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)

What am I paying my Insurance Broker to do - 5 Key Questions to Consider!

Are you paying your insurance broker to merely place your insurance coverage with a carrier that provides the most contingent commission? Does he partner with you to dictate the price to the marketplace?

When conducting a program review – does your broker recommend coverage’s or endorsements to address ALL of your exposures? Does he truly understand the coverage’s you really need?

With the recent soft market and depressed premium pricing - is your insurance broker giving you all the services you need?  Or is he holding back to protect his margins?

Does your broker just want to save you premium to keep you happy for another year? Does he work to decrease your total cost of risk saving potentially missions of dollars to your bottom line - allowing you to Grow, hire and profit?

Does your broker partner with you to ensure you are in compliance contractually and efficient on the supply chain side?

  

Not sure on any of these - then we are at your service.

The World's Leading Broker - Aon.

Regards,

Wage and Hour Litigation……Eureka – The Solution is Here!

Wage and hour lawsuits continue to be a major concern for employers, with the Department of Labor stating that there were 40,000 wage and hour complains during fiscal year 2010 – up 15% from the previous year’s total.

Standard Employment Practices Liability policies do NOT respond or provide coverage for Wage and Hour claims.

Until Now.

Aon Risk Solutions has introduced a manuscript endorsement to its proprietary form to allow for this exposure to be covered.

One less thing for HR and Finance to worry about.

The #1 key (and secret) for CFO’s to take advantage of rising Insurance rates……..

Its common knowledge in the insurance industry that while carriers are seeking significant rate increases for policy RENEWAL’S, in a competitive situation with an outside broker and/or carrier, rate can in fact be driven down below current levels.

It’s the old adage……"I’ll fight for what I don’t have!"

Wage and hour litigation outpacing all other workplace class actions!

According to an industry expert, wage-and-hour litigation is the "No. 1 exposure area in corporate America as far as the plaintiffs class action bar is concerned."

Wage and hour lawsuits have become a major concern for employers, with the Dept. of Labor stating the 40,000 wage-and- hour complaints during fiscal 2010 were up about 15% from the previous year's total.

The complexity of federal and state laws, the relative ease of winning class action certification and workers laid off as a result of the weak economy have led to more litigation in recent years, observers say.

Among reasons for the lawsuits' growth is establishing a class action under the Fair Labor Standards Act is relatively easy under the federal rules of civil procedures, said Paul J. Siegel, a partner with Jackson Lewis L.L.P. in Melville, N.Y.

Many claims fall into two major categories: misclassification of workers as exempt, and unpaid overtime, observers say.

However, employers can minimize the chances of litigation by taking steps that include periodic audits to determine whether employees are being properly classified, as well as careful record-keeping.

When employers are sued, experts say settling the case may be the wiser course.
Employers should keep good records, periodically audit their employee classification and record-keeping, and practice diligent supervisor training to avoid wage-and-hour lawsuits, observers say.
When employees are working off the clock, employers should be aware that federal and state laws may differ when it come to meal or rest breaks and stay up to date on regulations, Mr. Maatman said.
Companies also should have a complaint or grievance procedure for workers who feel they are not being paid appropriately, he said.

Reprinted from Business Insurance.