The ALS Group Risk Management Articles

Nothing illustrates the importance of managing risk more than a recent case of Bruckmann, Rosser Sherrill & Co., L.P. v. Marsh USA, Inc. In this case plaintiff BRS (a private equity firm) discovered that due to a provision in their D & O policy they would not have full access to the limits of liability they purchased to pay a settlement. This limitation occurred due to the inclusion of what is commonly called a “tie-in” provision, also referred to as an “anti-stacking” provision on Bruckmann’s D & O policy.

MOTHER & SON TEAM ACCUSED OF STEALING $16 MILLION FROM SMALL FIRM Recently two New York City based textile companies fell victim to the embezzlement of $16 million by their trusted bookkeeper of over two decades. As reported in the New York Times article on June 24th, company checks were used to funnel money into a bank account controlled by the employee’s son.

The ALS Group hired to provide insurance and risk management consulting for the new $275 million state of the art facility The ALS Group announces its selection as the project risk management consultant for the Miami Science Museum. Expected to be completed by 2014, the $275 million museum will break ground later this year. The ALS Group will work directly with the Museum Executives throughout the construction process to identify and manage the material project risks and craft appropriate insurance and risk management solutions. “Our goal is to prevent any unexpected and unnecessary financial impact to the Museum. A great deal of planning went into this project and every dollar

Having reviewed various contracts for the NYACP Promotion Fund, we wanted to highlight a contracting practice that has become somewhat commonplace. Prime Contractors (GC/CM) are using language in their subcontracts that “incorporate by reference” the terms they have agreed to with the Owner in their contract (the “Prime” contract). The problem is that, in most cases, these Prime contracts are not available for review and the subcontractor overlooks implications that may arise from this reference and just blindly signs off on the contract. The following is language from a specific clause that we reviewed and commented on: