Most Medical Malpractise claims NEVER go to trial!

A study shows that while most medical malpractice claims lead to litigation, most of these are dismissed, and only a small fraction are resolved in the plaintiff’s favor. Three quarters of the relatively small number of suits that go to trial are in fact decided in the physicians favor.

Cloud Computing and Cyber Risk.....Why companies who use Clouds STILL need Data Privacy coverage!

Many companies believe that by utilizing a Cloud provider they do not need Cyber Liability aka Data Privacy Coverage. The common belief is that the Cloud itself assumes any and all liabilities and would respond to any claims of hacking, reputation rehabilitation, data theft and copyright infringement relating to the first party.

The questions Cloud providers 'customer's should ask are in short "How bad would it be for an organization if information about it gets out (employee or customer information?"; "How bad would it be if an employee of a cloud leaked information?"; "How bad would it be if the customer could not access information the Cloud is responsible for?"

Cloud customers should never assume that they are covered first dollar if a claim is filed. Typical Cloud-Customer contracts include provisions that the Cloud's Cyber Liability policy (if they even have one) will be excess to any underlying policies.

Regardless, of this, disclosure that a Cloud is indeed handling the cyber responsibilities of a company can reduce the cost of coverage for the primary policy holder.

Company's should also be requesting that they be named as Additional Insureds on the providers Cyber Liability policy and requesting evidence of this and that the provider does indeed have coverage in place.

Insurance Buyers struggling with coverage gaps and service shortfalls!

Though conditions in the commercial casualty insurance market remain generally favorable, buyers still struggle with significant coverage gaps and service shortfalls in addressing their companies' exposures, stated a panel of risk managers at Advisen Ltd.'s Casualty Insights Conference in New York.

Global regulatory shifts, advancing technology, hybrid business models and a growing cultural proclivity for litigation are among the more distressing trends driving claims activity in the casualty space, panelists said. And in many cases, panelists said, risk managers are in dire need of new insurance solutions and services to minimize the impact of those exposures. One glaring deficiency, they noted, is the lack of insurance products tailored for the increasing number of firms that have begun blending production and service business models in response to changes in global supply chain structures.

“As more American companies move into service-oriented business models and away from manufacturing, I'm not sure insurers are keeping up with that,” said Maria Diaz, director of global risk management at Norwalk, Conn.-based Xerox Corp. “In other words, they're very good at addressing the risks of a manufacturing company, and they're very good at working with a financial institution or other type of service firm. But if you're a company that does both, it's really a challenge to design an insurance program that is creative enough to meet those needs.”
Matt Dunning (Business Insurance)