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!
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!
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.
Are you Black Friday Insured?
The day after Thanksgiving is the busiest shopping day of the year and it is known as Black Friday. Why is it called black? Black in the financial world represents positive and this one day can turn a company’s financial books from the “red” which is the negative to the “black” – the positive. Consumers rush out early in the morning and stand in line to get those limited and low prices items. Tech items and electronics are at the top of most people’s list. According to a survey by Retrevo, 78 percent of respondents are willing to spend more of tech items than last year.
With the mad rush, companies need to be careful and protect themselves in case of any accidents and incidents. According to the Insurance Journal, companies should have agents review and verify insurance policy coverage. Furthermore, some items to look out for are:
- Changes for workers’ compensation
- Product liability in case of product recall or defective
- Theft of money or items
- Director and officers liability
- Property coverage for any damages
For more information about these types of insurance check out the CSI Technology Insurance and make sure you are ready for Black Friday!
Hacker Coverage: Interview with Bryan Costello
As Internet crimes continue to increase, we ask you do you have “hacker coverage?” This is more formally known as Breach of Security coverage. Mark Evans from Vator News sits down with our CEO Bryan Costello to discuss it.
Be a star! An Energy Star!
Over the past few years, companies have built energy efficient products and have come up with energy saving programs. However, the task of getting consumers to use it is still an issue. According to the CEO of Ecobee, Stuart Lombard, his company’s energy efficient smart thermostats are being purchased but not being used, “only about 22 percent of smart thermostat owners bother to program their thermostats.”[1] The problem comes from consumers not knowing how to use products or thinking it will be hard to set up. They are simply not taking the time.
There is a general misconception about how to save on energy. Although, turning off lights, changing thermostat settings and unplugging appliances can help save energy it does not save as much as purchasing energy efficient light bulbs, thermostats and Energy Star appliances. The graph below available on a TechCrunch article by Matylda Czarnecka shows survey results of perceived energy savings versus the actual savings:[2]
What should a business do to inform customers of how to saving energy? Iris Kuo, VentureBeat’s lead GreenBeat writer, provides some tips to get people to use energy saving products. Here are those key bullet points:
- Don’t overload users with data. Ease into it.
- Consider making it like a gaming experience.
- Convenience and comfort are key. Keep it Simple!
- Recognizable icons are important.
- Untangle the set-up process.
- Use mobile apps.
- Relate new technologies using analogies.
- Show the dollar amount saving to the user.
- Set it up and forget it.
Be Being energy efficient is vital for now and the future. At CSI being green as been an important part our company. We challenge you to be a star – an energy star!
[1] Kuo, I (2010, Nov. 2). Build it and they’ll unplug? How to get people to use energy-saving products. Green Beat. http://venturebeat.com/2010/11/02/how-to-get-people-to-actually-use-energy-saving-products/
[2]Czarnecka, M. (2010, Aug. 18). Study Shows People Are Clueless About Energy Savings – Here’s What Actually Works. GreenTech http://techcrunch.com/2010/08/18/study-shows-people-are-clueless-about-energy-savings-heres-what-actually-works/
Clean Technology, Silicon Valley and the Government, Oh My!
Silicon Valley is opening up to the idea of government involvement when it comes to funding for CleanTech. Normally, there is resistance to government intervention in Silicon Valley. Private investing and less regulation are highly favored. According to lobbyist, Maury Litwack, Silicon Valley is an “independently-minded group which thrives on willing funders and growing consumer interest” (2010). They are self-efficient and like it that way. However, there is a funding issue when it comes to clean technology opportunities.
CleanTech is a new way of doing business. It can be implemented in all kinds and sizes of businesses. According to CleanTech Group website, CleanTech intends to “provide superior performance at lower costs, while greatly reducing or eliminating negative ecological impact, at the same time as improving the productive and responsible use of natural resources” (2010). It is in eleven segment areas for improvement: energy generation, energy storage, energy infrastructure, energy efficiency, transportation, water and waste, air and environment, materials, manufacturing, agriculture, and recycling and waste. It is a way of rethinking and conserving; from recycling to types of windows and lights to use in the office. To move forward in this direction, investments are needed. CleanTech is changing how Silicon Valley needs to engage with the government. In a survey by DLA Piper’s, 84% of tech leaders are in favor of government tax incentives and government support in this area. It requires a huge amount of funds and public policy. Private venture capital and government will need to play a role. It seems in order for CleanTech to be integrated into the Silicon Valley, companies are going to have to allow the government to help.
To read more on this visit techcruch.com under “GreenTech.”
Link: http://techcrunch.com/2010/10/16/crashing-washington-how-cleantechsilicon-valley-can-have-their-cake-and-eat-it-too/
References:
Litwack, M. (2010, Oct. 16). Crashing Washington: How CleanTech/Silicon Valley Can Have Their Cake And Eat It Too. TechCrunch. Retrieved Oct. 26, 2010 from http://techcrunch.com/2010/10/16/crashing-washington-how-cleantechsilicon-valley-can-have-their-cake-and-eat-it-too/
Lacy, S. (2010, Oct. 12). HEY GOVERNMENT! GET OUT OF SILICON VALLEY! (Unless You’re Got CleanTech Subsidies of Course). TechCrunch. Retrieved Oct. 26, 2010 from http://techcrunch.com/2010/10/12/hey-government-get-out-of-silicon-valley-unless-youve-got-cleantech-subsidies-of-course/
CleanTech Group. (2010). CleanTech definition. Retrieved Oct. 27, 2010 from http://cleantech.com/about/cleantechdefinition.cfm
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?”
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.
