Hardening Management Liability Marketplace
photo credit: wrestlingentropy
In the past 12 months, several management liability insurance carriers have changed their underwriting guidelines for privately held California insureds.
Some of the changes include:
- Increased rates
- Increase retentions
- Reductions in coverage
- Reductions in total limits offered
- Reductions or removal of wage and hour defense cost sub limits
- Non-renewal of certain insureds based on industry
In recent years, there has been a surplus of capacity from Management Liability Insurance carriers to write accounts at attractive rates and terms. The marketplace appears to be reaching a point where this capacity will no longer be utilized to offer terms we have been accustomed to seeing.
Why is this happening?
- Poor economic conditions
- EPL claims expenses rising
- Wage and Hour claims being far more prevalent than anticipated
- Increase in D&O claims
What should I expect?
- Increases in retentions and premiums
- Defense costs for wage and hour claims will be harder to get
- Non-renewals by some carriers based on class of business
The bottom-line is that the California MLI marketplace is changing and there are many advantages in being prepared. Please call 415-257-2100 or click here to visit our website.
Source:
Leftcourt, Paul. Hardening Management Liability Marketplace for California Clients. San Francisco: Socius, Mar. 2011. PDF.
What is Errors and Omissions Insurance and why does it apply to you?
Many people know absolutely nothing about Errors and Omissions Insurance. Some have a general idea, but choose to believe that it does not apply to their personal situation. This is not a good thing. In reality, this type of insurance applies to almost every profession. Errors and Omissions Insurance covers mistakes (errors and omissions) that cause financial harm to another person. It helps an individual or company from bearing the full cost of defense for lawsuits and related cost of “lives or property lost” concerning the error or omission. If you have any effect on the financial standing of the people you work with, you should consider looking at your options for coverage.
How does it apply to technology companies?
Errors and omissions insurance coverage is the cornerstone of a technology company’s insurance program. In addition to coverage for professional services, this policy can cover network security, personal injury, privacy liability, intellectual property, copyright, and trademark.
As you can see, this type of insurance covers a wide variety of liabilities. Come visit our website to find a policy that fits your needs!
Sony’s Biggest Loss in 16 Years
photo credit: Michele | Mic. Agius Photography
One of the biggest technology manufacturers in today’s market, Sony, is expected to report a loss of 3.2 billion dollars for this fiscal year. Based out of Japan, the company had nine production plants that were damaged by the tsunami in March 2011. This caused massive disruption to supply chains and domestic consumption. A devastating national disaster like this could not have come at a worse time for a company like Sony. A series of hacker attacks on their online networks, a declining DVD industry, lack of a stronghold in the video gaming industry, and declining TV sales were all pre-tsunami issues that the company was dealing with. Not to mention, this will be the third consecutive year that the company is expected to lose money. It is horrible when something like this occurs, but it is never a bad idea to be prepared.
Here are some ways that you can be prepared for a natural disaster:
- Homeowner’s Insurance Coverage
- Flood Insurance Coverage
- Earthquake Insurance Coverage
One of the most important things you can do is be aware of your surroundings and the potential risks that you may face based on your area. If you have any questions contact us today! Call us at 877-500-6997
How Can I Increase the Number of People that See my Website?
photo credit: barry.pousman
The difference between an internet company’s success and failure is dependent on the number of people who access their website. Trying to figure out how to get more web surfers on your page is a dilemma that companies deal with everyday. One way to promote your website is Search Engine Optimization (SEO). Utilizing an SEO Consulting Agency could be one of the most important things a company does to market themselves on the internet.
Here are some ways that SEO agencies can help businesses with online brand management:
- SEO Consulting helps companies keep up with latest monitoring tools, analytics, and changes to search engine algorithms. These tools give valuable information about what is working and not working.
- They assist brands in improving rakings on search engines and adding to overall public visibility.
- Implementing positive brand strategies to deal with negative search results.
- Help increase brand acceptance, loyalty, and credibility.
When managing a growing brand, businesses should consider different types of technology insurance. Take advantage of our E&O policy, our Office Package, and our Management Liability coverage that we offer on our website.
Top 5 Life Science Insurance Risks
According to a survey conducted by Chubb Group Insurance Companies, there are 5 losses that life science companies experience the most.
- Injuries to 3rd parties with 46%
- Loss due to spoilage or change in temperature with 32%
- Employment practices liability lawsuit with 25%
- Loss of income due to a property loss at key supplier or customer with 22%
- Medical professional injury with 15%
When faced with risks, it is important to mitigate risk by using insurance. There are different insurance policies for life science companies such as:
- Property Insurance
- Liability Insurance
- Errors & Omissions
- Employment Practices Liability (EPL)
- Directors and Officers Liability Insurance (D&O)
- Workers Comp
Insurance should fit your unique business needs, especially as a company involved in the life science industry. You are vulnerable to a number of unique liability exposures. At Costello and Sons, we work with you to get the right coverage. Contact us today to find out more! Call us at 877-500-6997
Help! Filing a Business Claim
photo credit: James Cridland
- Contact the police if necessary
- Contact your insurance broker and company right away
- Read your policy and talk to your broker to ensure you fully understand your responsibilities in making the claim
- Take pictures of property and items damaged
- Secure your property from further damage and make immediate repairs if necessary. Save damage parts for insurance adjuster
- Get at least 2 bids on cost of repairs
- For business interruption claim, present proof of income, records of business activity and expenses
Top 10 Risks Businesses Are Facing and Ways to Mitigate It
The results of Aon’s 2011 Global Risk Management Survey, as reported by the Insurance Journal, shows the top 10 risks that business leaders are facing in this global economy. There were some new top risks when compared to past years. Technology failure/systems ranked in the top 10 for the first time as well as failure to innovate/ meet consumer needs for the first time. This indicates changes need to be made in strategies and businesses need to mitigate these risks.
Here are the top 10:
- Economic slowdown
- Regulatory/legislative changes
- Increasing competition
- Damage to reputation/brand
- Business interruption
- Failure to innovate/meet customer needs
- Failure to attract or retain top talent
- Commodity price risk
- Technology failure/system failure
- Cash flow/liquidity risk
Insurance is one way to help mitigate risk. There are different policies that can help protect you and your business from some of the risks above.
These policies include:
- Business Interruption Insurance
- Errors and Omission Insurance
- Network Security Liability
- Intellectual Property Liability
- Copyright, including Copyright of Software Code
- Cyber Extortion
- Workers Compensation
- Management Liability
- Employment Practices Liability Insurance
- Directors & Officers Liability Insurance
- Crime Insurance
Feel free to contact us to review your policy or learn more about how these policies can benefit you and your business.
Attention Business Owners, Are You Prepared For The Future?
photo credit: {Guerrilla Futures | Jason Tester}
No one can predict the future and with one-third of 2011 over, there has been a lot of change and surprises. An article on Business Insider, suggests you consider these 5 questions to prepare your business for the future:
- What disruptive forces threaten our business?
- Are we building our business for tomorrow?
- Are we attracting the best workforces and doing what we need to retain it?
- Why are potential customers holding out?
- What’s the dead weight we need to eliminate?
Different businesses and industries are faced with different variable elements pertaining to these questions. So why not have insurance that fits your business needs?
You can manage liability and financial risk for disruptive forces with different policies such as employment practices liability, directors and officers liability insurance, business interruption insurance, workers’ comp and errors and omissions insurance. These policies also help with risk in dealing with workforce and customers. It is important to be prepared in changing markets and environments in order to remain competitive. The future holds so much potential, are you ready to grab it?
Privacy Bill of Rights: Why Not Use Social Media for Disclosure
photo credit: schoolphotos2
In order to give consumers more control of their personal information that’s out on the internet, Senators John McCain and John Kerry recently introduced The Commercial Privacy Bill of Rights Act of 2011. According to Insurance and Technology, under the “Privacy Bill of Rights” businesses will have to disclose when their tracking activity and shared data to third parties to the consumer. It would give consumers the option to opt in or out. However, instead of waiting for this Act, make changes now and why not use social media to engage consumers?
Ways to use Social Media
- The Facebook “Like” Button allows consumers to actively be involved in telling your business what they like. Use it on your page, website, blog, Youtube, and product
- Facebook comments
- Blog comments allows for easy feedback
- Tweets and Retweets
- Google Analytics to track engagement
Be creative in how you market using the internet and social media! But let your consumers know what you’re up to. It’s better to be transparent and get their feedback and support!
Is your business dependent on suppliers?
The natural disaster in Japan has been devastating. It reminds us how quickly life can change. Even though U.S. businesses are not being physically impacted by the damage, there is still loss due to reliance on suppliers. It affects the global world.
It is impossible to be ready for everything; some things are uncontrollable but you can try to minimize risk. Loretta Worters, vice president of I.I.I makes this point,
“U.S. manufacturing plants could grind to a halt if essential supplies are not delivered on time, which could be devastating for American businesses. But insurance may be available to prevent financial catastrophe. Businesses need to talk with their commercial insurance agent or broker about the coverages that are right for them.”
Contingent Business Interruption (CBI) Insurance & Contingent Extra Expense Coverage
These coverages are ways to help manage risk and financial loss. These coverages can include:
- CBI covers loss that occurs far away from actual physical business properties
- Reimbursement of lost profits and extra expenses due to business interruption from supplier
You can usually cover a selection of suppliers or purchase blanket coverage for all. However, it is important to note that it excludes floods and earthquakes. Those must be added separately to the policy.
Interested in learning more? Contact us today at 877-500-6997.
