Posts Tagged "business risk"

The Story of Business Risk Insurance in 2015

Posted by on Dec 31, 2015 in News | 0 comments

The Chalkboard provides a recurring infographic that appears in each issue of National Underwriter Property & Casualty. They focus on the insurance industry’s most pressing market lines and trends, stats and facts (illustrations by Shaw Neilsen). Here’s a look at two of these commercial insurance risks: 2015 was a year focused around cyber security and the increasing frequency of data breach events. For this infographic, they included 117 data breach insurance claims, from carriers that include ACE, AIG, Chubb, Lockton, Liberty International Underwriters, OneBeacon, Philadelphia, Travelers, XL Group and Zurich NA. Here is a summary of the company’s findings: Workers’ Compensation was also gained a lot of news coverage in 2015. Did you know that medical services now contribute to more than 60% of Workers’ Comp claims?  In part due to two cost drivers: physician dispensing and compounded drugs. Here is a summary of findings from Marsh, the California Workers’ Compensation Institute and insurer WC Accident Fund...

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Risk Assessment Fundamental to a Business Continuity Plan

Posted by on Dec 10, 2015 in News | 0 comments

When it comes to a realistic, reliable business continuity plan, risk assessment is fundamental. To remain better positioned to recover from a disaster, companies that proactively consider which events are most likely to occur are able to focus disaster response planning efforts where they will yield the best return on investment. When it comes to threats your company faces, as well as their potential impact on business operations always base response and recovery strategies on a good understanding these threats and potential impacts. The following list via our partner Travelers.com contains some common threats that may leave critical business resources and operations vulnerable. Natural disasters such as tornadoes, hurricanes, floods, earthquakes, lightning strikesand wildfires. Manmade or technological events like fires and explosions, industrial accidents, chemical/hazardous material spills, communications and utility outages, system disruptions and transportation accidents. Malicious attacks including terrorism, bomb threats, vandalism, threats to reputation (off- or online), protests, civil unrest/riots, robbery and armed intruders. Cyber attacks such as denial of service attacks, computer viruses, worms, Trojan horses, cyberwarfare and cyberterrorism. Loss of workforce events such as long-term disability or illness, epidemic (e.g., flu, virus outbreaks), fatalities and worker strike. Supply chain disruptions, which can include counterfeit parts, regulatory requirement violations and transportation disruptions. Human error, such as poor training, poor maintenance, carelessness, misconduct, substance abuse, fatigue and counterfeit parts. Assessing Risk Although natural disasters seem to be happening more frequently than ever, particularly in the U.S. where nine of the 10 most costly disasters in 2012 occurred,* many business losses are actually caused by small events that are not wide-spread. When determining what the biggest risks are to your businesses, consider the following: Historical – What has happened in your community, to your facility or neighborhood before? Geographic – What is your proximity to flood plains, major airports, etc.? Physical – What is it about the design or construction of your facility/office that might make your business particularly susceptible to a certain event? Organizational – What is it about your employee, operational or technological infrastructure that might make your business particularly susceptible to a certain event? Regulatory – Is your business/industry required or mandated to prepare for any hazards? *Source: Insurance...

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Aging Workforce Cited as Greatest Business Risk Challenge

Posted by on Sep 24, 2015 in News | 0 comments

Business risk caused by demographic change (aging) was cited as the greatest diversity challenge by 48 percent of the survey respondents. Rounding out the top three challenges were gender (29 percent) and nationality (18 percent). Thanks largely to a debate in Europe about quotas for women and about the immigration of foreign talent, the topic of diversity management appears to be a focus at most companies: 80 percent of respondents said that their company had implemented at least three measures to enhance employee diversity. For example, the measures cited most frequently included flexible working-time models and parental leave—both seek to increase the proportion of women in the workforce. However, the survey also found that most companies apply these initiatives only selectively.  “Our research has shown that the business case for diversity is clear and that HR needs to integrate such measures into its broader people policies. A modern workplace must represent its customer base in order to be truly effective and to deliver products and services that drive it to the competitive edge in a global environment,” explains Stephanie Bird, an author of the report and the director of HR capability for the Chartered Institute of Personnel and Development (CIPD). In addition, the survey results reveal considerable differences in how various groups of employees view the effectiveness of diversity initiatives. For example, older workers rate measures for promoting age diversity as less effective than their younger colleagues do. “In order for diversity to be successful, top management must visibly support the objectives, and the entire workforce must be integrated in the development and execution of the programs,” explains Jean-Michel Caye, senior partner at BCG, expert in talent and leadership, and an author of the report. Diversity Is an Integral Part of HR—and the Entire Company “Diversity is an integral element of HR work. It’s a recurring theme that touches all topics, including workforce planning, recruiting, and career management,” adds Pieter Haen, president of EAPM and an author of the report. Only initiatives that go beyond the minimum level of diversity required by legal mandates and social norms can help companies gain advantage. As a first step, companies must analyze which aspects of diversity can promote their business success. The BCG/EAPM report explains how employee diversity can be increased to advance business imperatives through several steps. • Create transparency. The foundation of all strategic HR work is strategic workforce planning—the quantitative and qualitative analysis of workforce supply and demand and of the individual capabilities of workers. Workforce demand should reflect overall business trends as well as a company’s business strategy. • Redefine recruiting. Tailored recruiting campaigns expand the existing talent pool by targeting underrepresented groups, such as female engineers. In addition, the employment of HR officers from outside Europe enables more efficient recruiting of international talent. • Promote diversity. It is equally relevant to promote diversity within the company’s existing workforce and among new hires. Evaluations of employee performance and potential, as well as career moves by managers, should be assessed for how permeable they make the company for new talent groups. The sooner the promotion of diverse talent is achieved at the lower levels in a company’s hierarchy, the better the chance that the organization’s internal diversity can be tapped and enhanced. • Build leaders for the twenty-first century. At many companies, a 2x2x2+5 development program has proved successful. In such a program, aspiring managers are exposed to two business units, two countries, two functions, and at least five different projects. • Retain employees. New groups of employees are presenting employers with new challenges. Financial incentives alone are losing their attractiveness—the ability to...

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The World is Growing Riskier According to Most Americans

Posted by on Jun 9, 2015 in News | 0 comments

Via our partner company, www.Travelers.com: For the second year in a row, the Travelers Consumer Risk Index has found that six in 10 U.S. consumers feels the world is growing riskier. Leading concerns include distracted driving, financial risks and identity theft/personal privacy loss. Millennials, those aged 18-34, are most likely to report feeling that their risk level is low, compared to older age groups. Take a look at this infographic for more...

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It Just Takes One Accident to Place Your Entire Business at Risk

Posted by on Jun 4, 2015 in News | 0 comments

The threat of a lawsuit is around every corner and the unfortunate reality is that it is inherent with every employee you hire, customer you serve, or client you sign.  There is some part of your business that leaves you exposed to a lawsuit bankrupting both you and the company no matter how small your business is. With that being said, I wanted to provide reasons why every business needs to protect itself against risk with the proper types of insurance – here are seven: It Just Takes One All it takes is one accident – a broken contract – a disgruntled worker – to place your entire business at risk. Let’s say your company gets sued for negligence – even if you win, it can easily put you out of business simply because the cost it will take to mount your defense. Personal Injury Happens You are open to personal injury liability claims every minute of every day if you own property where customers come to do business. If they happen to fall on your business premises and you’re not insured, you are liable for medical bills, lost wages, pain and suffering and other expenses that will come out of your own pocket. A Flimsy Corporate Shield Many small business owners use a “corporate shield” thinking that they have protected their personal assets from any business liability claims or judgments. This is far from the truth and there are circumstances where that protection doesn’t stand up in court. Without business insurance, you could literally lose everything you own. Thinking Exclusions Apply Any employment liability claims may be excluded from a general liability policy. Property loss may be excluded if you have a commercial liability policy. And it is unlikely that your business assets are covered if you are a home-based business owner with homeowner’s insurance. Losses beyond Your Control Would you be able to replace them today and get back to business if you walked in tomorrow to find your office had been robbed and every computer was gone?  If you don’t have insurance to help replace what is lost, losses from theft, natural disaster, and other accidents could bankrupt your business. Reckless Driving Accidents Happen Most business owners believe that the auto insurance policy that covers their personal auto will cover them if they are driving their car on company business.  You could find yourself paying for someone else’s pain and suffering out of your own pocket for the rest of your life if this isn’t true and you are in an accident where you’re at fault. Depending on Other People’s Insurance Let’s say that another person causes an accident which ends with a car coming through the front window of your storefront and destroying your merchandise. Their auto policy – if they have one – might cover some of the damage and replace products but it might not cover or provide enough coverage to compensate you for lost income while the shop has to be closed for repairs. Waiting until something happens or procrastinating while you figure out whether or not you can afford to purchase business insurance is never a good option – the real question is – can you afford not to insure your business? Contact me today for a free...

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