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.
In the wake of an aggressive hurricane season doing extensive damage to the southeast part of the United States, many homeowners are realizing that their basic homeowner’s policy does not cover flood damage. Instead, flood damage insurance in the United States has to be purchased separately. Most people who have flood insurance policies purchase their policies through the National Flood Insurance Program. That Program faces a number of challenges moving forward that may affect the affordability of its offerings.
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.
The Atlantic hurricane season runs from June 1 to Nov. 30, and as a business owner in the Philadelphia area — only 50-75 miles from the coastline — you need to take the time to understand how your property coverage will respond to a hurricane or windstorm. If you don’t understand your coverage and deductibles, along with any potential exposure, the aftermath of a hurricane can be devastating to your business, says Phil Coyne, vice president at ECBM.