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Business Continue Embracing The Cloud Before Comprehensive Cyber Coverage Is Introduced

Ideally, most businesses would purchase cyber insurance coverage. This coverage can protect your company from the costs associated with data breaches, ransomware attacks, and other potential avenues of liability resulting from your cyber systems. However, as more and more companies move their operations to the cloud, significant questions arise as to how this impacts a company’s risks, exposures, and insurance.

Cyber insurance policies typically cover a range of damages that can be caused by a system breach. These expenses range from notification and defense costs to business interruption and data loss coverage, as well as a host of other types of damages. Because cyber insurance is not yet standardized, though, the types of damages that are covered can vary significantly from policy to policy- and from carrier to carrier.

Browning-Ferris's Expected Shakeup Didn't Go Quite As Expected

 

The National Labor Relations Board revised its definition of a joint employer in 2015, leading to a host of concerns from various businesses fearing expanding liability. The decision, commonly known as Browning-Ferris, survived multiple appeals and concerted lobbying of Congress. In the wake of the 2016 election, the revised joint employer rule seemed doomed, as the new administration seemed certain to revert to the old rule, considered friendlier to business owners.

Best Practices In Managing A Claim Begin With The Wording Of The Claim

No one wants to have to submit a claim to their insurance company.  For businesses, claims can mean increased costs, increased hassle, and loss of control.  That unpleasantness can lead to delays and avoidance when handling issues and accidents that could turn litigious.  Effective claims management means taking proactive approaches to these issues at an early point- as a set up for the best possible outcome.

 

NLRB Decisions On Bargaining Units And What Businesses Should Remember

  

As part of a series of decisions issued by the National Labor Relations Board at the end of 2017, a new ruling overturned an Obama era policy related to defining bargaining units for unions.  The previous policy had represented a significant departure from National Labor Relations Board cases in terms of determining appropriate bargaining units when employees seek to unionize by creating an “overwhelming community of interest” standard.  The case announcing that previous policy, known as Specialty Healthcare, had sparked a good deal of controversy in the business world but had survived appellate review in eight different federal circuit courts.

Lawsuits: Adding To The Costs Of A Data Breach And Cyber Claims

Class action lawsuits present numerous challenges for both defendants and harmed parties.  The costs of such lawsuits and the situations in which lead plaintiffs bring them often mean the only ones that benefit from them are the attorneys on both sides of the aisle.  While legislators seek to remedy some aspects of class litigation, these suits continue to expand.  Recently, they have expanded into the area of cyber crimes and data breach litigation.

More Court Decisions And Promised Federal Action On Fiduciary Responsibility

 

 On March 15, 2018, the United States Court of Appeals for the Fifth Circuit dealt Obama era regulations their most recent defeat. In the wake of numerous other overturned rules by regulatory action or executive order, a federal court struck down the Department of Labor’s fiduciary rule. The rule revised the definition of who constituted a fiduciary of retirees under the Employee Retirement Income Security Act (“ERISA”) and changed the exemptions available to advisors who sought to earn commissions for investment advice.

Contracts And Additional Insured Status [Understand Your Risk]

 

 

Contracts in some industries, especially construction, often require an additional insured endorsement as part of the contract’s insurance requirements. This normally takes the form of the general contractor requiring a subcontract to list the general contractor as an additional insured on their general liability policy, as well as others. Because of these requirements, many general liability policies offer a blanket additional insured endorsement for any entity required to be added as an additional insured by a written contract. The language used in these contracts and endorsements can have far-reaching consequences and failing to understand them can cost companies millions of dollars.

Higher Education The Focus Of Fiduciary Risk Litigation

 

In 2016, the same law firm started twelve different lawsuits against twelve different universities alleging violations of federal retirement law. Schlichter, Bogard, and Denton is often credited with starting the trend of filing lawsuits over excessive fees charged to retirement plans and has apparently moved on to 403(b) plans offered by nonprofit organizations. The university lawsuits alleged similar violations of the Employee Retirement Income Security Act (“ERISA”), claiming that the universities violated their obligation to their employees by failing to take steps to keep fees low while maximizing returns. The trouble for these organizations is that 403(b) plans and 401(k) plans have the same obligations under ERISA. The naming distinction comes from how such plans are treated under the tax code.

Cyber: What Data Loss Claims Look Like in 2018

 

Many businesses remain hesitant to purchase cyber insurance policies.  Studies show fewer than a third of a businesses within the United States have specific coverage for their cyber risks.  Yet losses resulting from those risks can easily reach catastrophic levels.  This has left underinsured companies searching for unique recovery theories under their traditional insurance policies when suffering the types of losses that cyber insurance would cover.

Risk Management Is Still A Top Priority, Regardless Of Your Joint Employer Status

In September of 2017, Republicans gained a majority of seats on the National Labor Relations Board. After several months spent relatively quietly, the National Labor Relations Board overturned or reversed a host of decisions and regulations in the first few weeks of December. All the reversals focused on Obama-era policies only in place for a few years.