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Horizontal Limits Exhaustion – Risk Transfer Challenges

Longshoremen’s and Harbor Workers Compensation Act Coverage Endorsement

Maritime Coverage Endorsement

Internet Abusers Create Liability for Companies

Contractors v. Employees – The escalating challenges faced by Companies

Clarity is Missing Link in Supply Chain

Layoffs May Spark Defamation Suits

Managing the Risks of Long-Term Contracts

Drywall Disputes Trigger Lawsuit

D&O Checklist

Age Bias Claims Rise


Horizontal Limits Exhaustion – Risk Transfer Challenges

One of the most vexing areas today is for an “upstream” party to structure an effective means to transfer risk to “downstream” parties. Courts have been applying a limits allocation theory that complicates this process referred to “Horizontal Exhaustion”. Simply, “horizontal exhaustion” means that all parties (including the “upstream” party) must exhaust all primary limits of coverage before an excess (Umbrella) limit comes into play. This is a challenging issue but with proper agreement language and corresponding policy language the intent of the parties will have a greater chance of being realized. The following link is a good article on the subject written by Saxe, Doernberger & Vita that better describes the issue.

Click here to read the full article.


Longshoremen’s and Harbor Workers Compensation Act Coverage Endorsement

Longshore and Harbor Workers’ Compensation Act (LHWCA)-Provides no-fault workers compensation benefits to employees other than masters or crew members of a vessel injured in maritime employment-generally, in loading, unloading, repairing, or building a vessel. Employers can obtain coverage by purchasing a longshoremen’s and harbor workers compensation act coverage endorsement (WC 00 01 06A) to a standard workers compensation policy.

Click here to read the full article.


Maritime Coverage Endorsement

General Maritime Law-The common law of the sea holds that vessel owners owe “transportation, wages, maintenance, and cure” to masters or members of a crew of a vessel in the event of injury or illness during the voyage, regardless of whether the injury or illness is work-related. Also, seamen can sue the vessel owner for damages resulting from the unseaworthiness of the ship. Employers can obtain coverage by purchasing a maritime coverage endorsement (WC 00 02 01 A) to a standard workers compensation policy.

Click here to read the full article.


Internet Abusers Create Liability for Companies

The attached article that recently appeared in Business Insurance highlights the increased liability for businesses that have poor supervision of employee usage of the internet. The article discusses how companies who fail to react to this issue face a possible increase in risk and subsequently an increase in their Total Cost of Risk.

Click here to read the full article.


Contractors v. Employees – The escalating challenges faced by Companies

The WSJ published an article earlier this week that details the challenges and potential financial complications that arise from using contractors that could be considered “employees”. Our views center on the insurance risk & non-insurance risk implications of this scrutiny and how a Company’s need to evaluate what their internal exposure is along with insurance related mitigation strategies. Interesting enough in August 1989 the NY times published a similar article (click here).

Talking steps implementing an effective contractor insurance program will lower the Company’s Total Cost of Risk (TCoR) and demonstrate to their insurers and stakeholders that thoughtful risk management standards are being contemplated and implemented. From helping design the “contractor agreement” standards to effective review and monitoring of the certificates of insurance, the ALS Group can help guide toward an effective strategy.


Clarity is Missing Link in Supply Chain

The supply chain poses risk to businesses in many ways. This article explores how the current economic climate has wreaked havoc on companies’ ability to manage and forecast inventory levels and how it has impacted companies. An additional supply chain risk is where a major suppliers suffers a loss (i.e. fire) causing a disruption in your business since you rely on that supplier for a major component or part. This risk can be transferred via insurance by adding contingent business interruption contracts to your property policy. We are available to discuss this often overlooked coverage with your firm.

Click here to read the article by Phred Dvorak – “Wall Street Journal”, May 18th 2009


Layoffs May Spark Defamation Suits

As unemployment and the economy is on everyone’s mind, optimistic changes seem to be headed our way. In the meantime, businesses must stay alert to the risks their exposed to with employee related liability issues.

Layoffs May Spake Defamation Suits by Judy Greenwald – “Business Insurance”, May 31st 2009


Managing the Risks of Long-Term Contracts

In most long-term contracts of any type, it is extremely hard to predict what could/will occur over a span of many years. In this article, Michael touches upon subcontractor or supplier default and price escalation that will most likely occur along the way as well as unforseen events.

Managing the Risks of Long-Term Contracts by Michael Culnen – “Construction Executive”, June 2009


Drywall Disputes Trigger Lawsuit

This article goes into detail about the tainted drywall that has been imported from China. More than a dozen states have reported this problem and the builders may face lawsuits. This article reminds us how important having a good risk management approach is.

Drywall Disputes Trigger Lawsuit by Jeff Casale – “Business Insurance”, May 2009


D&O Checklist

As the market tightens have you diversified the number of D&O insurers enough to reduce the risk of insolvency?

D&O Checklist by Russ Banham – Treasury & Risk, April 2009


Age Bias Claims Rise

Claims arising from employment are often the most volatile and difficult to defend. There is often very subjective criteria for an employee’s dismissal, in many cases poor recordkeeping and lately, more sympathetic judges and juries to decide awards. This adds up to a significant financial risk for a Company.

The May 2009 issue of Treasury and Risk Management magazine article on the subject captured many sobering facts and it is clear that risk mitigation is critical.

Age Bias Claims Rise by Russ Banham – Treasury & Risk 2009


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