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

Illustration depicting a hand pointing to the words "Insurance Claim" surrounded by icons of a handshake, globe, and courthouse, capturing the essence of the Tradesman Lawsuit.

The Tradesman Lawsuit: Insurance Claims and Risk Management Awareness

Is Your Business Prepared for Legal Disputes? Last month, the employees of The ALS Group gathered for a crucial session with Maggie Ingels, our Senior Consultant of Claims and Risk Services, to discuss one of the most significant lawsuits currently unfolding in the claims world—the “Tradesman Lawsuit,” which was filed on March 1, 2024. This case is a stark reminder of the complexities and risks businesses face today, particularly in industries like construction, where legal disputes can lead to devastating financial consequences. But it raises an important question: Are you adequately protected against similar risks? The Details: A Closer Look at the Tradesman Lawsuit The lawsuit, initiated by Roosevelt Road

The ALS Group August 14, 2024

letters of the alphabet with the word liability. concept of liability.

Identifying General Liability Insurance Gaps: A CEO’s Guide to Risk Management and Liability Protection

The Rising Tide of General Liability Claims: Identifying Gaps in Your Insurance Portfolio As businesses navigate an increasingly litigious environment, particularly in industries like construction, the rising frequency and severity of General Liability (GL) claims are becoming a significant concern. Understanding the driving forces behind this trend and identifying gaps in your current insurance portfolio is critical to ensuring your business is adequately protected. But where should CEOs and risk managers start, and how can expert advice help? Understanding the Scope of General Liability Insurance General liability insurance is designed to protect businesses from financial loss due to claims of bodily injury, property damage, personal injury, or advertising injury. This

The ALS Group July 23, 2024

Two people review and sign risk management documents on a glass table

Is Your Insurance Compliance Fact or Fiction?

Let’s be honest—obtaining clarity on both a contract and the related insurance compliance has turned into one of the most daunting tasks for “upstream” parties like landlords, owners, and operators. When reviewing vendor contracts, are you confident that your insurance compliance is fact, or are you relying on fiction? Here are five key points to consider when verifying whether your insurance compliance is airtight or just wishful thinking: 1. Contract Clarity: Fiction or Reality? If the contract with your counterparty isn’t clear, you could be setting yourself up for a nightmare down the road. A legitimate, fact-based contract should include commercially reasonable insurance terms and limits that protect your interests.

The ALS Group July 9, 2024

Landlords Risk and Insurance Buyer Beware

New Jersey’s real estate market offers lucrative opportunities for property investors and landlords, but it also presents a complex web of risks—particularly regarding insurance. Proper insurance coverage is crucial for protecting your investment, but many landlords face pitfalls that can result in significant financial and legal issues. While most landlords rely on insurance brokers to secure their policies, a specialized advisor like The ALS Group can play a pivotal role in identifying and addressing gaps in your coverage. Common Pitfalls in Landlord Insurance Inadequate Coverage for Property Damage One of landlord insurance’s major pitfalls is inadequate property damage coverage. Many standard policies may not include protection for specific risks such

The ALS Group July 9, 2024

Two individuals shake hands, indicating a critical discussion about insurance and risk management.

Builders Risk Insurance An Often Misunderstood Coverage

When a company starts a construction or renovation project the subject of Builders Risk Insurance comes up. It could be when the Construction Management Agreement (CMA) is being drafted or when reviewing lender insurance requirements, but it is bound to happen. Builders’ Risk is a “quirky” coverage in that it is written on non-standard form, covers a variety of exposures, and the terms of coverage generally not well understood by insurance professionals that do not specialize in construction insurance. So, as an Owner, what to do? Well, first thing is to understand what you want to cover. Builders’ Risk has three major coverage areas that can be included: Each area

The ALS Group February 21, 2024

Hired and Non-Owned Automobile Coverage – “but I have no autos”

An often misunderstood insurance coverage that is very important for a business, is Hired and Non-Owned Automobile (“HNOA”) coverage. Most of the time, the company that is considering such coverage doesn’t think it has exposure to this particular risk since they do not own any automobiles. This could not be further from the truth… Recently, there was a tragic accident in NYC Times Square, where a delivery vehicle on its way to a jobsite fatally injured a pedestrian. So, here’s what will, most likely, happen…the family of the deceased would, surely, look to the driver of the vehicle and the company that owns it for compensation. Unfortunately, that’s not it, they [the

The ALS Group November 7, 2022

A green road sign with the bold text "CYBER CRIME" stands out against a cloudy sky background

OFAC Advisory Makes Paying Cyber Extortion Ransom Illegal

Cyber Extortion Ransom Illegal Ransomware continues to be a major issue for companies regardless of size. It may be hard to believe, but the reason for this lies with the victims. The quickest and most often used resolution to the attack is to pay the ransom. While paying the ransom may resolve a problem for an organization, it encourages cyber criminals to continue the attacks. To combat it, OFAC, the U.S. Department of the Treasury’s Office of Foreign Assets Control, issued an Advisory in October 2020 stating that paying the ransom to a malicious actor in a ransomware event could land a company in hot water; and by hot water

The ALS Group September 29, 2021

How Long Should you Keep your Insurance Policies?

As, risk managers, we often get asked by clients, “what is the appropriate period to retain insurance policies” – the easy answer is “forever”… You are probably thinking that guidance seems a bit excessive, however quite a few types of policies, such as commercial general liability, may be triggered long after the policy has expired and thus should not be discarded but rather meticulously tracked.

The ALS Group September 14, 2021

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

The Tradesman Lawsuit: Insurance Claims and Risk Management Awareness

Identifying General Liability Insurance Gaps: A CEO’s Guide to Risk Management and Liability Protection

Is Your Insurance Compliance Fact or Fiction?

Landlords Risk and Insurance Buyer Beware

Builders Risk Insurance An Often Misunderstood Coverage

Hired and Non-Owned Automobile Coverage – “but I have no autos”

OFAC Advisory Makes Paying Cyber Extortion Ransom Illegal

How Long Should you Keep your Insurance Policies?

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