We manage more than a quarter billion dollars of premiums for a diverse range of clients around the globe.
One of the most misunderstood areas of the insurance business is claims handling. Often mishandled, this function is the reason companies buy insurance. To be certain the following four key elements are being managed effectively, there are several points to remember when evaluating your claims management program:
A recent article in the Wall Street Journal on May 26, 2011, discusses how the federal government and a New York real-estate company are negotiating to settle suspected federal housing discrimination violations that impacted the disabled.
An article published in the Wall Street Journal on May 24, 2011, illustrates the economic losses Sony Corporation faces due to the impact on its supply chain from the disaster in Japan and the hacking of its PlayStation Network. Both the tsunami and earthquake hurt Sony’s financial performance, which led it to announce an expected annual loss of $3.2 billion this year. In addition, its PlayStation Network also suffered a massive cyber attack. Hackers breached over 100 million user accounts worldwide, stealing private customer information. Sony consumers were unable to utilize their PlayStation gaming systems and Sony must manage the ensuing risks associated with the intrusion. It is expected that
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:
The most effective claims management programs have four elements in common:
Controlled Insurance Programs (CIP) are becoming more and more common today but a contractor must be very careful to examine the terms and conditions of the CIP carefully as this may be their sole source of coverage. One of the most misunderstood issues is what happens when a CIP is cancelled. Virtually every CIP program has a section in the “manual” that allows for the program to be cancelled with some notice (hopefully) to the contractor. In many cases it could be a short as 30 days. What happens to the bid-deducts? Can you now submit a change order to increase your cost to Include insurance? Does the work you
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
An article in the Wall Street Journal, dated October 22, 2010, reported that The Avalon on Chrystie Place settled with the U.S. Attorney’s Office for $2.2 million, to cover discrimination claims made by persons with disabilities because of failure to abide by FHA Guidelines set in 1991. The Avalon is just one of eleven developers facing civil action regarding discrimination against disabled persons. Other Owners/Landlords/Building Managers across the country are facing heavy costs in order to make their buildings compliant with the 1991 Fair Housing Act. A thorough Risk Management Assessment can help identify and mitigate risks for both first and third party exposures.
Over the last 10 years the advent of an Owner Controlled Insurance Program (OCIP) has gained popularity for many reasons. Theoretically, buying one Program for the benefit of all parties to the Project provides cost efficiency and ease of claims administration. There is reduced “finger pointing” among [contractor] insurers and “control” of the site generally improves.
By, Al Sica Managing Principal The ALS Group
