THE HMK INSIDER Fall 2022
A Message from HMK President, Tim Kurtz Welcome to the Fall edition of The HMK Insider. One of HMK’s Guiding Principles is to give back to the communities in which we live and do business in. This was exemplified by our staff again this year with flying colors. Our office has raised over $6,000 this year to date for charitable and volunteer causes. Our largest project was the Lehigh Valley Volunteer Challenge as our Volunteer Committee chose to complete an outdoor project replacing a fence and repairing an outdoor train for Mercy School for Special Learning. The results of this project are highlighted later in this edition of our newsletter. While this was our major project this year, our staff works throughout the year supporting many causes which included a food drive benefiting the Hispanic Center Food Bank, an animal food drive benefiting the Animal Food Bank of the Lehigh Valley, the HMK Pumpkin Path which provides children with special needs the opportunity to trick or treat in a safe and controlled environment, and Holiday Hope Chests benefiting the Volunteer Center of the Lehigh Valley for local children in need of gifts and clothing around the holidays. The money raised by our Volunteer Committee for these projects is collected through internal office bake sales, contests, silent auctions, bingo, jeans days, and other creative fund raisers our staff participates in. None of the money is raised outside of HMK so it is our employees giving their own money to support these volunteer and charitable causes with the agency matching whatever is raised by our staff. I am so proud of our staff’s generosity and caring as we support the community and those less fortunate, and they are truly “living” one of HMK’s most important Guiding Principles. It is part of what makes HMK an office family one of the reasons people choose to work and stay at HMK. A special thank you and recognition to our current Volunteer Committee – Julie Stocker, Kellie Eschbach, Kara Kochenash, Cheryl Anderson, Kandy Lang, Brittanie Hummel, Jacki Kilgour, Jeni Green and Ally Musike. Their hard work and dedication to HMK’s volunteer and charitable efforts is appreciated by everyone, no one more so than me. I hope you enjoy the Fall 2022 edition of The HMK Insider.
Inside...
Client Spotlight: Haven House
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The Prevalence of Cyber Liability
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Inflation and Healthcare
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HO Policy: What’s Not Covered
Employee Spotlights Upcoming Webinars
Community Giving
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HMK Client Spotlight: Haven House Interview with Jessica Katzbeck, NCC, MS, Executive Director
What is the mission of Haven House and what services do you offer to our community? Our mission is to empower individuals to overcome barriers in their lives, provide them with support, and an opportunity to reach their full potential. Our vision is to create a stigma-free community in which those with barri- ers can thrive towards independence and accomplishment. We are an Out- patient Psychiatric Facility providing mental health treatment to more than 4,000 unique individuals per year. In addition to our outpatient services
we have 5 other programs that provide mental health services: Psychiatric Rehabilitative Service Program, Wellness Recovery Team, Mental Health and Aging Program, and THRIVE and STARTS Programs which provide re-entry services to individuals returning from jail. Has the evolution of how society views mental health impacted your work? Yes. Over the past several years, I believe societal views of mental health have changed dramatically. Mental health is losing the stigma slowly but surely. The media has been doing a good job of breaking down the previous views and stereotypes of individuals living with mental illness. Historically, individuals living with mental health struggles often avoided seeking treatment because of the shaming or embarrassment. We continue to find ways to remove barriers and expand services. Can you give a real-life example of how the work Haven House has directly impacted the life of an individual? Haven House is fortunate to have had a positive impact on many lives. For many, mental health treatment is forever, and ongoing treatment is a success. Many Individuals have maintained their mental health treatment in order to live a healthy life. We celebrate all successes, big and small. We have many individual success stories, but we try to focus more on the bigger successes: our retention rate, our reduced waiting list, staff retention, and overall community support. What are three best practices you can share on operating a successful non-profit? 1. Invest in your staff to the best of your ability. Without them, there is no non-profit. They are your greatest asset. 2. Be a part of the community you serve. The community can be pivotal in the success of a nonprofit. 3. Be flexible. No day is ever the same and always be ready for the unexpected. How do you support your Haven House team that brings to life your mission? We try to appreciate our staff in the best ways we can. With limited funds, we have to be creative. We try to be as supportive as possible, always be available, and lead by example. What do your volunteers/staff find most rewarding in working for/with Haven House? The clients. That is why we do what we do! Do you have any new programs or facilities that you are excited about? Haven House has just added a food pantry that we will be opening up for our clients, and in the next month or two, the community. We hope to utilize some of our clients to help stock shelves, pack bags, and maintain the space to promote working on their job skills. How can the community support Haven House? Donations. With the opening of the new food pantry, we are hoping to keep it stocked! Hygiene products, nonperishable food, socks, gloves, blankets, cleaning products, etc. We are going to work hard to keep the pantry stocked and ready to go. You can donate raffle items, attend our fundraisers, and spread the word on the good work we are doing!
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“Cyberattack” has become a term frequently heard in the news. How - ever, what does it mean? And is it something you should worry about? “Cyberattack” is a generalized term for any attempt by hackers to dam- age or destroy a computer network or system, or to steal confidential data. Whether your business is large or small, a cyber liability policy can make the difference between recuperating after a cyberattack or having to close your doors. Below are five contributing factors in the increasing prevalence of cyber insurance. 1. Global Surge in Cyberattacks Less than 50 years ago, cyberattacks were nonexistent; seemingly the imaginings of science fiction. Today, these devastating incidents are a constant threat, and no business is immune. According to a February 2022 article in Fortune magazine written by Amiah Taylor, governments worldwide have seen a 1,885% surge in ransomware attacks, North America has experienced a 105% increase, and the health care industry alone experienced a 755% rise within the past year. Obtaining a cyber liability policy can protect your business, up to the policy limits, for incidents such as ransomware attacks, financial fraud, phishing, social engineering attacks, and business interruption expenses. 2. Hackers Are Targeting Small Businesses When imagining a cyberattack, many will picture large corporations and retail giants to be the prime targets for hackers. What they do not realize is hackers will more often target small businesses, and this trend has been steadily increasing in recent years. Although large corporations present an opportunity for a larger ransom, they are often equipped with tougher security measures and a more knowledgeable IT staff than small businesses, who often have no cyber security measures in place and are most vulnerable. According to the Forbes article, Small Businesses Are More Frequent Targets Of Cyberattacks Than Larger Companies, author Edward Segal states, “on average, an employee of a small business with less than 100 employees will experience 350% more social engineering attacks than an employee of a larger enterprise.” Another troubling fact report- ed by Business.com is the average cost of a data breach to a small business ranges from $120,000 to $1.24 million. On the other hand, the average cyber policy premium for a small business ranges from approximately $1,000 to $10,000, making the investment well-worth the cost. 3. General Increase in Employee Turnover In this post-pandemic economy, employers are experiencing a higher-than-average employee turnover rate. The current job market is incredibly competitive, offering higher salaries, enticing sign-on bonuses, and flexible hybrid working schedules. What many companies do not realize is high employee turnover poses a serious cyber security risk. The continual coming and going of employees enhances the danger of personal identifiable information (PII), personal health information (PHI), and other confidential data to be stolen or transferred elsewhere. This threat is further augmented in companies that allow employees to work from home, away from management supervision, where information can easily be stolen from a company device or transferred to a USB. Therefore, it is crucial for businesses to utilize a cyber policy that includes coverage for Data Security/Privacy Defense, Data Breach Response, and Reputation Risk. Cyber Insurance in 2022: No longer an add-on, now a must-have. By: Ally Musike, MSLS, CPCU, ARM, AAI, Commercial Account Executive
4. New Avenues for Potential Attacks In this ever-evolving, technologically advanced society, hackers are finding new avenues for potential cyberattacks. Now more than ever, sensitive information is stored digitally rather than in paper files. In addition to increasing digitalization, the covid-19 pandemic added yet another layer of complexity when it comes to cyber security. The implementation of remote working, and the usage of remote com- puters, laptops, tablets, cell phones, and even the utilization of social media platforms, all provide unique opportunities for employees to easily steal information, or for hackers to gather sensitive material and company data. While these avenues are generally invaluable to a company, such as allowing employees to work remotely, businesses to remain open, and offering new channels of marketing exposure, they can also leave a company exposed to serious cyberattacks. It has become increasingly prevalent for businesses to speak with an agent to ensure they are properly insured against these risks. 5. Growing Ransomware Demands As ransomware attacks have grown abundant, and hackers have developed more sophisticated attack methods, the cost of ransomware demands has also increased. According to the article, Ransomware attacks, payouts soared worldwide in 2021, published in Cybersecurity Dive, the prevalence and scope of ransomware exploded in 2021. The average ransom payout saw a five-fold increase from 2020 to 2021. Among organizations whose data was encrypted, nearly half paid a ransom to the adversary. Implementing a cyber policy that covers ransomware attacks is critical to the survival of a business following an incident. The costs covered by this insuring agreement include monies paid to meet extortion demands, the cost of hiring computer experts to prevent future extortion attempts, and the expenses charged by professionals to negotiate with cyberextortionists. Cyberattacks can happen to any business, large or small, at any time. A cyber insurance policy has become a must-have as opposed to an add-on for all businesses. Your trusted insurance agent is there for you to discuss cyber insurance or review your current cyber liability limits in your commercial insurance program.
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By: Michael Stocker, Employee Benefits Strategist Where are the effects of inflation on Healthcare costs?
If you have purchased (assuming you were able to find what you wanted) anything recently, you have noticed things, in general, are costing a tad more these days. Whether it is at the grocery store, the car dealership, or even the Dollar Tree (which is now $1.25), the new dirty word of 2022 is inflation . Having been a strategic consultant in the health insurance industry for nearly twenty years, inflation is something that I have unfortunately seen firsthand for most of them. So why, at a time when the overall economy is experiencing the highest rates of inflation in over 40 years, is inflation in the healthcare sector seeing a much slower rate? First off, we need to describe the two. Webster’s dictionary defines inflation as “a general increase in prices and fall in the purchasing value of money.” When it comes to healthcare, we typically consider not just the unit price increases for services, but also utilization rates as well. A combination of our population aging and scientific advancements in treatments led to many years where healthcare was seeing a significant increase in both the cost of services and the number of services being used. While both of those factors still exist, for better or worse, restrictions put in place during the COVID-19 pandemic created a situation where utilization rates fell dramatically. While hospital systems were being overwhelmed with patients, their outpatient facilities, doctor’s offices, rehab, surgical centers, etc., all sat idle. This created a huge strain on hospital systems and private practices, but insurance companies were seeing fewer claims overall, resulting in record profits. UnitedHealthcare’s stock is up 152% from March of 2020, Anthem BCBS is up 153%, CIGNA 104%, and CVS (parent company of Aetna) is up 96%. Another factor is that most insurance companies enter into multi-year agreements with providers, so their costs are set and not able to be renegotiated until the end of the term. Meaning, that even while provider costs may be increasing just like the rest of the country, their reimbursement rates from carriers are not going up now. So, are the times of seeing medical inflation outpacing general inflation gone? Well, I hope so, but sadly this is likely a case of medical inflation just needing time to catch up to the rest of the world. Hospital systems are seeing their employee costs go up due to labor shortages just like everyone else. They are experiencing increased energy costs, and their suppliers are raising their costs for equipment and supplies as well. People are starting to go back to get those elective surgeries they postponed during the pandemic. On top of that, the state and federal governments have been subsidizing providers over the last two years to keep them afloat. This money will (eventually) dry up, and they will need to make that up, which all leads to negotiating higher reimbursement rates with carriers, and higher costs for consumers. What are some things you can do to help insulate your company’s exposure to these higher costs when they eventually arrive? First off, you can provide your employees with the tools and resources to get the appropriate level of care at providers that have the best outcomes, and actively promote those resources. This could be through tools such as a healthcare bluebook, or through offering plans with built-in high-performance networks. If you do not mind doing a little extra work (or having your consultant, do it), you can also bypass the insurance companies and directly contract with the hospital systems. While you may think large insurance carriers have more leverage than you, think about who would be hurt more if a carrier like UnitedHealthcare would lose LVHN. If that were to happen, most companies would just change carriers to one that has LVHN in their network, rather than tell employees they can no longer go there. The hospitals know this, and so do the carriers. In the end, when medical inflation once again rears its ugly head, there will be tools you can use to help mitigate it. The key will be to understand what those tools are and the best ways to implement them.
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Whether you are closing on your first home or your tenth home, if there is a mortgage on the property, the lender will require that you purchase homeowners insurance to protect their interest. While this is often a busy and sometimes stressful time of our lives, it is not the time to overlook what is covered and what is not covered under a basic homeowners (HO) policy. There are situations that a HO policy does not cover, and other areas that may require you to add an endorsement to your HO policy to obtain the desired coverage. Here are the primary areas where losses may not be covered, or that may have limits on the coverage provided: Flood or Flooding: It is important to understand FEMA’s definition of flood: A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is the policyholder’s property) from an overflow of inland or tidal waters. HO policies do not cover flood. Purchasing a flood policy will help provide coverage for this type of water loss. Water/ Sewer Backup: This type of loss typically occurs when there is damage to the sewer line running from your home to the main line owned by your city or township. Sometimes this causes raw sewage to back up into the home. This can also happen when water backs up through a drain or a sump pump and can include damage by a sump pump’s failure. Water/Sewer Backup coverage can be added by endorsement onto a HO policy. This is especially important for clients with finished basements. Sinkhole: A sinkhole is when a hole forms in the ground due to water dissolving surface rock. Often the surface rock is limestone, which is easily worn away by the movement of water. Sinkhole coverage can be added by endorsement onto a HO policy. Jewelry: Jewelry is covered under your Personal Property coverage provided under the HO policy, but there is typically a limit of $1500/$2500 for theft of jewelry. By: Kellie Eschbach, Personal Lines Manager Homeowner’s Policy: What do you mean I don’t have coverage?
These tools used for financial gain can be covered by a commercial inland marine policy. Cyber Liability: If you release a computer virus, slander someone online or partake in cyberbullying, your HO policy does not cover that. While many home policies provide some coverage for identity theft, Cyber Liability is a separate coverage. Most carriers do offer a cyber liability endorsement which can be added to your HO policy. If any of these examples have you wondering if you have coverage or what it will cost to obtain or increase your coverage limits, reach out to your personal lines insurance consultant, and ask your questions! Taking the time to review your HO policy and ask your questions could mean the difference between a covered and an uncovered claim!
In Memoriam: Jade Simmers, Director of Risk Management
August marked a tremendous loss for our HMK Insurance family with the sudden passing of Jade Simmers, Director of Risk Management. Jade’s impact went far beyond our office. He was an outstanding collaborative teammate, working with our HMK Insurance office, with surrounding Alera Group locations, and with national safety groups during his time with our company. He was an empathetic, humorous, and deeply authentic conversationalist. The breadth of his risk and safety expertise made him a sought-after expert across the United States and an incredible resource to his colleagues and our clients. Jade’s legacy will continue to live on, even in his absence. Our hearts go out to his colleagues, family, and friends during this difficult time. We will all remember Jade for his incredible professionalism, down-to-earth sense of humor, and dedication to safety.
In most cases, you can endorse the HO policy with an increased amount of blanket coverage for jewelry. You can also schedule jewel- ry which would assign a specific value to individual pieces or items. Tools: Tools are typically covered under Personal Property coverage. In the event that you use your tools for financial gain (employment, side gig, or hobby), the HO policy does not cover them. If a garage is full of tools that are used to maintain your home, they are covered. But if you use them for work each day, or they are stolen out of your vehicle because you transport them back and forth each day, they are not covered. Page 5
Community Giving
Mercy School for Special Learning Project
Our Project
Mercy School needed some assistance in updating its outdoor space. HMK removed the older wooden fence around the vegetable garden and replaced it with a vinyl fence, refinished the wooden playground train, and weather-proofed the benches in the playground area. The HMK team also held fundraisers in our office with the company matching all funds raised to make sure Mercy School did not have to take on any of the costs. The entire project was a fulfilling experience for all of us at HMK. One of the most touching experiences was being invited to lunch each day by the staff and students at Mercy School and sharing meals and laughter with them.
Each Spring, HMK Insurance, an Alera Group Company participates in the Volunteer Center of the Lehigh Valley’s Volunteer Challenge Project. In 2022, HMK had the honor of partnering with Mercy School for Special Learning. Mercy School provides children and young adults with special needs the best opportunity to reach their utmost potential by providing academic, art, and life skill services and support.
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When we found out that our 2022 Volunteer Challenge project had been accepted by HMK, I knew right away that it would be a massive success because they have been friends of Mercy School for a long time and truly find value in our mission . Every day for over a week, they worked their tails off. I was shocked at how many employees were involved! The results were absolutely amazing . Mark Napierkowski, Development Director Mercy School For Special Learning “
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HMK Employee Spotlights
Debbie Mertus: Account Executive, Small Commercial Lines
This year Debbie Mertus is celebrating 25 years with HMK Insurance! Her dedication to HMK began with a job search when she was feeling stagnant at another agency. She was contacted by HMK and the agency gave her the best feeling overall, so she gladly accepted the offer. As an Account Executive, Debbie enjoys most interacting with people. Whether it is on the phone or in person, it fulfills Debbie to be able to assist our customers and answer their questions. On the opposite side, the most challenging part of what she does is keeping up with the daily influx of emails, phone calls, and paperwork. Luckily, she loves to be busy because it makes the day just breeze by. Debbie explains that “Feeling a sense of meaning and purpose in what I do and being surrounded by successful and motivated people,” motivates her to do well at her job. Something surprising about Debbie is that she hiked twenty-five miles of the Appalachian Trail. Her bucket list includes visiting all the National Parks in the U.S. and then expanding to those outside the U.S. Debbie defines success as, “Accomplishing goals that you set by striving to do your best every day. This applies in every aspect of your life, not just your profession.”
Stephen Paukovits: Senior Account Manager
Stephen Paukovits came to HMK from the company side of the insurance industry. He had joked about coming to work on the HMK team when the right position opened and this passing joke became a reality! As a Senior Account Manager, Stephen enjoys most meeting new people and establishing new relationships. “I enjoy learning about clients’ businesses and getting to know them on a personal level,” says Stephen. The most challenging part of his role is filling the shoes of agents that have recently retired. He knows they are a tough act to follow! His motivation to prove his dedication to our clients comes from their reliance on his experience and the trust they put in him as their agent. That exchange of trust drives Stephen to do whatever it takes to find them the best coverage possible. A fun fact about Stephen is that he is a Christmas baby. His bucket list includes a trip to Austria and to go skydiving. Stephen defines success as, “Achieving your goals set forth whether work or family related. Also, life has its difficulties, but how we respond during those troubling times is a true measure of success.”
Holly Hutterer: Commercial Insurance Consultant
Holly Hutterer was looking for an insurance agency with a strong reputation that offered more resources when she joined the HMK team. As a Commercial Insurance Consultant, Holly enjoys the opportunity to provide guidance, consultation, and solutions to help her clients. The most challenging part of what she does is the constant change in the insurance industry from cyber liability and employment practices liabil- ity to the rise in habitational costs. Holly’s competitive and driven nature affords her the opportunity and resiliency to be an excellent agent. A fun fact about Holly is that she has a passion for creative baking and providing homemade treats to her family and friends. Her bucket list includes traveling through Italy. Holly defines success as, “Happy and healthy children and providing my clients with the coverage they can trust in.”
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Upcoming Webinars
Fundamentals of Contractors Pollution Insurance Oct. 18 @ 2:00 PM
Q4 Compliance Roundup & 2022 Recap Nov. 17 @ 2:00 PM
A Look Ahead to 2023: Hot Topics & Trends Dec. 15 @ 2:00 PM
Rehumanize Your Workforce Oct. 20 @ 2:00 PM
Most events listed are opportunities to earm HRCI and SHRM credits. Check out our website to learn more!
REGISTER HERE
Interested in joining the HMK Insurance team?
HMK Insurance, An Alera Group Company is always looking for driven and professional individuals to join our collaborative team. Check out our open positions and apply today!
View our open positions here!
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Bethlehem, PA | P: 610.868.8507 | hmk.aleragroup.com
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