Risk transfers are a vital aspect of any comprehensive risk management plan. Theoretically, those in the best position to avoid a risk should always bear responsibility for the risk. The real world does not work that way, unfortunately. Oftentimes, larger companies and larger contractors use risk transfers to try and push liability “downhill” – onto the backs of smaller companies with less negotiating leverage.
When people think of Directors and Officers Liability Insurance, they often think of massive, publicly traded multinational corporations and shareholder derivative lawsuits that allege damages in the billions of dollars. This can lead smaller, private companies to assume that such coverage does not provide them with significant benefits. Yet these policies can cover a number of different types of losses that impact small companies. All businesses should consider whether directors and officers liability coverage might help them better manage their risks.
As part of Preparing for Hurricane Season and other emergencies, we wanted to share with you some insight from a company that specializes in Emergency Communications. Trumpia, which earned a reputation as the most complete SMS solution including user-friendly user interface and API for mobile engagement, Smart Targeting, and advanced automation had these helpful tips to share.
Indemnification clauses in commercial contracts can present a number of potential issues. When the parties to the contract do not properly think through or write out indemnification provisions to address these issues, it can lead to costly and dangerous unintended consequences. Companies need to think through exactly what they mean when they seek indemnification from a contracting party and ensure their approach to indemnification issues comports with their approach to their insurance coverage.
Lawsuits over retirement plans and the failure of organizations to meet their fiduciary duties under the Employee Retirement Income Security Act (ERISA) continue to proliferate and make the news. Previous defendants in these suits include high profile companies like Lockheed Martin and Boeing. Now these lawsuits have expanded to include non-profit organizations such as educational institutions and hospitals.