CyPro Saves the Day

CyPro, a product designed by Willis has been designed to protect business from interruption and recovery costs caused by malicious and accidental loss of data. It is specifically developed to help clients reduce their exposure to risks associated with technology use. It provides financial assistance not only for repairing systems and replacing data, but also reduces damage to reputation, for example, paying for the services of a public relations firm. Terri Driscoll, a business development director at FINEX Professional Indemnity said: “Technology is now driving business, yet businesses have failed to change the way they insure against these new perils. Companies’ assets are moving from “bricks to clicks” yet their protection against the enormous reliance on technology to run their business remains woefully inadequate.”

FGIC Gets Downgraded

Financial Guaranty Insurance Company (the world’s third largest bond insurer) has had its credit rating downgraded along with Financial Guaranty Insurance Company and FGIC UK Limited from Aaa to A3. The insurance is facing a rise in claims resulting from the US sub-prime mortgage crisis. FGIC insures approximately $314 billion of debt and Moody’s estimates that it could face sub-prime mortgage bond claims of $9 billion, meaning the company’s reserves are around $4 billion short. FGIC is now separating out its business to protect its low-risk portfolio, which guarantees local government bonds used to finance infrastruture projects.

Makers of Stanley thermos sued for damages.

by: Christine Zafra

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As you prepare your usual coffee in morning to bring it to your office (or someplace else), you smell the aroma of fresh coffee beans being brewed. As you pour the liquid inside your Stanley thermos, an unfamiliar sound startled you. BANG! Suddenly, your surroundings become black.

No, it’s not that you’re injured. It’s due to the charcoal that splattered from the thermos. The 2005 edition of Stanley thermos were withdrawn in the market because of some handle issues. If the vacuum cover of the handle is broken, chances are, it’ll explode and charcoal powder will burst in the air. A family in Arkansas sued the company (since most of their belongings had black powder in/on it) and the owners of Stanley thermos were more than willing to pay and assist them for the damages.

Photo taken from http://www.cpsc.gov

Personal Injury Claims in Scotland to Extend Time Limit

DWF commercial firm oppose proposals by the Scottish Law Commission (SLC) to extend the time limit on personal injury claims from three to five years. The reforms are intended to help those bringing claims for occupational diseases including asbestosis and mesothelioma, but Simon Denyer, DWF insurance partner, says “they are out of kilter with other developments which will have the effect of speeding up cases”.

The English Government has drawn up plans to speed up the settlement of personal injury claims. Under the new proposals, lawyers will have five days after being contacted by a claimant in which to notify insurers of a potential claim. Insurers will have 15 days in the case of a motor claim and 30 days for a workplace or public liability claim, to decide whether or not they are going to settle.

Ship and cargo premiums to fall

Ship and cargo premiums are expected to fall by up to 10% during 2008 even though risks in the marine sector are increasing. According to Aon’s 2008 Marine Insurance Market Review, ship and cargo owners are paying less in premiums because claims have decreased as a result of advances in ship design, cargo handling and general maritime safety. However, the market for protection and indemnity (P&I) will continue to see premium increases because both the number and size of claims is rising. To a lesser extent, the same is true of hull and machinery insurance.

Alarm Bells – Ringning hard for Businesses

nojobsThe economy is on the rocks and businesses are running out of options, thanks to the lucky few who do have business insurance they have a safety net that might just get them through this recession. Many failed to see the protection of ample coverage but today that investment is money well spent. Just hope the economic turmoil ends soon or even that may not be enough to stave off bankruptcy for some of the worlds biggest and most financially stable have been hit hard.
Life isn’t getting any better for jobs are being lost at the rate of thousands per day. Many businesses are counting on the bailout proposals by the new president who will take office on the 20th of this month, who proposes sweeping changes to how and whom we do business with. With more businesses having to close doors each and every day, time will tell if the new government’s proposed change would make a difference in the troubles economic waters to today.

The Risk of Self-Insured Groups

A recent survey by Opinion Research Corporation (ORC) of Princeton, N.J showed that most small business owners are not fully aware of the financial risks involved in obtaining workers’ compensation insurance through self-insured groups. According to an article in Marketwatch.com, the recent Small Business Opinion Poll showed that most small business owners and managers are not aware that they could be legally and financially responsible for the entire costs of workers’ compensation claims owed by their self-insured group. Among the possible financial dangers associated with self-insurance are: failure of the largest company in the group, successive years with serious injuries, and the responsibility for paying out claims for up to five years–even if a small business leaves a group. Self-insured group members also assume “joint and several liability,” sharing liability among members on a pro-rata basis. For example, in a worst case scenario, a small business which pays 8% of the contributions to the trust set up to pay injured workers would, if the trust develops a deficit, be liable for 8% of all injured workers payments for the life of their claims.

Construction deaths in New York, alarming.

by: Christine Zafra

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Whether due to negligence on the part of the victim or the faulty equipment in the construction site, one fact remains: the victim died on his/her workplace.

Now, leading New York construction accident lawyer David Perecman is becoming worried about the worsening conditions of construction sites where a lot of workers sacrifice their lives for work’s sake. According to New York Times, a total of 10 deaths already happened for the past 3 months in the year 2008. One building already received 25 building code violations but the authorities weren’t able to do anything about it.

Now the question is this: is greed really a priority over safety?

Photo taken from http://www.rsc.org.uk

Assure UK Business Insurance: poor service?

by: Christine Zafra

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Assure UK Business Insurance is not quite making a good name in the business insurance industry. Although their prices are competitive (lower than most business insurance companies), some claim that enrolling a premium in their company is not worth it. Why? Their customer service (if they ever have one) is poor. UK Insurance Index, a website that allows customers to comment on certain services offered by insurance companies in the UK, had there posted in their official page a review of the said company. The commenter said that his/her request to cancel the premium took days (or even weeks!) and that a lot of “promised calls” were made but no calls came back from the said insurance company.

Photo taken from http://machinedesign.com

Risk management as a precautionary.

by: Christine Zafra

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Ever since the 9/11 attack in the United States, many countries have been very wary about their own security. A lot of conspiracy theories were formulated since the area where the planes were spotted was a “no fly zone”, but nevertheless, if it was really an attack from another country, people should now be precautious of their surroundings.

Or so we thought. Marsh, a risk management company found out that most of the businesses in London, whether large or small, are not prepared if things go the wrong way. Some proponents of Marsh say that although these small-time businesses can’t do anything to thwart future attacks, they can do some precautionary measures, through some risk management strategies, to prevent further damages.

Photo taken from http://www.bedfordhospital.nhs.uk