Archive for the ‘Risk Management’ Category
You are currently browsing the archives for the Risk Management category.
18
May
2011
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
12
May
2011
Help! Filing a Business Claim
You have purchased your insurance for your business and everything is in order. You’re confident that you and your business have the right protection. But what happens when you actually have to file a claim? Do you know what to do? Well we are here to help!
photo credit: James Cridland
Steps to Filing a Business Insurance Claim:
- 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
If you are unsure of making your business claim call your insurance broker to clarify. Plus, we would be happy to review your policies. Contact us today! Call us at 877-500-6997
3
May
2011
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.
4
Apr
2011
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.
30
Mar
2011
Risks in Technology to Watch Out For
Technology and innovation go hand in hand. It is no surprise this means changes in risk. It is important to stay informed of potential risks that each year could bring. According to Insurance Journal, here are 3 risks to watch out for in internet technology:
- Mobile fever. As smartphones continue to increase market share in the mobile market, there’s more access to internet. This access increases the risk of security threats. So beware of what you are sharing. There is errors and omission insurance that can help protect you as well as social networking coverage.
- Cookies, even more persistent. Cookies collect personal information and new technologies may make it harder to detect and get rid of them. Federal Trade Commission now holds websites hosting them responsible. Make sure you are aware if your website is hosting them.
- 3. Go to the cloud. The cloud is predicted to grow more this year. Outsourcing IT functions doesn’t mean less risk but more managing the third-party. If there’s a breach, you could still be held liable. Make sure you have the right coverage. Not sure? Call us at 877-500-6997 for a review.
See a risk in technology emerging that we missed? Tell us here!
9
Mar
2011
Harsh Weather Could Cause Damage to your business – Do You Have Business Interruption Insurance?
We have seen the reports of the harsh winter weather hitting different places around the world. There has been snow, floods and high speed winds – just to name a few. What happens when this harsh weather or some sort of disaster interrupts your ability to do business and temporarily closes your location? You need business interruption insurance.
What is business interruption insurance?
Business interruption insurance is not sold separately but can be added into your property insurance policy. It will help protect you from losing out to competitors if your business must be closed down temporarily due to a covered physical disaster or damage. It covers the following:
- Compensation for lost profits you would have earned, if your business was able to continue as usual based on past financial records
- Compensation for operating expenses
The price of the coverage depends on the type of business and risk. It can take around 48 hours for business interruption policy to start. Make sure you talk to your insurance broker to get the right amount of coverage for you.
2
Mar
2011
What is Office Package Policy? Here’s a Few Basics to Know
photo credit: garryknight
Everyone loves convenience. It saves time, effort and can even save money. That is what the office package policy is in a word – convenient. It combines several coverages under one policy. Office package usually includes:
- General Liability
- Property
- Auto
Office package policy can also be tailored for your specific industry and your business. These coverages can include:
- Non-Owned Auto Coverage
- Umbrella Liability
It is important to know that this policy usually does not include Errors & Omission insurance. Paired with E&O, office package policy is a must-have insurance policy to have for your business. You can even apply online. Click here to find out more.
1
Feb
2011
Be Aware: Facebook Posts or Evidence in Lawsuits?
photo credit: anitakhart
Many people are connected to social media every day; it was only a matter of time before the courts would use it too. As reported by Brian Grow on Insurance Journal, “U.S. lawyers are trying to mine the private zones of Facebook and other social-media sites for photos, comments, status updates and other tidbits that might contradict what their opponents are saying in court. And increasingly, judges in civil cases are granting access to online caches that had formerly been considered off-limits.”
Information of the parties is being gleaned from their social media sites. More private photos, comments and other information marked for “friends only” have had greater protection; however, this seems to be changing. More courts are granting access for it to be used. The question is: if you are willing to put more and more information up online, what is your privacy? It seems for litigation it can be overruled.
What could this mean for your business?
If you have a company Facebook page, this could be a concern. A “what if” scenario could go:
An upset customer complains on your page and an employee says something back that makes the consumer more upset. The situation hasn’t been handled in the best way possible. Moreover, if the customer feels personally attacked and decides to take legal action, then Facebook becomes evidence.
You never know how people will react. It’s important to protect your business.
Ways to protect your business:
- Create a Facebook Engagement Policy: Provide policies for your employees to follow
- Obtain Employment Practices Liability Policy
- Obtain Social Media Coverage
12
Jan
2011
Unique Internet Business Insurance
Source: ImageShack
Running a business over the internet is unique in the different aspects of business. This includes the returns as well as the risks. There is a vulnerability in your security as well as your client’s security that comes with internet business. The vast reach causes more exposure to attacks against important database information. As the internet continues to change and grow, the insurance industry has evolved with it. Thus, having coverage helps manage that liability. E-commerce insurance related coverage can be covered in property insurance, and liability insurance.
Property Insurance
According to Insurance Information Institute, internet businesses can include two basic policies within the traditional property insurance. One policy is called Computer Operations Interruption coverage. This covers lost income and extra expenses as a result of computer problems. The other policy is called Electronic Data Loss coverage which includes the cost to replace or fix electronic data that is destroyed or damaged from computer viruses or other harmful codes.
Liability Insurance
Liability insurance is important to protect against the possibility and likelihood of system breach. There is a risk that private information will be stolen or compromised. Thus, an additional liability policy is Electronic Data Liability Endorsement.
It is important to select policies that fit your unique internet business, as there are different levels of insurance. An insurance broker can help you get coverage you need. Remember we are here to help you. Contact us today!
4
Jan
2011
Why you should have Employment Practices Liability Insurance
You know it’s important to protect the intellectual property and physical property of your business with insurance. But it is also equally important to cover your human capital as well. You can’t always control what people say or how they act but you can take the steps to protect your assets. With employment practices liability litigation on the raise in the last few years, it is a crucial to have employment practices liability insurance to help mange your risk. Companies are constantly exposed to this liability starting from the interview process to termination. Employment practices liability insurance (EPLI) provides your business against different kinds of employee lawsuits which includes:
- Discrimination
- Sexual harassment
- Wrongful termination
- Wrongful discipline
- Breach of employment contract
- Negligent evaluation
- Failure to promote
- Denial of career opportunity
- Emotional distress
- Misrepresentation
- Mismanagement of employee benefit plans
Unfortunately, the likelihood of these kinds of claims is rather high. EPLI will cover defense cost. According to Jury Verdict Research, the average cost of a suit in 1998 was $150,000, in 2003 was $173,000 and in 2006 was $200,000. It is important to have other strategies in place such as employee handbook and trainings to manage these risks but when all else fails employment practices liability insurance will help protect you and lower fiscal risks. The cost of EPLI policies vary on the type and size of companies. Contact us today review our policy and answer any questions!
