Contracts TCoR and ERM – How They Go Together

In the last chapter of our series, we introduced the concept of using a risk register and a materiality table to qualify and quantify risk exposures. Building on that foundation, this chapter focuses on how these tools can influence the Risk & Contract Review process. While, it may seem unconventional, to take a formal risk-based approach to contract reviews, doing so adds tremendous value by systematically identifying and addressing potential risks before contract execution. Before the advent of modern technology, organizations often relied on a “buck slip” process for document circulation and approval. A document would move from one manager to the next, gathering signatures as each reviewed and approved

The ALS Group September 24, 2024

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Notice of a Claim

Timeliness of notification is one of the most frequently litigated coverage issues within the claims process. It is often due to people not recognizing an event or occurrence as being a claim per the policy or unintentional delays in reporting. Delayed reporting can cause policyholders to run into significant issues, such as coverage concerns and evidence spoilage, which may lead to complete claim denial. This is illustrated in a recent New York court ruling, which held that a demand letter received met the definition of a claim per the policy. In this case, John Mellesmoen, an employee of Match Group, sent a letter demanding a settlement for compensation and damages

The ALS Group September 10, 2024

A person in a suit holding a pen over a blank piece of paper at a desk, with a glass of water and a laptop nearby.

Contracts and Additional Insureds – Do You Really Have Protection?

The Pitfalls of Generic Insurance Language: A Case Study on Additional Insured Protection Recently, an intriguing and concerning case highlighted a significant issue with generic insurance obligation language in contracts. In the dispute between Seven Up Realty and AJ Greenwich Contracting, the lack of specific language in the contract left Seven Up Realty without the crucial Additional Insured protection they expected from their contractor. This example underscores the importance of detailed insurance requirements in contracts and the risks associated with relying solely on Certificates of Insurance. The Case: Seven Up Realty vs. AJ Greenwich Contracting In the case at hand, Seven Up Realty had engaged AJ Greenwich Contracting for certain

The ALS Group July 9, 2024

A person holding a magnifying glass over a stack of documents.

COI Compliance: Do You Sleep at Night?

There are industries that entail managing insurance compliance among large numbers of vendors/contractors, which challenges even the most organized firm to manage the compliance properly. If done right, it’s a process which requires diligence and specialized knowledge: Each of these contractor relationships then generates a number of coverages, terms and back-and-forth communications. For these types of firms, the volume of data, communications and risks dictate a need for a robust and efficient compliance effort. Traditional insurance compliance for vendors, subcontractors and commercial tenants focuses on simply obtaining certificates of insurance (COIs) and calling that “protection”. Ostensibly, these COIs are proof of insurance; however, these are not by themselves good proof

The ALS Group July 24, 2017

Client Success Story: Real Estate Investor/Lender – Insurance Compliance

Situation A NY-based organization (acting as tax syndicator) with over 350 properties engaged us to review and modify the lender requirements and to ensure insurance compliance with the requirements from the various parties involved in a deal

The ALS Group July 12, 2017

One person hands an insurance contract highlighting the importance of risk management.

Certificate of Insurance Compliance: Eliminating the Blind Spots

Errors and even outright fraud in certificates of insurance is a growing problem. We encounter a 70% noncompliance rate on initial documents. The certificate of insurance compliance function protects a company by ensuring that its contractors have appropriate types and amounts of insurance coverage. The burden of this compliance process is often underestimated.

The ALS Group March 16, 2017

Safety is good business!

With all the rules and regulations with which a business needs to comply, an often overlooked area is workplace safety compliance and, specifically, the implications of the Occupational Safety & Health Administration or OSHA. On top of avoiding workers compensation and worker-related frictional costs (production loss/worker distraction, training costs/replacement worker, loss of skill/efficiency – slowed production, administrative time, etc.) compliance can help avoid the penalties that OSHA can impose.

The ALS Group November 10, 2015

A Contract Compliance Framework Can Reduce Risk

Monitoring insurance compliance in contracts is an important, albeit challenging, risk mitigation strategy. Read Al Sica’s recent article on the subject posted on Construction Executive Magazine website.

The ALS Group February 12, 2014

Certificates of Insurance | Are You Covered? Maybe?

So you may have received a Certificate of Insurance (COI) from your vendor, and you feel comfortable that its employees now can be allowed on your building’s property. To you this may seem like they have given you a familiar card from Monopoly. With your supposed “get out of jail free” card, you allow vendors access to your building and allow contractors to perform work on your property. However, you may not be as “free” as you think.

The ALS Group May 28, 2012

Don’t Let Snow Removal Claims Bury You: Key Risk Transfer Tips

As winter approaches, it’s time to ensure that your snow removal contractor agreements are set and, more importantly, that your risk transfer strategy is airtight. Liability claims resulting from the “improper removal of snow and ice” are not only frequent but can also be incredibly costly. Many of these claims stem from elderly individuals sustaining severe injuries from slips and falls, often resulting in long-term or permanent consequences. In other words, BIG CLAIMS. Whether you own a manufacturing facility, manage a building, or oversee a property with parking lots, sidewalks, or pedestrian areas that require snow and ice removal, there are some key things to keep in mind to avoid

The ALS Group December 2, 2010

Our areas of expertise include:

Enterprise Risk Management (ERM)
Cyber Security & Cyber Liability Insurance
Construction Management
Customized Risk Management Assessments (RMAs)

The ALS Group Risk Management Articles

Contracts TCoR and ERM – How They Go Together

Notice of a Claim

Contracts and Additional Insureds – Do You Really Have Protection?

COI Compliance: Do You Sleep at Night?

Client Success Story: Real Estate Investor/Lender – Insurance Compliance

Certificate of Insurance Compliance: Eliminating the Blind Spots

Safety is good business!

A Contract Compliance Framework Can Reduce Risk

Certificates of Insurance | Are You Covered? Maybe?

Don’t Let Snow Removal Claims Bury You: Key Risk Transfer Tips

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Contracts TCoR and ERM – How They Go Together

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