="" tssa="" org="" en="" boilers-pressure-vessels="" resources="" documents="" bpvcoi="" bpv-regulation-change-notice-for-device-owners1="" pdf="" target="_blank" _blank="" href="https://www.tssa.org/en/boilers-pressure-vessels/resources/Documents/BPVCOI/BPV-Regulation-Change-Notice-for-Device-Owners1.pdf" aria-invalid="true" rel="noopener">Amendments to Ontario&rsquo;s Boilers and Pressure Vessels Regulation</a>&nbsp;February 2, 2018 3&nbsp;B-1.1, r. 6.1 -&nbsp; <a rel="" noreferrer="" noopener="" http:="" legisquebec="" gouv="" qc="" ca="" en="" pdf="" cr="" b-1="" 1="" 20r="" 206="" target="" _blank=""></a><a href="http://legisquebec.gouv.qc.ca/en/pdf/cr/B-1.1,%20R.%206.1.pdf" title="" target="_blank" rel="noopener"></a><a rel="" noreferrer="" noopener="" http:="" legisquebec="" gouv="" qc="" ca="" en="" pdf="" cr="" b-1="" 1="" 20r="" 206="" target="" _blank=""></a><a href="http://legisquebec.gouv.qc.ca/en/pdf/cr/B-1.1,%20R.%206.1.pdf" title="" target="_blank" rel="noopener">Regulation respecting pressure installations</a>&nbsp;Updated November 1, 2019 4&nbsp;Engineering 360:&nbsp; <a rel="" noreferrer="" noopener="" https:="" insights="" globalspec="" com="" article="" 2044="" training-and-vigilance-key-to-preventing-boiler-accidents="" target="" _blank=""></a><a href="https://insights.globalspec.com/article/2044/training-and-vigilance-key-to-preventing-boiler-accidents" title="" target="_blank" rel="noopener" aria-invalid="true">Training and Vigilance Key to Preventing Accidents</a>&nbsp;February 2, 2016 5&nbsp;The National Board of Boiler and Pressure Vessel Inspectors:&nbsp; <a rel="" noreferrer="" noopener="" https:="" www="" nationalboard="" org="" index="" aspx="" pageid="164&amp;ID=224&quot;&quot;" target="" _blank=""></a><a href="https://www.nationalboard.org/Index.aspx?pageID=164&amp;ID=224" title="" target="_blank" rel="noopener">Water Maintenance Essential to Prevent Boiler Scaling</a>, accessed August 22, 2019 6&nbsp;U.S. Department of Energy:&nbsp; <a rel="" noreferrer="" noopener="" https:="" www="" energy="" gov="" sites="" prod="" files="" 2014="" 05="" f16="" steam7_surfaces="" pdf="" target="" _blank=""></a><a href="https://www.energy.gov/sites/prod/files/2014/05/f16/steam7_surfaces.pdf" title="" target="_blank" rel="noopener" aria-invalid="true">Clean Firetube Boiler Waterside Heat Transfer Surfaces</a>, accessed August 22, 2019

Why do you need a jurisdictional inspection?

Despite the rise of automation and artificial intelligence technologies, the vast majority of business that gets conducted relies on some sort of human interaction or connection. Employees are an organization&rsquo;s greatest asset, but also remain every organization&rsquo;s weakest link when it comes to defending against a cyber breach. You can implement the latest firewall technology and employ a genius Chief Information Officer, but if all staff members aren&rsquo;t aware of the types of scams that cyber criminals are trying to pull, then chances are your organization could fall victim to a social engineering attack.
<h3>What is social engineering?</h3>
Simply put, social engineering is a form of psychological manipulation that targets the user rather than the computer itself &ndash; and it&rsquo;s proving to be very effective for cybercriminals. It plays on our universal human traits of fear, trust and conformity to get access to information, all without hacking into a system or cracking a code or password.

<blockquote>
Your first line of defense might be to invest in antivirus software and firewall (software and physical versions) with intrusion detection capabilities &ndash; and that&rsquo;s a great start. But that won&rsquo;t account for human weaknesses, like a lack of attention to detail or an all too trusting nature.
</blockquote>
<h3>The impact on your business</h3>
If organizations don&rsquo;t take measures to educate and train their employees on social engineering tactics, it&rsquo;s more likely that they&rsquo;ll fall for scams, get hacked, experience a breach and become the victim of fraudulent wire transfers. Any of these events can be incredibly costly and could impact the company&rsquo;s reputation. And this can be repeated multiple times if the bad guys find a &lsquo;good victim&rsquo;. In addition to the monetary impact, being scammed doesn&rsquo;t feel good and can take an emotional toll on your employees.
<h3>Phishing tactics</h3>
Phishing is a technique where cybercriminals send fake emails, texts or websites that look like legitimate correspondence to manipulate employees into gaining access to corporate systems or information. It uses social engineering tactics by deceptively preying on employees&rsquo; emotions and relying on them to mistakenly hand over access to target information.
A phishing breach usually occurs when a hacker gets the structure of an organization&rsquo;s email addresses and then sources a list of names of company employees, usually from LinkedIn or the company&rsquo;s own website.
Similarly, a cybercriminal could get the log in details to a company executive&rsquo;s email address and send out emails to other employees directly from that account. They could then either request sensitive information or ask them to send wire transfers on behalf of the company. In many cases, the employee receiving that email will think the request is legitimate and provide the sensitive information or transfer the funds.
Another form of phishing sees hackers send out emails &ndash; again appearing to be from a legitimate email address &ndash; containing a link or attachment.
That link can do a couple of different things: it can send them to a web page with a form which asks them to provide personal information, it can include spyware to gather information on the company (and its employees and clients), or it can include a ransomware file attachment which activates when downloaded. That file will encrypt the files on the user&rsquo;s computer and only unencrypt them when a ransom is paid to the criminal&rsquo;s bank account.
<h3>Tips to protect your business</h3>
Social engineering is something that can be mitigated if employees are well educated. Your first line of defense might be to invest in antivirus software and firewall (software and physical versions) with intrusion detection capabilities &ndash; and that&rsquo;s a great start. But that won&rsquo;t account for human weaknesses, like a lack of attention to detail or an all too trusting nature. That&rsquo;s why it&rsquo;s so important to educate employees on social engineering and phishing, and the specific tactics they should look out for. This can help foster a culture in which employees are alert and cautious with information whether they&rsquo;re online or in-person.
Encourage employees to follow the steps below to reduce the chances of social engineering impacting your organization:
<ul>
<li>Avoid opening emails from unknown email addresses</li>
<li>Create better, stronger passwords &ndash; and change them regularly</li>
<li>Avoid less than reputable internet sites, web and smartphone applications</li>
<li>Cut down on the amount of biographically accurate information you divulge online (e.g. listing your birthdate on social media)</li>
<li>Only use trusted sites when online</li>
<li>Don&rsquo;t click on links you&rsquo;re sent. Instead, open the webpage on your own by typing in the URL yourself to make sure you&rsquo;re going to a legitimate site and not a phishing scam site</li>
<li>Log out of Facebook and other social media accounts when you&rsquo;re not using them and before you close your browser window</li>
<li>Don&rsquo;t choose &ldquo;save my password&rdquo; or &ldquo;remember me&rdquo; when logging onto any type of account, as these credentials can be stolen by hackers</li>
<li>Follow the company&rsquo;s &ldquo;new vendor/account change&rdquo; protocol to verify clients before sending wire transfers above a certain predetermined threshold. This could involve requiring employees to call vendors (using the phone number in your files, not the one in the email) before making the transfer.</li>
</ul>

7 Tips to Protect your Business from the Risks of Remote Employees

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