Contracts & Insurance – The Devil is in The Detail
Contracts & Insurance – The Devil is in The Detail
The ALS Group
April 8, 2014
We manage more than a quarter billion dollars of premiums for a diverse range of clients around the globe.
Contracts & Insurance – The Devil is in The Detail
Earlier this week a fatal incident occurred at a housing development in Ewing New Jersey. According to the news reports, event was, allegedly, caused by contractor error when a 2 inch gas line was ruptured and ignited an explosion that killed one person and injured many others.
In its 2012 Report to the Nations, the Association of Certified Fraud Examiners (ACFE) found that organizations typically lose five percent of their revenue to fraud each year. Even more frightening is this statistic from that report: the medium loss of survey respondents was $140,000. Over one-fifth of the losses studied exceeded $1 million. Small-to-medium sized businesses are often fraud targets because they lack anti-fraud controls. The smallest organizations in the ACFE study suffered the largest median losses.
I’m sure everyone remembers the day the lights went out for 34 minutes during the Ravens/49ers Super Bowl in 2012. Other than Ray Lewis having some choice words about the outage being more than a coincidence, the effects were minimal. What would have happened if they did not go back on?
Civil unrest in nations formerly viewed as politically stable, such as Sweden and Brazil, is forcing global organizations to consider Political Risk insurance coverage. A recent paper by nationally recognized insurer called the need for Political Risk coverage a “top emerging concern” for global companies. This coverage is meant to help mitigate political exposures that are, normally, excluded from standard property policies to cover the risk to a company’s physical and financial assets. Some of the perils this policy will insure against are Terrorism, Riots, Deprivation or Confiscation of Assets, Strikes, Civil Commotion, Exchange Transfer Risk, Rebellion, and Insurrection. It is very difficult to model, price and determine the appetite for
Jury verdicts for premises liability against those who own or manage land, stores, taverns, shopping malls and apartment complexes just keep climbing. A few California verdicts include a $7.5 million judgment after a chiropractor slipped and fell in a Starbucks and a $55 million verdict for a gang-related shooting against a security company that oversaw on-site safety at an apartment complex.
Even when no injury occurs, after any workplace incident or accident, a written incident report allows a timely investigation. Some incidents are minor and need only slight fixes to prevent their recurrence. However, in more serious situations where a serious injury or property damage could have or did occur, a subsequent failure analysis allows management to determine how to best prevent similar occurrences.
Productivity motivates today’s business owners, which includes purchasing the latest computer-driven equipment and machinery. To help protect their investment, most companies purchase property insurance coverage. However, the sophistication of today’s equipment may leave businesses underprotected if they only take a traditional approach to their property coverage.
A recent Wall Street Journal article about a high profile factory accident, this time in Cambodia, brings new emphasis to the fallout that can arise from supply chain risk. Asics Corporation, the Japanese sport shoe manufacturer, sourced some of its shoes from a factory in Phnom Penh. In April 2013, a mezzanine floor collapse killed a young father and a young woman who, reportedly, was only 15. The incident also injured a number of other workers. Fallout from the incident was almost immediate. Asics instructed its nine suppliers in Cambodia to join Better Factories Cambodia, which keeps tabs on working conditions in the Cambodian garment industry.
Nothing upsets a business owner or manager more than paying for and managing the fallout from a suspect workers’ compensation injury. Here are a few but, certainly not all, ways employers can help prevent a fraudulent claim and avoid allowing employees to extend their time away from work once injured.
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At The ALS Group, we help clients achieve their strategic goals via expert and insightful identification, quantification, and mitigation of the risks that could impact their business, or present opportunities for it.
More Information: [email protected]
Florida
1800 NW Corporate Blvd Ste 202
Boca Raton, FL 33431
Tel: +1-561-437-0024
At The ALS Group, we help clients achieve their strategic goals via expert and insightful identification, quantification, and mitigation of the risks that could impact their business, or present opportunities for it.
More Information : [email protected]
New Jersey
175 Main St
Woodbridge, NJ 07095
Tel: +1-732-395-4250
Florida
1800 NW Corporate Blvd Ste 202
Boca Raton, FL 33431
Tel: +1-561-437-0024