Hacks, Ransomware and Breaches – Oh My!

Even though I’m a techie neophyte, I began writing this article by jotting down a few general ideas and, in no time flat, I had a list nearly a page long. The subject of risk management and computer security, breaches and hackings is that extensive.

So, let’s start with the basics. Cyber threats (“exposures,” in risk management lingo), are internal and external, intentional and unintentional.

Selecting a Nearly-Infallible Machine: Insurance Company Ratings

Imagine needing a machine to work 365 days per year, 24/7.

Imagine the machine must fulfill a specific purpose for no less than three years, and may be called upon to perform certain tasks, which cannot be duplicated by any similar or replacement machine, for 20 years after the initial three. Machine breakdowns are unacceptable and such failures have grave financial and reputational implications for you on a professional and personal level.

Good Risk Management Can Cut Insurance Costs

“Rumors were circulating at Carol’s wholesale business that the sales manager, Tom, was interested in “getting involved” with Christa, the firm’s new salesperson. Christa, on the other hand, had turned down many of Tom’s offers, but Tom’s ego would not let him relent. Carol is concerned Christa will leave, and worse yet, initiate legal action against the business. The company is already working on a thin profit margin, and Carol knows she cannot afford the legal expenses from this or any other sexual harassment claim. What should she do?”

The Impact of an Employee’s Dishonesty: When 1 + 1 Does Not = 2

Store 13* had increased its sales each month since opening a year and a half ago. Some increases were as much as 23 percent over previous months. Now, all of a sudden, sales were flat and in some cases, lower than before. Home office personnel inquired with the manager, “Have any new convenience stores opened […]

Fiduciary Liability = Your Personal Assets at Risk

The phrase “fiduciary liability” is probably familiar to you in the context of corporate directors and officers, and their fiduciary responsibilities to a company. However, there is another type of fiduciary liability which many suggest is equally, if not more, important.

Who is a Fiduciary?

The Employee Retirement Income Security Act of 1974 (ERISA) classifies individuals providing, involved and/or charged with developing, administering and overseeing a company’s benefit or welfare employee benefit plans as fiduciaries. These include plan administrators, trustees, company officers and directors, and human resource personnel. In academic terms, a fiduciary is “any person/organization who has discretionary authority over the administration or management of a plan or its assets.” This includes exercising authority.

Temps, Leased Employees and Borrowed Employees:
What’s the Difference and Why Should I Care?

Have you used or do you use temporary help (“temps”), leased employees or borrow employees? Here are a few workers’ compensation insurance and risk management-related items to keep in mind.

Companies’ workforces may consist of people who are direct employees, temps, leased employees or borrowed help. What’s the difference? For the purposes of this article:

Cyber Risk & Insurance

This article examines the issue of cyber risk and exposures to loss, including recent legal and legislative developments. It reviews and discusses the options for cyber insurance coverage and the coverage limitations of such policies and endorsements. The article also explains the first and third party exposures to loss that cyber insurance covers as well as other benefits of cyber insurance. To highlight the impact of cyber breaches and the benefits of cyber insurance, this article examines recent cyber breaches, including the cyber breaches at Target and Home Depot. The purpose of this article is to provide guidance to legal practitioners and other professional advisors regarding potential cyber risk exposures.

Renewing Your Property & Casualty Insurance: The Scales Have Tipped

In late 2001 through 2003, property and casualty insurance premiums were increasing and businesses tried to mitigate the potential adverse impact of these higher rates. Back then, the insurance market was “hard” or a seller’s market. Fast forward to 2007; the scales have now tipped back to a “soft” insurance market, a.k.a., a buyer’s market. Happy days are here again, right? Well, before jumping to conclusions, take a few minutes and consider what these lower prices might really mean.