Archive for the ‘Risk Management’ Category
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30
Dec
2010
New Year’s Revolutions for a Tech Company
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As 2011 fast approaches, a new year can mark the beginning for a new start. Now I have blogged about the risks of social media and increasing threats. Nevertheless, with these risks, we know the opportunities in the technology world are endless. According to Adrian Kingsley-Hughes, internationally published technology author, here are 5 tips to start the New Year off right:
- Keep your software updated! – This will help lower risk from hackers.
- Back up your data! – This is easy to do with an external hard drive or cloud storage.
- Change your important passwords! – Doing this a few times a year can also lower security risks.
- Clean the cobwebs out of your system, literally! – Dust and cobwebs can cause over heating.
- Encrypt important data! – Your data is valuable, so if you lose it you’re still protected.
We hope 2011 is a great year for you and your company! What is your New Year’s Revolution to make this year great? Also, if you any questions about your insurance policy, we’d be happy to go over it with you. Contact us!
1
Dec
2010
Top Mistakes of a Tech Company
With the current verdict of the lawsuit between SAP and Oracle, this will affect how technology companies approach copyright issues and acquisitions. It was an acquisition of TommorrowNow that started the mess for SAP, which lead to a conviction by Oracle of stealing intellectual property. According to the Associated Press, “The $1.3 billion that the jury awarded Oracle is more than half of SAP’s total profit from last year.” However, this should not hurt them financially in the long term but it may as far as brand name.
This case will most definitely impact other technology copyright cases. It also calls attention to intelligential property and the importance of its protection . This falls in the list of top 10 mistakes of technology companies. Here are the bullet points of Daniel Pepper’s, founder of Pepper Law Group, article, The Top 10 Mistakes Technology Companies Make:
10. Failure to register a federal copyright for company-developed software
9. Licensing technology too broadly
8. Failure to provide detailed support and maintenance policies
7. Not contracting customers to recurring support fees
6. Inadequate non-disclosure and non-compete agreements with employees and contractors
5. Giving away intellectual property ownership too liberally
4. Using overly broad or subjective acceptance testing
3. Offering liberal source code escrow release conditions
2. Undervaluing technology
1. Using a form license and/or services agreement that doesn’t fit your business model
Intellectual property is a serious matter and vital to a technology business. You should protect your IP. Errors and omission insurance can cover intellectual property. Don’t fall into these common mistakes.
28
Jun
2010
Should you add Additional Insureds?
The entry below is featured in this month’s TechAssure Newsletter.
Contributed by Noel Bertman
Chubb Group of Insurance Companies
Risk managers, CFOs and CEOs are routinely asked by their clients to obtain additional insured status under their liability policies. Too often, this request is agreed to and passed through to the insurance company without thought of the consequences to your company.
Some points to consider before you act on the next request:
- Limits of Insurance
Have all considerations been undertaken to ensure that you are not giving away the coverage you’ve purchased for your own defense? Many insurance policies will defend and indemnify your client if you agreed to do so in a written contract. The money spent on defending your client could potentially be reducing your liability limits (in policies where defense expenses reduce the limits). By accepting only the liability for exposure within your control, you can retain the most value from the coverage for yourself. An example might be limiting status to financial interest only.
- Reporting
Some policies have provisions that all insureds (includes additional insureds) have the duty to report claims in a timely manner to the insurance carrier. For example, can the additional insured prejudice my coverage by untimely reporting? - Separation of Insured Provision
If your policy contains this coverage, you may be allowing the additional insured (your client) to use your own policy to bring suit against you. - Blanket Additional Insured Wording
Most contracts require you to indemnify and hold your client harmless. Many blanket additional insured provisions are very generic, and can apply to many different situations.
Therefore, you need to make sure that the additional insured provision is tailored to comply with your contract. It is always best to review the additional insured provision and ask yourself, “Are there limitations in the policy regarding retention of defense counsel and control of a suit that require certain pre-loss agreement that is not in the contract?”
10
Jun
2010
Data Breach Insurance and Prevention
Security of private and or sensitive data is an increasing issue for most of our clients. With differing statutory laws and regulations, it’s important to consider your prevention methods and how your insurance program can help. This video offered by Insurance Journal features David Garrett, managing director of Stroz Friedberg’s San Francisco office, discussing risks of a data breach and how your insurance program could provide coverage.
5
Apr
2010
Earthquake Preparedness
It seems of late that places all over the world are moving and shaking and yesterday’s 7.2 earthquake in Mexico was a little too close to our own backyards for comfort. Being in one of the most active areas of the country for earthquakes, we wanted to take a moment to address this important subject.
While homeowners insurers are required to offer earthquake insurance every couple years, commercial insurers have no such duty. Commercial earthquake insurance is costly in California and the Pacific Northwest and, for many of our clients, the deductible you would have on a policy would be as high if not higher than the value of your property.
While we are happy to provide quotes for earthquake insurance if you should wish to analyze the coverage in relation to the costs, you should look first and foremost toward risk mitigation to avoid the potential for serious losses following an earthquake. There are companies in California that sell EQ safety products, such as fasteners for securing large pieces of furniture and equipment. One such company is Q-Safety products in Southern California. The vast array of products for office and home are intended to protect your property from damage, as well as your staff from injury due to falling objects.
We encourage all our clients and blog readers to embrace a pro-active, risk mitigation plan and do whatever is possible to prevent loss that at this point is not insured. For most companies, the costs involved to secure your property via products available are most certainly going to be less than purchasing an insurance policy.
The protection of your assets and safety of your employees is important to us. If you have any questions or wish to discuss earthquake disaster planning in greater detail, please contact us. We are here to serve you.
